Macy's is unsuitable for long-term investment due to the existential threat of e-commerce competition, particularly from Amazon, which outweighs its low valuation and asset base.

Well, here we already have a stock that I think , you know, is the kind of stock that Buffett might invest in, I don't know what the right word is. It might be stubborn enough to invest in.

This stock is Macy's, ticker symbol M, where Berkshire just pumped over $90 million to increase its stake by a staggering 142% during the quarter.

Frankly, to me, this stock looks like the kind of stock Buffett would prefer. It's a very cheap stock on paper, but it carries out a very boring business in a part of the sector that I feel is dying in the realm of physical mall retail.

Now, the funny thing is that I actually did day trading Macy's stock for a short period when I was younger. I even made a good profit from it too. But I would never consider this stock suitable for long-term investment.

Because I see online shopping , especially from Amazon, as a very significant existential threat .

But, as I said, I can understand why Berkshire would be attracted to such a valuable investment, given that the stock has fallen by about 40% in the past decade and is more than 35% below the sector level.

Sorry, it's trading at less than 35% below the sector level on a forward price-to-earnings basis .

However, management is at least trying to change things with a new strategy they call a "bold new chapter, " in which the plan aims to eliminate unnecessary expenses by closing 150 unprofitable locations , while redesigning 350 of their strongest stores to improve the customer experience.

They are also increasingly turning to their luxury brands, which they believe will generate better profit margins for them . In addition , some people are unaware that Macy's actually owns a lot of real estate, some of which may be worth billions of dollars.

In general, its value may equal the entire market value of the company, according to some estimates.

But I don't think these are compelling enough reasons to invest in this business in the long term, in the business itself in the long term.

You are still ignoring the presence of the " big elephant" in the room, namely Amazon. With that enormous beast lurking directly in front of you, it is highly unlikely you will ever get past it .

In fact, analysts expect Macy's sales and profits to decline in the coming years.

And for me, this makes it almost untouchable. I only encourage them because I like going to the actual shopping malls myself. I really miss that nostalgic experience, so I try to go every now and then .

But the truth is that traditional retail is no longer a viable area for investment these days, in my opinion. I simply stick with Amazon when it comes to retail. Therefore, I will place them last in our rankings for the time being.

In fact, I would rank this stock even lower than Macy's because I think it's a very bad deal at this price.