Berkshire Hathaway Deploys $55M into Macy’s as Insurance Float Hits $176B
BRKB•Berkshire Hathaway invested $55 million in Macy’s in Q1 2026 after the retailer reported 3% comparable sales growth and revenue beats under its Reimagine store revamp. Its insurance float has grown 16.5% annually to $176 billion since 1970, highlighting the cash engine enabling acquisitions like Taylor Morrison Home.
1. Q1 Stake in Macy’s
Berkshire Hathaway invested $55 million in Q1 2026 to acquire a stake in Macy’s, the department store that has lost 75% of its market value since 2015. Macy’s Reimagine initiative produced 3% comparable sales growth and revenue beats, reinforcing management’s belief in the retailer’s recovery potential.
2. Insurance Float Growth
Berkshire’s insurance float has compounded at 16.5% annually since 1970, reaching $176 billion by the end of Q1 2026. This cost-free capital base underpins the conglomerate’s ability to deploy cash into equity stakes and acquisitions without incurring debt.
3. Acquisition Strategy
Under CEO Greg Abel, Berkshire Hathaway has leveraged its growing float to acquire cash-generating businesses such as Taylor Morrison Home. This approach strengthens the industrial portfolio and maintains Warren Buffett’s focus on durable earnings drivers over short-term market swings.
