How Berkshire Buys a Home Builder at Book Value

In this episode of The Value Investing Podcast, Lucas and Luna break down Berkshire Hathaway's $6.8 billion acquisition of Taylor Morrison, announced on June 1, 2026. They examine why this home builder trades at barely 0.9 times book value, how the housing market's structural supply shortage creates a durable moat, and what it tells us about Warren Buffett's playbook in a flat-rate environment. With Berkshire shares down 2.4 percent in the past week, the hosts question whether the market is mispricing the conglomerate's latest bet. Specific numbers include the deal's price-to-book ratio, the average age of US housing stock at 40 years, and the Fed funds rate stuck at 3.62 percent. A tight 10-minute value investing case study on cyclical bargains and capital allocation. #BerkshireHathaway #TaylorMorrison #HomeBuilders #ValueInvesting #WarrenBuffett #BookValue #HousingMarket #CapitalAllocation #MoatInvesting #CyclicalStocks #FlatRateEnvironment #June2026 #FexingoBusiness #BusinessPodcast #Finance #StockMarket #MergersAndAcquisitions #SupplyShortage Keep every episode free: buymeacoffee.com/fexingo