The real estate company Warren Buffett just invested in is soaring
Store Capital's stock price is getting a huge boost from everyone's favorite Nebraskan investor.
Store Capital, a real estate investment trust, announced a $377 million stake by Warren Buffett on Monday. This amounted to 9.8% of the company's outstanding shares. Store Capital is known for investing in single-tenant real estate.
"An investment in our company from one of history's most admired investors represents a vote of confidence in our experienced leadership team and an affirmation of our profit-center real estate investment and management approach," said Christopher Holk, Store Capital's CEO. He was referring to Berkshire Hathaway chairman Warren Buffett.
The Warren Buffett effect is probably in play here. Matt Levine, a Bloomberg columnist, put it best in a newsletter following Buffett's C$2 billion credit line to Home Capital last week.
Store Capital has not had a great year. The company is down 6.72% so far in 2017, even after the more than 10% boost from Buffett's investment. The company is currently trading at $23.04.
