On Monday morning, Warren Buffett’s Berkshire Hathaway (BRKA) announced that it acquired a 10% stake in STORE Capital (STOR), a triple-net REIT with more than $4 bn market cap.
The market’s reaction:
The stock opened almost 9% higher on record volume and closed the day +11.42% higher than Friday’s close. What a difference Buffett can make!
The interesting point in the story is that Berkshire bought the stake in a private placement at a 2.50% discount (at 20.25 USD a piece, according to MarketWatch).
And the long-term chart:
The stock is in a 1 year downtrend, with this jump just below its trendline. This jump barely had an impact on VNQ or IYR, the stock’s share in these ETFs is relatively small, around 0,40%.
Disclosure: We are long VNQ and IYR.