Berkshire Hathaway (NYSE:BRK-B)

Randall Padilla
June 28, 2017

Store Capital invests in single-tenant real estate for profit.

That's the view of billionaire investor Warren Buffett, when asked whether Donald Trump deserves credit for surging stock prices after he was elected president in November. In the transaction, STORE Capital issued some 18.6 million shares of company stock in a private placement to one of Berkshire Hathaway's subsidiaries, National Indemnity Company, at a price of $20.25 per share.

The announcement sent shares of Store Capital higher by more than 10 percent on Monday.

Warren Buffett's Berkshire Hathaway Inc. has made its second big real estate bet in two weeks. The result is that only 3% of the company's entire investment portfolio is within close proximity (a quarter mile in any direction) to ANY Sears (NASDAQ:SHLD), J.C. Penney (NYSE:JCP), Macy's (NYSE:M), Kmart or hhgregg (NYSE:HGG) store.

"An investment in our company from one of history's most admired investors represents a vote of confidence in our experienced leadership team", Store Chief Executive Christopher Volk said in a statement.

On Friday, Shares of Cousins Properties Inc (NYSE:CUZ) increased 0.34% and closed at $8.94 after opening 8.93 with the overall traded volume of 11.25 million shares. Berkshire "saw an opportunity to invest at an attractive price, and they believe in us".

"We will be the economic leader", Buffett said in the interview. Evercore ISI reiterated an "underweight" rating on shares of Berkshire Hathaway in a research report on Monday, February 27th.

Berkshire's investment makes it Store Capital's third-largest shareholder, behind the Vanguard Group and Fidelity Management & Research Co., according to data from FactSet.

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