Berkshire Hathaway established a 1% ownership position in Macy's.
The investment is valued at approximately $55 million, according to a Securities and Exchange Commission filing.
This acquisition follows Greg Abel's transition to CEO of the conglomerate, succeeding Warren Buffett.
Macy's shares surged approximately 5% in after-hours trading.
The stock reached a price of $19.39 following the news.
Investors attribute the gains to optimism regarding the retailer's strategic initiatives and financial outlook.