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Welcome to Episode #441 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Warren Buffett, the greatest value investor of all time, retired as CEO of Berkshire Hathaway (BRK.B - Free Report) at the end of 2025. Additionally, there were other changes at Berkshire Hathaway as Todd Combs, one of Buffett’s two “lieutenants” managing a portion of the Berkshire equity portfolio, also resigned.
As a result, 2026 looks very different at Berkshire Hathaway. Greg Abel is now the CEO and is not only managing operations but also the equity portfolio. However, the other lieutenant, Ted Weschler, also remains as a manager of part of the equity portfolio.
Recently, the 13-Fs for the first quarter of 2026 were filed with the SEC. This filing shows the stock purchases, and sales, by the big money managers, including Berkshire Hathaway’s equity portfolio.
Visa Sold from the Portfolio
It shouldn’t be a surprise that there were sales, and purchases, in the stock portfolio in the first quarter. Berkshire had already said that it was going to sell all of Todd Combs’ stocks.
That meant Visa (V) was sold from the Berkshire portfolio. It had owned Visa since 2011. While it was a small position, Visa shares had soared to new highs during that period, gaining over 1700% since the start of 2011.
Buffett had long ago confirmed that Visa was a Todd Combs position. Berkshire Hathaway has owned American Express for years, so owning Visa was not an odd choice for the portfolio.
Visa is not a cheap stock any longer as it trades with a forward price-to-earnings (P/E) ratio of 25. However, it’s expected to grow earnings by 14.1% this year and another 13.1% in 2027.
It’s a consistent performer with good free cash flow. It’s just the kind of company Buffett likes so it was shocking to see it sold out of the portfolio suddenly and completely.
Buying Macy’s and Delta Air Lines
But the bigger shocker was what was added to the portfolio. Berkshire bought department store retailer Macy’s and Delta Air Lines.
Buffett had tended to stay away from retailers in the equity portfolio given the cyclical nature of those businesses. Years ago, he did own a position in Walmart.
It’s also well known that Buffett won’t buy any airline stocks, although the two lieutenants were in several airline stocks in 2020, when the pandemic hit. Buffett made them sell out of their positions at that time.
Are Macy’s and Delta Air Lines Great Value Stocks?
Macy’s has been featured on the Value Investor Podcast numerous times over the years because it’s been a cheap stock for years. Currently, Macy’s is trading with a forward price-to-earnings (P/E) ratio of 9.8. A P/E ratio under 15 is considered a value stock. A P/E ratio under 10 is considered a deep value stock.
But the earnings outlook for Macy’s has been terrible for years. It’s been a value trap. Earnings have declined the last three years and are expected to fall another 9.1% this year.
Investors often justify buying because of the real estate the company owns. But it has sold some of that over the years so it’s not even as big of a factor.
Macy’s is a Zacks Rank #4 (Sell) stock.
If you had billions of cash sitting there, would you buy Macy’s for your portfolio?
Delta Air Lines is considered to be the top airline of the U.S. airlines. It’s been a cheap stock for years. Earnings were hammered during the pandemic but rebounded until the Iran War hit and jet fuel prices soared.
Earnings at Delta fell 5.5% last year and are now expected to fall another 9.6% this year due to higher jet fuel prices. But analysts expect a big turnaround next year, as demand for air travel remains robust, especially by business travelers. Earnings are expected to rise 43.4% in 2027.
Delta Air Lines has a forward P/E of just 14.4. A value stock is usually a P/E ratio of 15 or less. On a valuation basis, it’s a cheap stock.
Delta Air Lines is a Zacks Rank #3 (Hold) stock.
If you had billions of cash sitting there, would you buy Delta Air Lines for your portfolio?
What Else Should You Know About the End of the Cult of Berkshire Hathaway?
Tune into this week’s podcast to find out.
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The End of the Cult of Berkshire Hathaway
Key Takeaways
Welcome to Episode #441 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Warren Buffett, the greatest value investor of all time, retired as CEO of Berkshire Hathaway (BRK.B - Free Report) at the end of 2025. Additionally, there were other changes at Berkshire Hathaway as Todd Combs, one of Buffett’s two “lieutenants” managing a portion of the Berkshire equity portfolio, also resigned.
As a result, 2026 looks very different at Berkshire Hathaway. Greg Abel is now the CEO and is not only managing operations but also the equity portfolio. However, the other lieutenant, Ted Weschler, also remains as a manager of part of the equity portfolio.
Recently, the 13-Fs for the first quarter of 2026 were filed with the SEC. This filing shows the stock purchases, and sales, by the big money managers, including Berkshire Hathaway’s equity portfolio.
Visa Sold from the Portfolio
It shouldn’t be a surprise that there were sales, and purchases, in the stock portfolio in the first quarter. Berkshire had already said that it was going to sell all of Todd Combs’ stocks.
That meant Visa (V) was sold from the Berkshire portfolio. It had owned Visa since 2011. While it was a small position, Visa shares had soared to new highs during that period, gaining over 1700% since the start of 2011.
Buffett had long ago confirmed that Visa was a Todd Combs position. Berkshire Hathaway has owned American Express for years, so owning Visa was not an odd choice for the portfolio.
Visa is not a cheap stock any longer as it trades with a forward price-to-earnings (P/E) ratio of 25. However, it’s expected to grow earnings by 14.1% this year and another 13.1% in 2027.
It’s a consistent performer with good free cash flow. It’s just the kind of company Buffett likes so it was shocking to see it sold out of the portfolio suddenly and completely.
Buying Macy’s and Delta Air Lines
But the bigger shocker was what was added to the portfolio. Berkshire bought department store retailer Macy’s and Delta Air Lines.
Buffett had tended to stay away from retailers in the equity portfolio given the cyclical nature of those businesses. Years ago, he did own a position in Walmart.
It’s also well known that Buffett won’t buy any airline stocks, although the two lieutenants were in several airline stocks in 2020, when the pandemic hit. Buffett made them sell out of their positions at that time.
Are Macy’s and Delta Air Lines Great Value Stocks?
1. Macy’s, Inc. (M - Free Report) )
Macy’s has been featured on the Value Investor Podcast numerous times over the years because it’s been a cheap stock for years. Currently, Macy’s is trading with a forward price-to-earnings (P/E) ratio of 9.8. A P/E ratio under 15 is considered a value stock. A P/E ratio under 10 is considered a deep value stock.
But the earnings outlook for Macy’s has been terrible for years. It’s been a value trap. Earnings have declined the last three years and are expected to fall another 9.1% this year.
Investors often justify buying because of the real estate the company owns. But it has sold some of that over the years so it’s not even as big of a factor.
Macy’s is a Zacks Rank #4 (Sell) stock.
If you had billions of cash sitting there, would you buy Macy’s for your portfolio?
2. Delta Air Lines, Inc. (DAL - Free Report)
Delta Air Lines is considered to be the top airline of the U.S. airlines. It’s been a cheap stock for years. Earnings were hammered during the pandemic but rebounded until the Iran War hit and jet fuel prices soared.
Earnings at Delta fell 5.5% last year and are now expected to fall another 9.6% this year due to higher jet fuel prices. But analysts expect a big turnaround next year, as demand for air travel remains robust, especially by business travelers. Earnings are expected to rise 43.4% in 2027.
Delta Air Lines has a forward P/E of just 14.4. A value stock is usually a P/E ratio of 15 or less. On a valuation basis, it’s a cheap stock.
Delta Air Lines is a Zacks Rank #3 (Hold) stock.
If you had billions of cash sitting there, would you buy Delta Air Lines for your portfolio?
What Else Should You Know About the End of the Cult of Berkshire Hathaway?
Tune into this week’s podcast to find out.