The Buffett Effect: Is Macy's the Underrated Value Bargain of the Year?

Berkshire Hathaway Entry as a Market Signal Berkshire Hathaway has reportedly entered into the department store chain Macy's (M) in the first quarter, according to recent mandatory disclosures. The holding company invested approximately 55 million USD and acquired over 3 million shares. This represents a stake of 1.1% in the retailer. For Berkshire, this is the first direct engagement in the traditional department store sector since 1966. Apparently, Berkshire considers the current undervaluation of the stock, which is trading at a price-to-earnings...