Why Did Berkshire Buy Delta and Macy’s? (7 words)

By VirentaNews Staff — May 24, 2026

Berkshire Hathaway’s latest 13F filing revealed a quiet but seismic shift in its investment strategy: the addition of Delta Air Lines and Macy’s to its public equity portfolio. For a firm long defined by Warren Buffett’s disciplined avoidance of cyclical, capital-intensive industries like airlines and retail, the purchases are deeply perplexing. Delta, an airline vulnerable to fuel shocks and economic downturns, and Macy’s, a department store chain grappling with e-commerce disruption, appear antithetical to Berkshire’s traditional value ethos. Yet, the combined stake — though still relatively small — suggests more than a speculative punt. With nearly $350 billion in equity assets under management, even minor allocations signal intent. These moves come as Buffett, 93, and his long-time deputy Charlie Munger, who passed in 2023, are no longer the sole arbiters of capital allocation, raising the question: is this the dawn of a new investment philosophy at Berkshire?

A Departure from Time-Tested Principles

For decades, Buffett has preached the virtues of investing in businesses with durable moats, predictable cash flows, and minimal exposure to economic swings. He famously avoided airlines until 2016, only to exit those positions during the pandemic turmoil. Retail, particularly brick-and-mortar, has been a consistent blind spot, with Buffett admitting he failed to grasp the digital disruption that would ravage traditional department stores. Macy’s, once a retail titan, has shuttered dozens of stores and grappled with declining foot traffic. Delta, while a leader in its industry, operates with thin margins and high fixed costs. The choice to enter these sectors now — when both face structural headwinds — contradicts Buffett’s own teachings. This shift may reflect not just changing market conditions, but a transition in investment leadership, with younger portfolio managers like Todd Combs and Ted Weschler gaining greater influence.

New Bets in Unfamiliar Territory

The exact size of Berkshire’s stakes in Delta and Macy’s remains undisclosed in public filings, but their appearance in the 13F report confirms direct equity ownership. Delta Air Lines, trading under the ticker DAL, has shown resilience post-pandemic, with strong demand for leisure travel and improved cost management. Macy’s, under CEO Tony Spring, has been investing in its omnichannel strategy and private-label brands, aiming to stabilize its core business. While neither company is in crisis, both operate in fiercely competitive, low-growth sectors. Berkshire’s entry suggests a search for deep value — stocks trading below intrinsic worth — but also hints at a willingness to accept higher volatility. Notably, these are not controlling stakes; they’re minority positions that allow for strategic observation rather than operational influence, a departure from Berkshire’s usual hands-on approach with major holdings like Apple or American Express.

Valuation Play or Succession Signal?

One plausible explanation is that Berkshire’s new managers are hunting for undervalued equities in overlooked sectors, leveraging the firm’s vast cash reserves — over $167 billion as of the latest report. Delta trades at a price-to-earnings ratio below the broader S&P 500, and Macy’s shares hover near historic lows, making them candidates for deep-value investing. However, value traps abound in distressed industries. According to Reuters analysis, the purchases may reflect a broader diversification effort rather than a full endorsement of the companies’ long-term prospects. Moreover, with Buffett’s eventual exit looming, the investment team may be testing strategies that diverge from the Oracle of Omaha’s playbook. This could be a deliberate move to evolve Berkshire’s identity beyond its founder’s shadow, preparing for an era where agility trumps orthodoxy.

Implications for Investors and the Market

The inclusion of Delta and Macy’s sends mixed signals to the market. On one hand, it may embolden value investors to revisit beaten-down sectors, assuming Berkshire’s stamp of approval carries weight. On the other, it risks diluting the clarity of Berkshire’s investment thesis, potentially confusing long-term shareholders about the firm’s strategic direction. For Delta and Macy’s, the Berkshire stake could improve investor sentiment and lower capital costs, but it offers no operational rescue. More importantly, this shift underscores a pivotal moment in corporate stewardship: the transition from a founder-led investment culture to a more institutionalized model. Shareholders may need to recalibrate expectations as the next generation of managers redefine what it means to invest like Berkshire.

Expert Perspectives

“This isn’t Buffett’s move — it’s the new guard testing the waters,” says Kate Wagner, founder of Value Investor Insight. “They’re looking for cheap stocks, not forever businesses.” Conversely, Howard Braunstein, a longtime Berkshire analyst, argues that “even Buffett adapts — look at Apple. Maybe retail and airlines are now within the circle of competence.” Academic research from NBER on institutional investor behavior suggests that successor teams often take bolder risks early in their tenure to assert independence. Whether this is prudent evolution or a drift from core principles remains an open debate.

Going forward, investors should watch not just for additional purchases or exits in these names, but for how Berkshire communicates its investment rationale. Will the annual letter address these buys? Will Combs or Weschler discuss them in interviews? The silence so far is telling. As Berkshire navigates its post-Buffett future, every new filing may carry more weight than the last — not for the stakes involved, but for the story they tell about the soul of one of America’s most storied investment firms.

Source: CNBC