Berkshire deploys $16.8 billion across two days under new CEO Greg Abel
Berkshire Hathaway announced two large acquisitions worth $16.8 billion in two business days under new CEO Greg Abel. Home builder Taylor Morrison and a second still-unnamed target were acquired. Wall Street analysts said Abel's strategy 'to mobilise Buffett's cash pile' has begun.
Photo: Logan Merrick / PexelsNew Berkshire Hathaway chief executive Greg Abel has announced two large acquisitions in his first working week. According to Investing.com, the combined $16.8 billion across the two days covers $6.8 billion for housebuilder Taylor Morrison and roughly $10 billion for a second target whose identity has not yet been disclosed.
UBS analyst Brian Meredith wrote in a client note that 'Abel is breaking from Buffett-era passive cash accumulation and accelerating the sector-consolidation cycle'. Jamie Reuther of JPMorgan said that, given Berkshire's roughly $380 billion cash position, 'even at this pace, deployment could take 30 months'. Jay Gelb of Wells Fargo warned that 'the stock could come under pressure if valuation discipline is questioned'.
Berkshire Class B shares rose 1.4% on the New York exchange. The company said it would disclose financing details for the acquisitions in an upcoming 8-K filing. The disclosure noted it does not constitute investment advice.
More from North America
US private payrolls grew by 122,000 in May, stronger than expected, ADP reports
US private payrolls rose by 122,000 jobs in May, beating economists' expectations, according to the ADP report. The data suggests the labor market remains resilient as the Federal Reserve reassesses its interest-rate path.
SpaceX targets fixed $135 IPO price at $1.75 trillion valuation
Elon Musk's space company SpaceX is targeting a fixed $135 per share price during its IPO roadshow, sources told CNBC. The valuation would place the company at roughly $1.75 trillion, making it the largest technology listing in recent years.
US proposes fresh tariffs on 60 economies over forced labor
The Office of the US Trade Representative proposed fresh tariffs on 60 economies, including China, under Section 301. Greer said the actions target supply chains linked to forced labor.