Berkshire Hathaway reveals $55M stake in Macy’s after Buffett’s hint

Berkshire Hathaway, the conglomerate synonymous with Warren Buffett’s value investing philosophy, disclosed a new $55 million position in Macy’s Inc. in its latest quarterly filing. The stake, representing roughly 3 million shares, showed up in Berkshire’s 13F filing for the first quarter.

Macy’s stock jumped about 5.9% in after-hours trading once the disclosure hit.

What Berkshire actually bought

For Berkshire Hathaway, a $55 million position represents roughly 0.02% of its total equity portfolio, which exceeds $300 billion.

The roughly 3 million shares give Berkshire a modest foothold in the retailer without anything close to a controlling interest.

Why Macy’s, and why now

Macy’s has been in the middle of a restructuring campaign aimed at trimming costs, shuttering underperforming locations, and squeezing more value out of its real estate portfolio.

Macy’s owns or holds long-term leases on prime commercial real estate in major US cities. Its flagship Herald Square location in Manhattan alone sits on some of the most valuable dirt in the world.

Berkshire’s entry suggests someone at the conglomerate ran the numbers and decided the market was underpricing what Macy’s actually owns. At Berkshire’s scale, positions under a few hundred million are often managed by the lieutenants rather than the boss — Ted Weschler or Todd Combs — rather than Buffett himself.

The Buffett signal effect

The after-hours pop of nearly 6% in Macy’s stock followed the 13F disclosure. Berkshire took losses on airline stocks during the pandemic and has occasionally trimmed positions at inopportune times.

What this means for investors

The 13F filing reflects positions as of the end of Q1, which means weeks have already passed since the shares were purchased. The after-hours price jump means anyone buying now is already paying a premium over what Berkshire paid.

A $55 million position that goes to zero would barely register on Berkshire’s income statement. For an individual investor concentrating a meaningful percentage of their portfolio in Macy’s, the calculus is entirely different.

Macy’s is competing not just with e-commerce giants but with off-price retailers like TJX Companies and Ross Stores. What’s worth watching is whether Berkshire adds to the position in subsequent quarters, as the next 13F filing will reflect whether the stake grows, holds flat, or shrinks.