Berkshire’s Delta and Macy’s Buys Leave Wall Street Guessing

CNBC reported Saturday that Berkshire Hathaway’s latest quarterly portfolio disclosure has raised more questions than it answered. Two new positions — Delta Air Lines and Macy’s — appeared in the filing. Neither addition fits neatly into known investment patterns at the firm.

A Portfolio Shrinks, but Two Names Appear

Berkshire’s first-quarter 13F SEC filing showed a significant reduction in total stock holdings. That much had been anticipated. The Wall Street Journal had previously noted that new CEO Greg Abel was expected to pare positions formerly overseen by Todd Combs, who departed late last year to join JPMorgan. What analysts did not expect were fresh entries. Delta Air Lines came in valued at roughly $2.6 billion as of March 31. Macy’s arrived far more modestly, at just $55 million. Both positions have since appreciated. Delta is now worth approximately $3.0 billion, a gain of about 14.5%. The Macy’s stake has moved to $63 million, up around 14%.

Buffett’s Complicated History With Airlines

The Delta purchase is particularly puzzling given the history. Warren Buffett famously quipped decades ago that a sensible investor should have ended aviation before it started. He backed US Airways in 1989 with poor results. He returned to airline stocks in 2016, then sold every position at a loss when the pandemic hit in 2020. Buffett himself confirmed to the Wall Street Journal that he played no role in the Delta decision this time. Barron’s analyst Andrew Bary suggested the Delta stake more likely belongs to Ted Weschler, Berkshire’s remaining portfolio manager. Weschler’s oversight responsibility expanded this year to roughly 6% of the portfolio, a threshold Bary noted aligns closely with the $2.6 billion position size.

A ‘Tiny’ Purchase and a Real Estate Angle

The Macy’s stake is generating its own speculation. In a March interview with CNBC’s Becky Quick, Buffett mentioned making one small new investment. He described it as “tiny.” CNBC noted the Macy’s position fits that description, though it could also refer to an international holding excluded from 13F requirements. Barron’s flagged Macy’s substantial real estate assets as a plausible draw for a value-oriented buyer. Buffett has shown real estate interest before, personally purchasing an 8% stake in Seritage Growth Properties in 2015.

Abel Takes the Wheel, Questions Remain

Abel now carries overall investment responsibility at Berkshire. The Delta and Macy’s positions suggest the transition is producing decisions that differ — at least stylistically — from the Buffett era. Whether that reflects Abel’s preferences or Weschler’s dealmaking remains unresolved. Markets, for now, are not complaining.

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