Greg Abel expands Berkshire with $17 billion in deals

Berkshire Hathaway, under new chief Greg Abel, has agreed to two large transactions worth nearly $17 billion over a few days. The company plans to buy homebuilder Taylor Morrison Home for $6.8 billion, excluding debt, and invest $10 billion in Alphabet through a discounted private placement. The moves suggest Abel is using Berkshire’s large cash position more actively than before. Berkshire had nearly $400 billion in cash at the end of March, and the latest deals mark a broader push to deploy that capital after years of criticism that the company was too cautious. The Alphabet investment is notable because it increases Berkshire’s exposure to technology and artificial intelligence infrastructure, while also reflecting Buffettstyle deal terms with a 6.5% discount to market price. The Taylor Morrison purchase expands Berkshire’s housingrelated businesses. Buffett praised Abel’s speed in completing the homebuilder deal.