Berkshire Commits $16.8B to Taylor Morrison and Alphabet AI Development
BRKA•Berkshire Hathaway has deployed $6.8 billion to acquire Taylor Morrison Home at roughly 12× next-year earnings and invested $10 billion in Alphabet to support AI development, bringing its Alphabet stake to $27 billion. Under Greg Abel, Berkshire’s $400 billion cash hoard may fuel more platform and technology investments.
1. Taylor Morrison Acquisition
Berkshire Hathaway agreed to purchase Taylor Morrison Home for $6.8 billion in cash at about 12 times next year’s earnings. The homebuilder reported a 13% return on equity and 23% gross margin last year, and Berkshire plans to integrate it into its existing site-built homebuilding platform.
2. Alphabet AI Investment
Berkshire added $10 billion to its existing $17 billion Alphabet stake to support the company’s artificial intelligence initiatives. At 25 times forward earnings and with gross margins above 50%, Alphabet offers exposure to high-margin technology growth.
3. Strategic Shift Under Greg Abel
Under new leader Greg Abel, Berkshire is signaling a broader capital-allocation strategy that embraces platform synergies and technology exposure. With a cash reserve of nearly $400 billion, the company appears poised to pursue larger, integration-focused deals beyond traditional value acquisitions.
