Macy's (M, Financial), which we own more for its real estate value than the retail business, suffered in the first half as expected earnings and cash flow turned into losses due to store closures. Its real estate value was also impacted due to reduced future demand for properties (especially for conversion to office space) and an acceleration of mall closures. We reduced the position at the end of the second quarter on a rebound in the stock price.
From the Yacktman Fund (Trades, Portfolio)'s second-quarter 2020 shareholder letter.
