Berkshire Hathaway’s multibillion-dollar buy of Taylor Morrison to boost US housing market

While Chinese investors are turning away from America, the conglomerate’s US$6.8 billion cash acquisition could encourage more home sales The US-based conglomerate made the investment in May, deepening its bet on the US residential property market. It marked the first multibillion-dollar acquisition under CEO and president Greg Abel, who was appointed to his current post in January after chairman Warren Buffett stepped down from his post overseeing the group’s operation. “Will other institutional investors follow the lead? Yes, undoubtedly,” Ansari said. “People who follow the housing industry see consolidation in the works. That means smaller companies are being bought up, all other things being equal, bigger ones. “Ultimately, there will be fewer American housing companies out there, and they will have bigger balance sheets.”

Read the full article at the source →