Berkshire, under its new CEO, invests $16.8 billion in two days
Greg Abel appears to be making his mark at Berkshire Hathaway, which committed $16.8 billion in two days to acquire homebuilder Taylor Morrison Home Corp. and help Google develop AI.
These deals could begin to satisfy investors who urged Abel. Who succeeded Warren Buffett as CEO in January, to do what his predecessor failed to do: spend more of Berkshire’s cash.
Many investors and analysts noted that Berkshire’s cash. Which stood at $380.2 billion as of March 31, weighed down the share price of the Omaha, Nebraska-based conglomerate.
As part of the Mountain View, California-based business’s $80 billion capital raise. Berkshire Hathaway decided on Monday to purchase $10 billion worth of shares in Alphabet, the parent company of Google, through a private placement.
Berkshire’s faith in Alphabet’s supremacy in artificial intelligence is evident in this investment.
As of March 31, Berkshire had $16.6 billion worth of shares in Alphabet. Having started investing in the company in the third quarter of last year. With this most recent investment, Alphabet should rank among its top five common stock holdings, with Apple, the manufacturer of the iPhone, at the top.
The acquisition of Taylor Morrison, with operations in 12 U.S. states, for $6.8 billion was announced on Sunday.
This would help Berkshire Hathaway expand its commitment to the housing sector. Which also includes the manufactured home company Clayton Homes, as well as sellers of bricks, paint, and insulation.
Berkshire Hathaway also operates one of the largest residential real estate agencies in the United States.
While Berkshire Hathaway has pledged to maintain a $30 billion cash reserve, investors indicated that it might consider repurchasing more shares or paying its first dividend since 1967.
