Berkshire Hathaway Just Dumped a Beloved Stock. Here's What It's Buying Instead.
Key Points
Berkshire Hathaway sold its remaining Amazon shares.
At the same time, it initiated a position in Macy's.
The retailer has been investing in its long-term growth.
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Warren Buffett stepped down as Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) CEO at the end of 2025, but remains chairman. While Greg Abel has stepped in as CEO, Buffett remains involved in the investment decisions.
Still, in CEO Abel's first quarter at the helm, there were some notable changes to Berkshire's portfolio. Let's take a closer look at these moves.
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Notable transactions
Berkshire Hathaway no longer held any Amazon (NASDAQ: AMZN) shares as of March 31. The company owned 10 million shares as of Sept. 30, 2025, and had brought that down to under 2.3 million at year-end.
While the company exited its Amazon position, it bought Macy's (NYSE: M) during the first quarter. Berkshire Hathaway, which previously owned no shares in the retailer, purchased nearly 1.7 million shares during the period. These had a value of $30.1 million as of March 31.
Amazon's stock has certainly rewarded investors over the years -- and in 2026 as well. Year to date through May 14, the shares had gained 14.4%, easily outpacing the S&P 500 index's 8.7% return. Management continues to invest heavily in long-term growth initiatives. For patient investors, this could pay off, particularly since Amazon's shares trade at a reasonable price-to-earnings (P/E) ratio of 32, in line with the S&P 500's multiple.
However, Macy's seems to have greater upside potential based on the stock's attractive valuation. Management has been executing on its plan to grow sales, including a focus on higher-income consumers. Fiscal fourth-quarter same-store sales grew 2%, covering the period that ended on Jan. 31.
Its shares have dropped 16.5% this year, but that's likely due to broader economic concerns, including those stemming from the economic fallout from the Iran war, such as the spike in gas prices squeezing consumer spending. The price drop has resulted in a tempting valuation, with the P/E ratio falling from 13 to 8.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway. The Motley Fool has a disclosure policy.
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