Greg Abel has only been CEO of Berkshire Hathaway (BRKA 0.22%)(BRKB 0.53%) for about five months, but he’s already making some big moves.
Over the weekend, Berkshire announced that it has agreed to acquire Taylor Morrison Homes (TMHC 0.04%) for $72.50 per share in cash, valuing the company at about $6.8 billion.
The deal represents a 24% premium to Taylor Homes’ closing price on Friday. The stock is up about 22.4%, as of 12:04 p.m. ET.
Warren Buffett, who stepped down as CEO at the end of last year but remains chair of Berkshire’s board of directors, was pleased with the deal.
“Greg did that faster than I could have done it, smoother than I could have done it, and I never talked to the CEO. He has launched,” he told CNBC.
Here’s what else investors need to know about Abel’s first major deal as CEO.
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Taylor Morrison Homes
Taylor Morrison is one of the leading homebuilders and land developers in the U.S.
The business is multifaceted. It operates in the home finance business, owning a mortgage subsidiary, a title insurance and closing settlement services arm, and a homeowners insurance unit.
Taylor Morrison also operates a “build-to-rent” business under the brand Yardly, in which it acquires land, develops and builds properties, and provides leasing and management services.
In 2025, the company completed nearly 13,000 home closings, generating $7.8 billion in revenue. The gross margin on these closings was 22.5%.
With interest rates high right now, most mortgage businesses are struggling, and Taylor Homes is no exception.
The company saw revenue plummet nearly 27% year over year in the first quarter of 2026, while diluted earnings also fell by over 50%.
Before the acquisition announcement, the stock was about flat for the year.
How the business fits into Berkshire
Berkshire has long operated in the housing sector.
The company already owns Berkshire Hathaway HomeServices, one of the biggest residential brokers in the country, as well as the homebuilder Clayton Homes, and other businesses in the space.
NYSE: BRKB
Key Data Points
"We are excited to welcome Taylor Morrison into Berkshire's portfolio, reflecting our long-standing commitment to housing, exemplified by Clayton Homes and our other building products businesses,” Abel said in a statement. “Over time, we expect to unify our site-built homebuilding operations into a combined platform enabling us to deliver the dream of homeownership to more Americans."
Interestingly, media outlets last year reported rumors that Berkshire was planning to sell its brokerage business. The housing market has become an extraordinarily difficult place to navigate, with not only high rates but also high home prices, putting homeownership out of reach for most.
But now Abel seems to be making a long-term commitment to the business.
While the housing sector has been difficult, it also has many attributes that the team at Berkshire is likely to find appealing.
The fact that Taylor Morrison owns land is likely attractive to Berkshire because land is finite.
Furthermore, the housing market would likely bounce back if interest rates fall. There is also a clear priority in the U.S. right now to start building more homes and expand inventory.
Many homebuilders failed during the Great Recession, so having a large home-building business would be advantageous if the country experiences a building boom.
Housing is also always going to be a necessity, so it is a business that will be around long-term.
