Buffett's company buys 10 pct of real estate investment firm

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Store Capital (STOR), a real estate investment trust, rose 11% Monday after a subsidiary of Warren Buffett's Berkshire Hathaway (BRK.A), National Indemnity, took a 9.8% stake.

Berkshire bought 18.6 million shares of Store Capital Corp. for $20.25 per share in a private placement sale. 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. Store Capital invests in single-tenant real estate and receives "above average" yields on those investments, according to St. Juste. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the company's stock.

Store Capital said Berkshire's investment represents a vote of confidence in its leadership and business model. Berkshire Hathaway posted earnings of $1.87 per share in the same quarter last year, which suggests a positive year-over-year growth rate of 3.2%. They were prepared to take advantage of an attractive buying opportunity in the market and they did so. Mr. Buffett responded within hours, he said, asking for more information.

About 10 days ago, Mr. Weschler called Store Capital to say that Berkshire wanted to make an investment, Mr. Volk said.

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Store's portfolio includes more than 1,750 properties in 48 USA states, including such customers as AMC Entertainment and the second-largest Applebee's restaurant franchisee.

"The stock market has been going up basically since March of 2009", said Buffett, 86.

A single-payer healthcare program is "probably the best system" for America, investment tycoon Warren Buffett said Monday during an interview with PBS NewsHour. But he also said that Berkshire's wholly owned furniture businesses have seen little effect from online shopping. The investment makes it Store's third-largest investor, after Vanguard Group and Fidelity Management & Research.