Berkshire Hathaway (BRK-B) Starts Spending Its Cash, but Is 24 Times Earnings Fair?

Berkshire Hathaway (NYSE:BRK-B) will soon report its first quarter that includes Taylor Morrison, the homebuilder it agreed to buy for about $6.8 billion in cash. The deal closed in late July, which puts it in the September quarter. It is the clearest sign yet that Greg Abel, who runs the company after Warren Buffett's retirement as chief executive, is willing to spend the cash Buffett left behind. But spending is only half the question. The other half is the price. Berkshire's stock trades at a steep premium to its sector, and the profit that slipped last quarter came from insurance, the business Berkshire is best known for.