Berkshire Hathaway’s new CEO Greg Abel made two major investments this week, acquiring homebuilder Taylor Morrison for $6.8 billion and purchasing $10 billion in stock of Alphabet, Google’s parent company, according to fortune.com. These moves mark a significant shift in Berkshire’s strategy under Abel’s leadership, who took over from Warren Buffett earlier this year.
Abel’s acquisition of Taylor Morrison on Sunday was followed by the $10 billion stock investment in Alphabet on Monday. Abel indicated plans to consolidate Taylor Morrison with Berkshire’s existing homebuilding operations, including Clayton Homes, which specializes in manufactured and site-built homes. This consolidation aims to create a unified platform to expand homeownership opportunities in the U.S., a departure from Buffett’s traditional hands-off approach to acquisitions.
The investments reflect a strategic pivot for Berkshire Hathaway, which has historically allowed acquired companies to operate independently. The Taylor Morrison deal complements Berkshire’s portfolio of housing-related businesses such as Benjamin Moore paint and Shaw Floors. Meanwhile, the Alphabet stock purchase expands Berkshire’s stake in the tech giant, which had already grown to nearly 58 million shares valued at almost $17 billion by the end of March.
By the end of March, Berkshire’s Alphabet holdings had tripled, and the recent $10 billion stock purchase includes $5 billion each in Class A and Class C shares, the company confirmed. Abel’s moves this week underscore a more active investment approach, with the Taylor Morrison acquisition and Alphabet stock purchase totaling $16.8 billion.