Warren Buffett Praises New CEO Greg Abel as Berkshire Hathaway Makes Major Acquisition and Bets $10 Billion on Alphabet AI Infrastructure

Aditya Raghunath4 minute read
Reviewed by: Thomas Richmond
Last updated Jun 8, 2026

Key Stats for Berkshire Hathaway Stock

  • Price change for Berkshire Hathaway stock: 2%
  • $BRK.A Share Price as of Jun. 5: $733,550
  • 52-Week High: $775,000
  • $BRK.A Stock Price Target: $758,899

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What Happened?

Berkshire Hathaway (BRK.A) stock has been in the spotlight this week as new CEO Greg Abel deployed nearly $17 billion in under 48 hours.

  • Abel agreed to acquire homebuilder Taylor Morrison for $6.8 billion in cash, a 24% premium to the stock’s previous closing price, and
  • Then invested $10 billion in Alphabet to help fund the company’s AI infrastructure buildout.

Warren Buffett didn’t hold back in his praise.

  • He told CNBC that Abel did the Taylor Morrison deal “faster than I could have done it, smoother than I could have done it,” and simply said: “He has launched.”
  • The deal was completed after Abel flew to Arizona, spent five hours with Taylor Morrison CEO Sheryl Palmer, and then waited a few days before she called back with board approval.
  • He consulted with Buffett and lead director Sue Decker — but didn’t tell the rest of the board until the deal was done.
  • That, as Becky Quick noted, is “the Berkshire way.”
BRK.A Stock Revenue, EBT and Free Cash Flow Estimates in Billion USD (TIKR)

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What the Market Is Telling Us About Berkshire Hathaway Stock

These two deals together say a lot about where Abel is taking Berkshire.

  • The Taylor Morrison acquisition is a notable departure from Berkshire’s long-standing hands-off approach, with Abel signaling he plans to consolidate site-built homebuilding operations with Clayton Homes to build a national platform.
  • UBS analysts say a combined Taylor Morrison and Clayton would become one of the country’s five largest homebuilders, operating in a housing market short by roughly 7 million homes.

The Alphabet bet is just as striking.

  • Abel had already tripled Berkshire’s Alphabet stake earlier in 2026, and the new $10 billion investment bought shares at a 5% to 6.5% discount to market.
  • Buffett spent decades avoiding tech stocks, saying he couldn’t reliably predict long-term winners.
  • Abel is making no such hesitation. Once the new shares are added, Alphabet will likely become Berkshire’s third or fourth largest equity holding, rivaling its long-held Coca-Cola stake.

Berkshire Hathaway stock has long been seen as a steady, all-weather investment. Abel’s first week suggests it is evolving quickly into something more ambitious.

Berkshire Hathaway stock now offers investors exposure to AI infrastructure, housing, insurance, and one of the largest corporate cash reserves on earth.

BRK.A Stock Valuation Model (TIKR)

Berkshire Hathaway stock slipped about 1% on the initial Taylor Morrison announcement but has since recovered. The deals are bold, well-priced, and backed by Buffett’s full confidence in Abel’s judgment.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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