‘American dream will continue to exist’: Warren Buffett’s successor is betting big on U.S. housing
Source: Fortune ·
Berkshire Hathaway CEO Greg Abel has made three big homebuilding moves since taking over from Buffett, even as he concedes there’s no “quick recovery” coming for the housing market.
From the source
Berkshire Hathaway is doubling down on U.S. homebuilders, even as the housing market struggles to find its footing. Since Greg Abel succeeded Warren Buffett as CEO on Jan. 1, Berkshire has made three major moves in homebuilding. In late May, it agreed to acquire Taylor Morrison, the nation’s sixth-largest homebuilder, in a cash deal worth $6.8 billion in equity and about $8.5 billion including debt. The deal closed in July. In early July, Mungo Homes, part of Berkshire’s Clayton Properties Group, acquired South Carolina builder McGuinn Homes. And in the third quarter, Berkshire nearly doubled its position in Lennar, America’s second-largest homebuilder. It increased its holdings by 94%, according to calculations by housing research firm ResiClub, on top of a stake that had already grown nearly 30% in the second quarter. Berkshire now owns roughly 11% of Lennar, according to SEC filings. Abel told CNBC’s Squawk Box on Sept. 2 that the Taylor Morrison deal reflected a long-term view of…