Berkshire Hathaway completed a $6.8 billion acquisition of Taylor Morrison and turned into a net buyer of equities in the second quarter. The conglomerate repurchased $4.5 billion of its own shares and purchased $11.6 billion in stocks during the first half of 2026, according to the company's earnings release.
Berkshire's net income more than doubled to $25.7 billion in the second quarter from $10.1 billion in the first quarter. The Taylor Morrison deal, completed in July, represents the company's largest acquisition since its $32.4 billion purchase of Precision Castparts in 2016. The homebuilder acquisition followed years in which Berkshire maintained a fortress balance sheet and held roughly $167 billion in cash and equivalents by early 2026.
New CEO Gregory Abel has faced investor questions about Berkshire's capital allocation strategy. The conglomerate held its cash reserves steady for years while the S&P 500 advanced. The Taylor Morrison purchase and the resumption of equity buying represent Abel's first major deployment of accumulated capital, moving the company from net seller to net buyer after a period of predominantly share repurchases.
Taylor Morrison ranks among the top 10 U.S. homebuilders by revenue. The acquisition adds residential construction assets at a time when housing demand remains constrained by mortgage rates at current levels. Berkshire has long held a stake in the housing sector through its National Indemnity and other insurance operations, which fund mortgage lending operations and title companies.
The $4.5 billion in share repurchases during Q2 topped the $2.6 billion the company bought back in the first quarter. Berkshire's stock has traded near intrinsic value in recent months, narrowing the discount to book value that historically made repurchases attractive. Berkshire bought back shares even as it deployed capital elsewhere, with the company's stock trading at current valuations.
Equity purchases of $11.6 billion in the first half of 2026 remain modest relative to Berkshire's cash position and annual earnings. The figure includes both new positions and additions to existing stakes. In prior years when Berkshire was a net seller, the company disposed of positions in airlines, banks and other sectors, citing uncertainty about long-term fundamentals.
Berkshire's quarterly profit surge also reflected strong performance from its insurance underwriting operations and investment gains. The company's float, or investable liabilities from insurance policies, grew during the quarter. Abel will face continued scrutiny on whether the pace of capital deployment accelerates or whether the Taylor Morrison deal and modest equity purchases represent a measured approach to reducing the cash pile.
