Investing.com — There’s nothing like a Berkshire Hathaway-related vote of confidence to drive a stock higher.
Ted Weschler, an investment manager at Berkshire Hathaway (NYSE:BRKa), aka much-admired billionaire Warren Buffet’s company, disclosed that he has taken a more than 5% stake in Dillards Inc (NYSE:DDS). That’s right, he bought shares in the department store and mall anchor from the days of yore. The news comes even as rival department stores JC Penney (OTC:JCPNQ), Neiman Marcus and Lord & Taylor have filed for bankruptcy this year.
Shares are soaring 37%.
The stock had dropped more than 40% for the year before Monday, with stores and shopping centers shuttered to prevent the spread of the coronavirus and as Americans moved their habits to online purchasing. Nary an analyst says to buy the stock.
Dillards’ sales dropped to $945 million in the most recent quarter, compared to $1.4 billion a year earlier. Its market cap has fallen to under $1 billion.