Greg Abel Is Spending Berkshire Hathaway's Cash on Whole Companies Instead of Stocks. Here's What That Changes for Shareholders.

Greg Abel, Berkshire Hathaway's new CEO, is shifting the company's investment strategy toward acquiring whole businesses rather than stocks. With nearly $400 billion in cash, Abel has spent less than $3 billion on stock purchases while acquiring Taylor Morrison for $6.8 billion and completing the OxyChem purchase for $9.7 billion. This approach reflects Abel's preference for long-term operational control over portfolio trading, as he finds greater value in whole companies than in the current richly-valued stock market.