Did New Berkshire Hathaway Leadership Make a Costly Early Misstep
Mortgage rates are rising, making it harder for people to afford a home. The housing market has been stalled for quite some time, as affordability issues existed even before mortgage rates began rising. This is a terrible backdrop for homebuilders like Lennar (NYSE: LEN) . And yet, Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) , under new CEO Greg Abel, has been buying that stock, building its position to 10%, and it recently completed its $6.8 billion acquisition of Taylor Morrison Home. Is this a costly early misstep? Housing has long been a part of conglomerate Berkshire Hathaway's business. The company has a deep knowledge of the sector, which tends to be cyclical. The company's housing exposure was originally built under former CEO Warren Buffett. So Greg Abel isn't exactly charting his own course with his investments in home builders . Image source: Getty Images. Continue reading