Berkshire Hathaway's Greg Abel Just Bought 3 Million Shares of Macy's Stock. It Sure Looks Cheap, but Is It a Great Value?
The retailer's stock checks boxes that are prized by Berkshire's managers.
Berkshire Hathaway's Greg Abel Just Bought 3 Million Shares of Macy's Stock. It Sure Looks Cheap, but Is It a Great Value?
Overview
Berkshire Hathaway's age of Greg Abel has begun. It can't be easy to take over after Warren Buffett's 60 years of building the company into the massive powerhouse it is today and cementing his legacy as one of the greatest investors ever, but Abel is diving right in. He had pledged to concentrate the stock portfolio into fewer high-conviction holdings, and he cut out about 16 small positions in his first quarter as CEO.
He did, however, also buy three new stocks, including department store retailer Macy's (NYSE: M). Macy's has been a public company for more than 30 years, and this is the first time Berkshire Hathaway has bought its stock. The retailer has been distressed as shopping habits change, and the stock trades at a P/E ratio of only 10. That's cheap, but is it a great value?
Image source: Macy's.
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Originally published at www.fool.com.
