Berkshire Hathaway’s Macy’s Stake Is Absurdly Cheap Beyond Its Low P/E Ratio

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Summary · why it matters

Berkshire Hathaway has been adding to its stake in Macy’s even while being a net seller of stocks, likely because the retailer is absurdly cheap on multiple metrics. Macy’s trades at a price-to-earnings ratio of 10, which fell as low as 7.5 in the first quarter of 2026, far below competitors like Walmart and Costco at over 40 times earnings and Target at 18 times. The company also owns up to an estimated $9 billion in real estate, well above its roughly $6.7 billion market cap, and pays a dividend yield of about 3% that it recently raised by 5%. Sales growth has turned positive, with first-quarter fiscal 2026 net sales rising and full-year comparable sales guidance lifted to a range of 0.5% to 1.2% growth. The combination of a discounted asset base, recovering sales, and a sustainable dividend makes Macy’s an overlooked bargain that may reflect the influence of Warren Buffett himself.