Summary
- A landmark first deal under new leadership. Berkshire Hathaway has agreed to buy homebuilder Taylor Morrison for $6.8 billion (around $8.5 billion in enterprise value). This is the first major acquisition announced since Greg Abel succeeded in Warren Buffett as CEO, making it a notable signal of how he intends to deploy the company's capital.
- An active reshuffling of the portfolio. Abel has been trimming or exiting defensive and blue-chip positions—fully exiting UnitedHealth, cutting roughly $8 billion of Chevron, and dropping stakes in Domino's, Visa, Mastercard, and Amazon, while tripling Berkshire's Alphabet holding to about 58 million shares (roughly $16.6 billion as of March 31, 2026).
- A possible strategic shift, with open questions. The article frames these moves as a tilt away from slower-growth defensive sectors (energy, healthcare) and payment processors toward higher-momentum growth names like Alphabet. The key uncertainty it raises is whether Abel will maintain Buffett's long-standing discipline of only buying quality companies at reasonable prices, and how M&A decisions will be made going forward.
Mon, Jun 1
3 min
SGFX research desk
Berkshire Hathaway to acquire Taylor Morrison for $6.8 billion under new CEO Greg Abel
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Investment conglomerate Berkshire Hathaway has agreed to acquire Taylor Morrison for a total of $6.8 billion ($8.5 billion in enterprise value). Berkshire Hathaway’s new CEO Greg Abel has carried out a slew of portfolio adjustments, slashing investments in certain companies and doubling down on others.
The update marks the first major acquisition announcement since Greg Abel entered into his leadership role.
For 60 years, Warren Buffett has advocated a value-investing policy that focused on securing good companies but only at reasonable prices.
Acquisitions for the company have been slow, and Buffett has acknowledged this in the past, often referring to a lack of good deals in the market as the main reason.
Going forward, investors have yet to price in what they think the company will be worth in the future. But growth depends on a few crucial factors:
- Will management continue to uphold the policy of only buying stocks and opening positions at reasonable prices?
- How will the decision-making process be taken forward when it comes to M&A deals?
Sector wise, Berkshire Hathaway has been shying away from some sectors and leaning into others. For instance, the company completely exited its stake in United HealthCare, selling its entire investments totaling 5.1 million shares over a quarter. Other exits included Domino’s, Visa, MasterCard, and Amazon. (Source: Berkshire Hathaway’s 13F filing)
Capital flows went more towards Alphabet, in which Hathaway tripled its investment stake to 58 million shares, valued at $16.6 billion as of March 31st, 2026. Another sector from which Berkshire Hathaway was noted to be moving away from was the energy sector. (Source: Berkshire Hathaway’s 13F filing) Berkshire Hathaway liquidated a portion of its position in Chevron, selling about $8 billion worth of its investment, according to TradingKey. Despite the trim, Berkshire Hathaway’s position in the company is one of the largest in its portfolio.
Summary
What we’re seeing here is a refocusing of Berkshire Hathaway’s portfolio. Investments are moving away from sectors such as energy and healthcare—which are mostly defensive in nature and not growth-oriented—towards high-momentum companies such as Alphabet.
The company has also pulled back from blue-chip payment processors, indicating a shift in investment preferences. SGFX’s research desk believes results of this allocation will depend on how Alphabet fares over the long term, provided Berkshire Hathaway does not trim its position or divest.
Research references
- Warren Buffett's Successor, Greg Abel, Just Sold UnitedHealth Group Stock. Is He Missing a Huge Opportunity? | The Motley Fool (Published May 27th, 2026)
- Berkshire Exit Puts Spotlight On UnitedHealth Risks Rewards And Valuation (Published May 29th, 2026)
- Berkshire Hathaway to Buy Taylor Morrison for $6.8 Billion - Bloomberg (Published 1st June, 2026)
- Buffett Successor’s Debut: Cuts Chevron Stake, $8.5 Billion Taylor Morrison Acquisition (Published 1st June, 2026)
Disclaimer: This article reflects the views and analysis of the author at the time of publication and is based on information believed to be reliable from publicly available sources. Spectra Global makes no representation or warranty, express or implied, as to the accuracy, completeness, or timeliness of the information contained herein, and accepts no liability for any loss arising from reliance on it. Spectra Global is licensed by the UAE Securities and Commodities Authority (SCA) under Category 5 (Promotion). Nothing in this article should be construed as a personal recommendation or as an inducement to enter into any transaction. Past performance is not indicative of future results.
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