Does Greg Abel Know Something Wall Street Doesn't? New Berkshire Hathaway CEO Doubles Down On a Legacy Department Store Stock With a 3.3% Dividend Yield

Berkshire Hathaway CEO Greg Abel more than doubled the conglomerate's position in M during Q2, a bet on the legacy department store chain that has outpaced the market over the past year. The stock has climbed 78% over the trailing twelve months and trades with a 3.3% dividend yield.

Macy's launched its turnaround strategy, "A Bold New Chapter," in 2024 and has since posted its strongest comparable sales growth in four years. Bloomingdale's, part of the M portfolio, achieved record growth during the same period. The retailer is generating strong free cash flow while trading at a low valuation relative to peers.

Abel's decision to increase BRK.B's stake substantially contrasts with broader institutional caution on brick-and-mortar retail. The move signals confidence in Macy's operational pivot and cash-generation capability, even as the department store sector remains out of favor with most growth-focused portfolios.