With Greg Abel establishing his own investment style after taking the helm, Berkshire Hathaway (NYSE: BRK.A) has committed a total of $16.8 billion across two major deals in as many days. The moves include acquiring homebuilder Taylor Morrison and increasing its stake in Alphabet, focusing on its artificial intelligence business. These significant investments address long-standing calls from investors.

Since succeeding Warren Buffett as CEO earlier this year, investors have been eager for Abel to put the conglomerate's massive cash pile to work. As of March 31, Berkshire held a staggering $380.2 billion in cash. Many investors and analysts believe this idle capital has weighed on the investment giant's stock performance. Since hitting a record high in May 2025, Berkshire's share price has fallen approximately 13%, while the S&P 500, with its heavy weighting in technology stocks, has risen 34% over the same period.

Steven Check, president of Check Capital Management, which oversees $2.4 billion in assets including over $700 million in Berkshire stock and options, commented, "Everyone has been waiting for Greg to step out on his own, out from under Warren Buffett's shadow. And we are seeing that now. It's encouraging."

Committing $10 Billion More to Google Parent Alphabet

On Monday, Berkshire finalized an agreement to purchase $10 billion worth of Alphabet shares in a private placement, part of the tech giant's $80 billion equity financing plan. This increased investment underscores Berkshire's confidence in Alphabet's leading position within the artificial intelligence sector.

Berkshire initially established a position in Alphabet in the third quarter of last year. By the end of March, that holding was valued at $16.6 billion. Following this latest investment, Alphabet is poised to become one of Berkshire's top five equity holdings, though Apple remains its largest.

This deal offers an early glimpse into Abel's capital allocation strategy, showing his willingness to make substantial bets on technology companies despite sitting on nearly $400 billion in cash. It marks a shift in Berkshire's investment rationale, as the group has historically favored businesses with more stable earnings. Buffett himself had previously characterized Berkshire's investment in Apple as a bet on consumer products.

At the 2019 Berkshire annual meeting, Buffett and the late Vice Chairman Charlie Mungger admitted they had missed an opportunity to invest in Google earlier. Buffett noted that Google's advertising model was quite similar to that of Berkshire's Geico auto insurance unit. Munger stated bluntly, "We screwed up." Buffett agreed, adding, "We just missed it." Buffett continues to serve as Berkshire's Chairman.

Acquiring Nation's Sixth-Largest Public Homebuilder for $6.8 Billion

On Sunday, Berkshire disclosed its $6.8 billion deal to acquire Taylor Morrison, a homebuilder operating in 12 states across the U.S. This acquisition will further expand Berkshire's extensive footprint in the housing sector. The company already owns manufactured home builder Clayton Homes, has investments in building material suppliers for products like bricks, paint, and insulation, and operates one of the nation's largest residential real estate brokerage platforms.

The news of Berkshire's move to acquire Taylor Morrison sent ripples through the market, coming at a time when the U.S. housing sector has been under pressure. Industry observers widely view the transaction as not only surprising but also a potential signal that the U.S. housing market may be nearing a cyclical bottom.

Margaret Whelan, founder and CEO of Whelan Advisory, which specializes in real estate M&A consulting, noted that experienced investors like Berkshire do not rush to buy when a market is still in decline. "It says that a very sophisticated buyer thinks valuations have bottomed," she said.

Despite Berkshire's commitment to maintaining a $30 billion cash cushion, investors believe the company could consider more aggressive stock buybacks or even introduce its first dividend since 1967. The sprawling conglomerate, which owns dozens of operating businesses often seen as a microcosm of the U.S. economy, spans BNSF Railway, several energy and industrial companies, and consumer brands like Dairy Queen, Fruit of the Loom, and See's Candies.