Berkshire Invests in Real-Estate Firm Store Capital

Berkshire Invests in Real-Estate Firm Store Capital

Store Capital issued 18.6 million shares to Buffett's company in a private placement at $20.25 apiece, the Scottsdale, Arizona-based REIT said Monday in a statement. Zacks Investment Research cut shares of Berkshire Hathaway from a hold rating to a sell rating in a report on Friday, April 28th.

Store describes itself as the leader in "Single Tenant Operational Real Estate" and says it is "dedicated to real estate net-lease profit-center property investments". And prior to today's surge, the stock had fallen 25% over the past year, including a drop of more than 13% since reporting disappointing first-quarter earnings in May.

Store Capital's stock jumped almost 11 percent to $23 after the investment was announced.

One possible reason is that Berkshire is betting that not all retail is in trouble - specifically service-based businesses that have little to worry about in terms of e-commerce headwinds.




Shares of Store rose more than $2, or 10 per cent, to $22.86 in early trading. 4046778 shares were traded during the last session.

Berkshire, which held $96.5 billion in cash as of March 31, is actively seeking new investments for its growing war chest.

When Woodruff asked whether the country needed to "think about some sort of single-payer system", Buffett said it would be the more effective way to bring down costs. Entertainment, Applebee's and Ashley Furniture are among its 10 biggest customers, according to an investor presentation.

Analysts expect that Berkshire Hathaway Inc. The company's Market capitalization reached to $3.76 billion, $418.90 million outstanding shares. That makes Berkshire its third-largest investor.

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