Berkshire Hathaway CEO Greg Abel has added Macy's to the conglomerate's portfolio with a $55 million investment, according to a recent regulatory filing.
The Q1 2026 13F filing revealed a new 3.04 million-share stake in the retail giant, purchased as Macy's stock fell 15.56% year-to-date to around $18 per share.
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Value Play in a Beaten-Down Stock
The investment follows Berkshire's classic value strategy, targeting gaps between market perception and underlying worth.
Berkshire now manages $263 billion in 13F securities, according to WhaleWisdom data.
Prior to the filing's disclosure, Macy's shares had lost about 17% of their value, compressing its price-to-earnings multiple to roughly 8 times—well below fair value estimates.
The depressed valuation reflects maximum pessimism for a company with 450 locations and 94,000 employees, generating $21.8 billion in annual revenue.
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Real Estate and Financial Strength
Macy's balance sheet shows resilience beneath the stock's decline.
The company ended fiscal 2025 with $1.2 billion in cash and equivalents, $1.4 billion in operating cash flow, and $800 million in free cash flow.
A key defensive asset is Macy's extensive real estate portfolio, owning or controlling premium locations in high-traffic U.
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S. markets.
Analysts note that the real estate's intrinsic value exceeds Macy's entire market capitalization, providing a safety net typical of value investments.
Operational updates indicate the retailer's turnaround strategy is gaining traction.
Macy's reported fiscal Q4 and full-year 2025 results on March 18, maintaining a quarterly dividend of 19.15 cents per share.
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The investment was disclosed on May 20, 2026, with a timestamp of 15:52.
