Berkshire CEO Greg Abel Is Sitting on Nearly $400 Billion in Cash. Here's How His Deal-Making Approach Differs From Warren Buffett's.
Berkshire Hathaway's new CEO has the firepower to make big deals, and his first deal reveals how he's likely to approach acquisitions.
Overview
Warren Buffett handed over the CEO reins of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) to Greg Abel at the start of 2026. Buffett gave his successor a big welcome gift: nearly $400 billion in cash on the company's balance sheet. That number was down to around $365 billion by the end of the second quarter, as some of it was allocated to public stocks. But Abel did make one notable acquisition: Taylor Morrison Home.
In the grand scheme of things, the roughly $8.5 billion Berkshire Hathaway spent to buy Taylor Morrison Home was modest. For comparison, the company added $17 billion to its investment in Alphabet (NASDAQ: GOOG), the parent of Google, a publicly traded company. But the acquisition of Taylor Morrison Home is a far more telling move regarding how Greg Abel will manage the company. And it hints at an important change from the way Warren Buffett did things.
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Originally published at www.fool.com.
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