Editor’s note: This article was first published in June 2017 as news; the $377 million stake, the share prices and Christopher Volk’s role as CEO date from then, and Store Capital was taken private in 2023, so its STOR ticker no longer trades.
It has just emerged that Warren Buffett, through Berkshire Hathaway, has made a $377 million investment in Store Capital Corp in a private transaction in which Berkshire would acquire 18.6 million shares at a purchase price of $20.25 per share, giving Buffett’s company 9.8% of Store Capital’s stock.
With this purchase, Buffett is placing his trust in US real estate. Remember that in 2016 Buffett said he did not believe real estate was in a price bubble, and that he saw this kind of investment as less volatile, for the times ahead, than even stocks.
Store Capital is in the business of investing in properties that it leases out.
After the purchase was announced in the Omaha World-Herald, Store Capital’s shares soared 11.27% to $23.11.
Christopher Volk, Store Capital’s CEO, said in the statement:
“An investment in our company by one of the most admired investors in history is a vote of confidence in our leadership team and our experience, as well as a vote of confidence in our approach to investing in and managing real estate.”
He was referring to Warren Buffett.
See also: Warren Buffett’s 16 best tips on investing
Featured image: WiinterU, CC0 1.0, via Wikimedia Commons.
