Berkshire Hathaway is deploying its vast cash reserves.

Synopsis Berkshire Hathaway is deploying its vast cash reserves. Greg Abel has committed $16.8 billion in two days. This includes a $10 billion investment in Alphabet and the acquisition of Taylor Morrison Home Corp for $6.8 billion. These moves signal a shift in capital allocation strategy. Investors have urged for more deployment of cash. The company holds significant cash reserves. Greg Abel appears to be making an early mark on Berkshire Hathaway's capital allocation strategy, committing a combined $16.8 billion within two days through a major investment in Alphabet and the acquisition of homebuilder Taylor Morrison Home Corp. According to Reuters, the twin deals may help address a long-standing concern among Berkshire investors who have urged the company to deploy more of its vast cash reserves. Berkshire held cash and short-term investments worth $380.2 billion as of March 31, a figure that many shareholders and analysts have viewed as a drag on the conglomerate's stock performance. Since reaching a record high in May 2025, Berkshire Hathaway shares have declined about 13%, while the technology-focused S&P 500 index has gained roughly 34% during the same period. The larger of the two transactions is Berkshire's agreement to invest $10 billion in Alphabet, Google's parent company, through a private placement. The investment forms part of Alphabet's $80 billion equity fundraising programme aimed at supporting its artificial intelligence expansion plans. The move underscores Berkshire's growing confidence in Alphabet's AI ambitions and strengthens a position it only began building in the third quarter of last year. As of March 31, Berkshire held Alphabet shares worth $16.6 billion. With the latest investment, Alphabet is expected to become one of Berkshire's five largest equity holdings, alongside long-time investments such as Apple. Live Events The investment also highlights a notable shift from Warren Buffett's historically cautious approach toward technology stocks. While Buffett ultimately made Apple one of Berkshire's most successful investments, he had long avoided many technology companies, preferring businesses he considered easier to understand and value. In a separate transaction announced on Sunday, Berkshire agreed to acquire Taylor Morrison Home Corp for approximately $6.8 billion. The deal expands Berkshire's already significant presence in the U.S. housing market. The conglomerate's housing-related operations include manufactured-home builder Clayton Homes as well as businesses supplying building materials such as bricks, paint and insulation. Berkshire also owns one of the largest residential real estate brokerage networks in the United States. The acquisition comes as Berkshire seeks opportunities to put capital to work while maintaining its long-standing policy of preserving a substantial cash buffer. The company has previously indicated that it intends to retain at least $30 billion in cash at all times. Investors have frequently debated whether Berkshire should return more capital to shareholders through larger stock buybacks or introduce its first dividend since 1967. However, the latest deals suggest management is prioritising acquisitions and strategic investments over direct shareholder payouts. Under Abel's leadership, Berkshire remains a sprawling conglomerate with businesses spanning railroads, energy, manufacturing, insurance and retail. Its portfolio includes BNSF Railway, a broad collection of industrial and energy assets, and consumer brands such as Dairy Queen, Fruit of the Loom and See's Candies. The recent transactions offer one of the clearest indications yet of how Abel intends to deploy Berkshire's enormous financial resources and shape the company's next chapter after Buffett's decades-long tenure, Reuters said in the report. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless Why Indian manufacturers may want the rupee to hit 100 Different eras, but current rupee slide has elements of 1991 crisis Can a Rajan-style NRI dollar-deposit scheme save the rupee? Iran war impact: Oil prices may be just one among many to pinch you As West Asia boils, will Dubai’s loss be a GIFT for India? Stock Radar: After a 24% correction, Max Healthcare breaks key resistance level; analysts see long-term potential 1 2 3

China's wholesale prices rose at the fastest pace in nearly four years in May.

Trump Media & Technology Group (DJT) has drawn fresh attention after recent share price swings.

On June 9, 2026, the tech-heavy Nasdaq Composite plunged 2.17%, losing more than 560 points as AI and semiconductor stocks extended their sell-off.