realestate

Berkshire Hathaway to Unload Real Estate Division in Rare Transaction

Warren Buffett's Berkshire Hathaway in talks to sell HomeServices of America to Compass.

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arren Buffett's Berkshire Hathaway is reportedly in talks to sell its real estate brokerage arm, HomeServices of America, to Compass. This move would be a rare departure from Berkshire's typical "buy and hold" strategy, as Buffett rarely sells major businesses.

    HomeServices has faced significant challenges, including a $107 million loss in 2024 due to a $250 million settlement related to lawsuits over commission fees. The unit is also grappling with rising legal risks and financial pressures.

    A sale of HomeServices could signal a shift in Berkshire's strategy under the expected leadership of new CEO Greg Abel. Offloading the unit would allow Berkshire to streamline its massive business portfolio and exit a volatile industry, focusing on steadier cash flow-generating businesses.

    Berkshire Hathaway's Class B stock currently has a Moderate Buy rating, with an average price target of $557 implying 10.46% upside from current levels.

Berkshire Hathaway CEO sells real estate division in rare corporate transaction globally.