economy
Greg Abel Just Made His First Big Deal as Berkshire CEO. Why Warren Buffett is Happy
Berkshire's purchase of homebuilder Taylor Morrison gives the conglomerate a larger foothold in housing and appears to have been struck at a bargain valuation.
TL;DR
- Berkshire Hathaway, led by CEO Greg Abel, acquired homebuilder Taylor Morrison for $6.8 billion.
- Warren Buffett lauded Abel's efficient and independent execution of the deal.
- The acquisition is seen as a bargain valuation compared to recent industry transactions.
- The deal strengthens Berkshire's existing substantial footprint in the housing industry.
- Integrating Taylor Morrison with Clayton Homes could establish one of the top five U.S. homebuilders by volume.
- The acquisition represents a small fraction of Berkshire's substantial cash reserves.