Is Berkshire Hathaway's Greg Abel Is Changing the Script? Here's the Latest Tech Stock He Just Bought.

That didn't take long. Greg Abel has been CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) since January, and since then he's made several big moves. He bought homebuilder Taylor Morrison in July, although that fits right into the company's standard formula and will be merged with its existing homebuilding operations.

He also presided over a major purchase of Alphabet stock, although the position was initiated by Warren Buffett, who was still the company's chairman at the time.

His latest move, though, is a further push into tech. Berkshire first bought shares of holding company Bending Spoons (NASDAQ: BSP) in its initial public offering (IPO) in July, and the company just bought an additional $330 million in shares, bringing its total stake to 4% of the company.

Is this where Berkshire Hathaway is heading?

Why Bending Spoons isn't your typical tech stock

CEO Luca Ferrari describes Bending Spoons as "25% private equity, 75% tech company." It's a holding company of sorts, just like Berkshire Hathaway, and it seems to be gaining Abel's admiration.

Berkshire Hathaway CEO Greg Abel. Image source: Getty Images.

Instead of acquiring distressed companies and fixing them up before reselling them or taking them public, as many private equity firms do, Bending Spoons acquires great tech companies that need improvement, identifies how to address their problems, helps them perform better, and then keeps them. The Milan-based company's brand portfolio includes Vimeo, Evernote, and AOL, among others, and it recently acquired Airtable.

Similar to Berkshire's recent expansion of its Alphabet holdings, the Bending Spoons position is a private placement, and the company issued 10 million shares to Berkshire at $33 per share. The stock traded at $47 before the announcement, and it jumped to $53 on Oct. 14, when it was announced.

Bending Spoons is a fast-growing tech stock

Abel has said in the past that he's not going to reinvent Berkshire Hathaway. His recent trades are all in line with the company's historical model, and the Bending Spoons position isn't all that different. Although Abel didn't comment on the deal, Bending Spoons' methodology, aside from its tech focus, would appeal to Abel. Berkshire Hathaway loves brand-name companies, although it usually spends its money on companies that have proven their worth, rather than fallen out of favor with their fans.

The company itself is growing fast. In the second quarter, revenue increased 126% to $311 million. However, growth was driven by new acquisitions, and it didn't disclose operating results for its individual brands. Operating income was up 139%, and operating margin improved from 32% to 34%.

Bending Spoons' model is supported by a large credit facility and high debt. It had $793 million in cash and equivalents at the end of the second quarter and $1.28 billion in available borrowing capacity, although it has since increased that. Its net debt was $4.09 billion, with a leverage ratio of 2.4. That's not the kind of cash-generating company Berkshire Hathaway usually invests in.

Is this a new direction for Berkshire Hathaway?

The market seemed happy with the news, and Berkshire Hathaway stock has been rising. Its performance year to date has been mediocre, up close to 6%, but it's up 3% over the past week alone.

Bending Spoons itself is based in Italy, but its companies are in the U.S., so it's still a bet on America. Buffett has said that "there remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others." Even under his leadership, the company made investments in Chinese, Japanese, and Latin American companies, and Abel sees opportunities outside the U.S. that could move the needle, too.

Although Berkshire Hathaway seeks to invest in long-term opportunities, it's quick to sell when needed. Some of its recent positions that didn't last very long include Ulta Beauty, Nu Holdings, and Floor & Decor Holdings. Bending Spoons is a riskier company than Berkshire's usual fare, and if it doesn't live up to expectations or Abel feels it's time to move on, it could disappear quickly.

More important for Berkshire Hathaway investors is that Abel appears willing to look beyond the company's traditional industries to move the needle, which bodes well for its future growth.

Jennifer Saibil has positions in Nu Holdings. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, Nu Holdings, and Ulta Beauty. The Motley Fool has a disclosure policy.