- It certainly doesn’t hurt to have a big-time investor like Berkshire Hathaway validate my REIT pick.
- I have been consistently pounding the table in reference to my prized outlet center REIT, Tanger Factory Outlet.
- “You are neither right nor wrong because the crowd disagrees with you. You are right because the data and reasoning are right.” - Ben Graham.
STORE is more of bank than a REIT. The company underwrites its investments based more on contract risk than credit risk; other REITs don't offer the same unit-level analysis and risk management tools. Also, this is not a new company, STORE has a vetted management team with decades of experience in underwriting franchise-based credits.”
The title to that first was as follows,
Why Will This New Net Lease REIT Be A Game Changer?
Look closely, on the lower right corner of the chart (above) you can see a picture of Warren Buffett.
In June 2017, I wrote that “Berkshire Hathaway (BRK.A) (BRK.B)is now a 9.8% owner in Scottsdale-based Store Capital, investing ~$377 million to own shares. Store Capital simultaneously issued 18.6 million shares of company stock in a private placement to a wholly owned subsidiary of Berkshire Hathaway at a price of $20.25 per share.”
Of course, the Buffett news was great for me (and my followers) since I had previously (May 2017) cited that,
I am upgrading shares in STORE from a Buy to a STRONG Buy.”
“Buffett has a bet on Sears' revival, or perhaps its reincarnation... and Buffett’s prized investment vehicle, Berkshire Hathaway, has a few chips riding on STOR’s Net Lease model…So riddle me this… why not TANGER?”
Nonetheless, today is not the day to question Berkshire Hathaway’s portfolio-picking strategies, I am here to celebrate the fact that we (Buffett and I) are both happy camper investors who conducted on or own research and concluded that, “You are neither right nor wrong because the crowd disagrees with you. You are right because the data and reasoning are right.” Quite simply, STORE Capital is a Game Changer!