Greg Abel's Berkshire Hathaway Bets Big on Housing as Its Stock Strings Together a Rare Winning Streak

For decades, investors watched Warren Buffett's every move. In 2026, the spotlight is on his successor. Greg Abel, who became chief executive of Berkshire Hathaway on Jan. 1, is putting the company's huge cash pile to work, and Wall Street is paying attention.

A rare winning streak

Berkshire's Class A shares were on track for a 10th straight day of gains on Oct. 14, 2026, the first streak that long since January 2018, CNBC reported. The shares touched an intraday high of $786,000 on Oct. 13, a level not seen since Aug. 11, and have gained more than 5% since the streak began.

Analysts noted that Berkshire's large cash position benefits from higher short-term interest rates. The 2-year Treasury yield has pulled back to around 4.80% after peaking near 4.9% in late September.

The big bet: American homes

Abel's most striking move has been in housing. In late May, Berkshire agreed to buy Taylor Morrison, the nation's sixth-largest homebuilder, for $6.8 billion in stock value, or about $8.5 billion including debt. The deal closed in July, according to Fortune.

Then, in the third quarter, Berkshire nearly doubled its stake in Lennar, the country's second-largest homebuilder, raising its holdings by 94% after a roughly 30% increase in the second quarter. Berkshire now owns about 11% of Lennar.

Berkshire also already owns Clayton Homes, and its Mungo Homes unit bought South Carolina builder McGuinn Homes in July.

Abel told CNBC's "Squawk Box" on Sept. 2 that the Taylor Morrison purchase reflects a long-term view that "the American dream will continue to exist."

Other new investments

Berkshire also invested $330 million in Bending Spoons, the Italian company behind apps like Evernote, following a $600 million investment in July. It's a sign that Abel is willing to look beyond the traditional businesses Berkshire is known for.

Why Berkshire has so much cash to invest

Berkshire Hathaway's investing power comes largely from insurance. Its insurance businesses, including GEICO and various reinsurance operations, collect premiums upfront and pay out claims later, sometimes years later. In the meantime, Berkshire gets to invest that money, a pool of funds known as "float." Warren Buffett built much of Berkshire's long-term returns by investing float patiently, and that same model now gives Greg Abel the resources to make large bets like the Taylor Morrison and Lennar purchases.

Buffett announced in 2021 that Abel, who had run Berkshire's non-insurance operations, would eventually succeed him as CEO, a transition widely seen as one of the most closely watched handoffs in corporate America given how closely Berkshire's identity has been tied to Buffett personally for six decades.

Why Berkshire has two share classes

Berkshire created its lower-priced Class B shares in 1996, partly to stop outside firms from packaging the stock into funds without Berkshire's involvement, and split them further in 2010 to help fund its purchase of railroad Burlington Northern Santa Fe. The split made it possible for everyday investors to own a piece of Berkshire for a few hundred dollars rather than needing hundreds of thousands for a single Class A share.

What it means for you

Berkshire has long been popular with older investors who value steady, conservative management. A few things to keep in mind:

• Class B shares (BRK.B) trade at a small fraction of the Class A price, making them far easier to buy.
• Berkshire doesn't pay a dividend, so it suits investors seeking long-term growth rather than income.
• A big housing bet adds exposure to mortgage rates and the economy.
• If you own an S&P 500 index fund, you already own some Berkshire.

The bottom line

Greg Abel's first year shows a leader willing to make large, patient bets, with American housing at the center. Whether those bets pay off will take years to judge, which is exactly how Berkshire has always asked shareholders to think.

Sources: CNBC (Oct. 14, 2026), Fortune (Oct. 15, 2026), Realtor.com (Oct. 9, 2026), The Motley Fool (Oct. 13–14, 2026)