On Monday, real-estate investment trust Store Capital Corp. disclosed Berkshire has purchased a 9.8% stake in the firm. The company issued 18.6 million shares via a private placement at $20.25 per share.
The $377 million investment by Berkshire follows a deal last week in which Buffett's company agreed to prop up Canada's Home Capital Group Inc. by providing a credit line and committing to take an equity stake. So, most stocks that are involved with brick-and-mortar retail have fallen as well, and REITs that own retail real estate have not been spared. Its largest investments are in single-tenant properties such as chain restaurants, veterinary clinics and fitness centers. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company.
Store Capital's stock price is getting a huge boost from everyone's favorite Nebraskan investor.
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.
Stock market analysts and brokers have recently amended their target prices on shares of Berkshire Hathaway (NYSE:BRK-B).
Shares of Store were up $2.20, or 10.6 percent, at $22.97 in afternoon trading, likely reflecting Buffett's imprimatur.
A single-payer healthcare program is "probably the best system" for America, investment tycoon Warren Buffett said Monday during an interview with PBS NewsHour.
Buffett, who at an estimated net worth of $73.3 billion is the fourth wealthiest man in the world, said putting government in charge of health care would be "more effective" than market reforms at lowering costs. The investment makes it Store's third-largest investor, after Vanguard Group and Fidelity.
China celebrates symbolic global index debut for stocks
Secondly, only stocks which can be traded through the Stock Connect programme in Hong Kong are included. The euro rose to $1.1144 from $1.1128, and the dollar dipped to 111.39 Japanese yen from 111.41 yen.