This Questionable Berkshire Hathaway Holding Actually Makes Sense
The struggling stock's underlying business isn't quite in the dire straits most investors seem to think it is.
Investors generally view the majority of Berkshire Hathaway's stock holdings as sound investments. However, a recent acquisition of 3 million shares of Macy's department store chain has sparked some controversy. This stance is due to Macy's struggling financial situation and the potential value locked in its real estate portfolio, which may surpass the company's current market cap of nearly $6 billion.
To access this value, Macy's would have to wind down certain retail operations, potentially damaging the worth of its real estate assets in the process.
Berkshire Hathaway's stake in Macy's, now standing at 7.4 million shares or $162 million, might not necessarily be a real estate bet. Instead, it could potentially represent a turnaround opportunity.
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