New York, June 13, 2026, 12:04 ET
- Berkshire Hathaway Class B ended Friday at $489.25, gaining 0.71%. The S&P 500 added 0.50%.
- Taylor Morrison’s planned acquisition advanced toward a shareholder vote after a preliminary proxy was filed on June 12.
- The stock trades at a fair to somewhat appealing level, but it’s not cheap. Valuation support is weighed against capital allocation and housing cycle risks.
Berkshire Hathaway Inc. shares closed out the week up, with the Class B stock finishing Friday at $489.25, a 0.71% gain. Shares moved between $484.51 and $489.99 during the session, with 4.59 million shares traded. That was just ahead of the S&P 500, which added 0.50% on the day.
Taylor Morrison Home put out a preliminary proxy on June 12, asking investors to back Berkshire’s planned all-cash buyout. The filing states Taylor Morrison shareholders would get $72.50 per share, about 24% over where the stock closed on May 29. The deal needs a majority of outstanding shares entitled to vote.
Berkshire’s stock is in focus as investors look to the Taylor Morrison deal, the first big move under CEO Greg Abel. Berkshire is paying an $8.5 billion enterprise value to acquire the homebuilder, which would be absorbed as a full Berkshire subsidiary if the deal goes through. Abel said the company will look to “unify our site-built homebuilding operations into a combined platform” over time. Reuters
The Taylor Morrison deal won’t shift Berkshire on its own, but it may show investors the company is ready to use some of its $380.2 billion cash pile. That number excludes unsettled Treasury bill buys as of the end of March. The deal would tap just a fraction of Berkshire’s available cash. UBS analyst John Lovallo described it as “a strong vote of confidence in the mid-long term outlook for the homebuilding industry,” Reuters reported. Reuters
Bulls say Berkshire is still a mix of cash-heavy businesses across insurance, rail, energy, manufacturing, services and retail, giving it room to ride out soft spots anywhere. First-quarter operating earnings, which cut out investment swings and focus on core profit, rose to $11.35 billion, up from $9.64 billion last year. Morningstar kept its $510 fair value call on the Class B stock, above where shares finished on Friday.
The bear camp points out the stock isn’t obviously cheap. Berkshire’s move into housing increases its cyclical risk while consumers are still feeling the squeeze. The company said economic uncertainty hurt some consumer-facing units. Reuters said Geico’s pre-tax underwriting profit dropped 35% as accident claims and marketing costs climbed. Price-to-book was around 1.45, which means investors are still paying up for Berkshire’s balance sheet and reputation.
Berkshire is trading at what looks like a fair to slightly attractive level — not expensive if you’re speculating, but also not a deep bargain. Next up is the Taylor Morrison approval process. That includes a shareholder vote and antitrust review. Then Berkshire’s next quarterly report comes out. Investors will be watching for buybacks, cash on hand, and signs Abel is putting capital to work while keeping Berkshire’s conservative stance intact.
