Greg Abel Is Betting on Homebuilders Even as the Pending Home Sales Index Sits Near Its Second-Lowest Reading Ever, Down 36% Since 2021. Is Berkshire Early to a Housing Recovery, or Just Early?
Greg Abel's acquisition of Taylor Morrison Home wasn't about market timing; it was about building a better business.
Overview
Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) has undergone a massive leadership transition, with Greg Abel taking over as CEO from Warren Buffett. Abel is expected to be a more hands-on leader, actively participating in managing the company's vast portfolio of owned businesses. His first big acquisition hints at what he's looking to do. But don't read too much into the timing of the move.
Wall Street didn't have to wait long to see how Greg Abel would run Berkshire Hathaway. In May, roughly five months after he took the top job, Berkshire Hathaway announced that it had agreed to pay $6.8 billion to buy Taylor Morrison Home. Abel believed he was getting an attractive price, and Warren Buffett approved of his handling of the deal.
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Originally published at www.fool.com.
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