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Berkshire Hathaway, under CEO Greg Abel, has pursued large moves in homebuilding and technology, including an $8.5b deal for Taylor Morrison and the acquisition of McGuinn Homes.
The company has made Alphabet a core holding, increasing its position and joining a $10b private placement to support Alphabet’s AI build out.
Shareholders are set to vote on the Taylor Morrison transaction, which would expand Berkshire’s housing footprint through its Clayton Homes division.
Berkshire Hathaway (NYSE:BRK.A) is in a different phase, with Greg Abel putting more weight behind technology and housing operations than in the past. The stock trades around $739,750.0, with a gain of 43.0% over the past 3 years and 77.1% over 5 years. Those figures frame the backdrop as Abel tests how much concentration and direct expansion investors are comfortable with.
For you as a shareholder or potential investor, the key question is how this shift toward Alphabet and vertically integrated housing could reshape Berkshire’s risk and return profile over time. The upcoming vote on Taylor Morrison, combined with recent moves at Clayton Homes, will show how much backing Abel has for this new approach to capital deployment and business expansion.
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2 things going right for Berkshire Hathaway that this headline doesn’t cover.
Berkshire Hathaway’s push into both site-built housing and concentrated technology bets marks a clear shift in how capital is being used under Greg Abel. On the housing side, Clayton’s planned US$8.5b purchase of Taylor Morrison, followed quickly by the McGuinn Homes deal, moves Berkshire further into higher margin community-building and build-to-rent projects rather than just manufactured homes. In technology, a US$31.1b position in Alphabet, supported by a US$10b private placement tied to AI infrastructure, sits alongside a long-standing US$58b Apple stake. That pairing gives Berkshire exposure to both AI compute demand through Alphabet and device distribution through Apple. For you as a shareholder, the question is how comfortable you are with this higher concentration in a few technology giants and a more unified housing platform alongside a roughly US$397b cash pile that has not yet been fully deployed.
