Berkshire Is Betting on This Legacy Retail Stock

Berkshire Hathaway has invested in Macy's for the first time in six decades, building a 2.8% stake worth approximately $174 million. The investment comes as Macy's executes a turnaround strategy, closing underperforming stores while upgrading others, and posted strong Q1 results with revenue growth and significantly higher earnings. Despite analyst skepticism with an average price target below current levels, Berkshire appears attracted to the retailer's valuation at roughly 10 times trailing earnings.