The New Berkshire Hathaway Just Made a Fresh Bet on a Department Store Everyone Wrote Off

4 hours ago 1

Omor Ibne Ehsan

Mon, June 22, 2026 astatine 12:15 PM CDT 4 min read

Quick Read

Greg Abel's archetypal Berkshire determination bought 3 cardinal Macy's shares for ~$55M, targeting a cash-generating retailer Wall Street had written off.
Abel paired Macy's with a caller Delta Air Lines stake, targeting cash-rich businesses with hard assets trading astatine prices that bespeak capitalist exhaustion, not collapse.
Macy's has surged 126% implicit the past year, and with tariff headwinds hitting margins and planned store closures, the introduction model for retail investors has closed.
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Berkshire Hathaway (NYSE:BRK.B) disclosed a brand-new 3.04 million-share involvement successful Macy's (NYSE:M) in its Q1 2026 13F filing, revealed connected May 15, 2026, the archetypal quarterly portfolio reshuffle nether Greg Abel's tenure arsenic CEO. The position, valued astatine $55 cardinal past quarter, lands successful Macy's alongside a caller involvement successful Delta Air Lines (NYSE:DAL). While each different money manager spent the 4th chasing AI infrastructure exposure, Abel's opening determination was a 166-year-old section store.

What Abel bought

The size is tiny by Berkshire standards, which is itself the tell. Buffett's known fingerprint is simply a tiny archetypal presumption that gets scaled if the thesis holds, and Barron's noted the size matches Buffett's emblematic starter bites adjacent arsenic CNBC flagged that the existent decision-maker, betwixt Buffett, Abel, and remaining portfolio manager Ted Weschler, is unclear.

The terms paid, however, is clear. Macy's traded astatine $10.67 a twelvemonth agone and the full equity could beryllium had for a marketplace headdress good nether $6 cardinal astatine the clip of purchase. Since the filing dropped, the banal has tally hard. Macy's is up 21% implicit the past period and 135% implicit the past year.

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The thesis hiding successful plain show

Macy's fits precisely due to the fact that it is simply a dependable currency generator alternatively than a turnaround pitch. The Q2 FY27 study filed June 3, 2026 showed adjusted diluted EPS of $0.13 against a $0.03 estimate, gross of $4.89 cardinal beating by 6.06%, and Bloomingdale's posting a 10.2% comp, its seventh consecutive 4th of gains. CEO Tony Spring raised full-year guidance to nett income of $21.5 cardinal to $21.75 cardinal and adjusted EPS of $2.00 to $2.20. So the banal trades astatine astir 12x guardant earnings, carries a 2.99% dividend yield, and sits connected a existent property portfolio whose worth has been litigated by activists for years. There is besides $1.1 cardinal remaining connected a $2.0 cardinal buyback authorization.

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