Berkshire Hathaway under new CEO Greg Abel is shifting toward direct ownership of operating businesses and technology investments, including a Taylor Morrison home-building acquisition and increased stake in Alphabet.

What happened

Berkshire Hathaway has agreed to acquire Taylor Morrison Home and made a large investment in Alphabet. These moves signal a change in how the company deploys capital under CEO Greg Abel, moving beyond its traditional reliance on a large stock portfolio.

Why it matters

Berkshire sits at the center of many investor portfolios and serves as a reference point for long-term compounding. The shift toward direct control of operating businesses and technology platforms—rather than passive stock holdings—could materially reshape how the company's earnings mix and returns evolve over time.

What to watch

Analysts currently expect Berkshire's earnings to decline by an average of 2.4% per year over the next 3 years. Monitor whether the new housing and Alphabet investments offset that pressure, and how the group's price-to-earnings ratio of 14.5x compares with the Diversified Financial industry average of 15.1x as these moves take effect.