The downgrade came one day after Warren Buffett's Berkshire Hathaway (BRK.A) (BRK.B) invested $377 million for a 9.8% stake in the Arizona-based real estate investment trust.
In a private placement, Berkshire subsidiary National Indemnity Co. received 18.6 million shares of the REIT at a price of $20.25 per share. Evercore ISI reiterated an "underweight" rating on shares of Berkshire Hathaway in a research report on Monday, February 27th. 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.
"Over the years, they followed every earnings release, every conference call, every presentation, every investor supplement, and became very familiar with the company and our investment strategy", Volk said.More news: Man United agree terms with 25-year-old global star
Store Capital said Berkshire's investment represents a vote of confidence in its leadership and business model.
Following U.S. election volatility some analysts have updated their recommended target prices on shares of Berkshire Hathaway (NYSE:BRK-B).
STORE Capital shares were trading up over 10% at $22.87 Monday morning. Berkshire "saw an opportunity to invest at an attractive price, and they believe in us". The conglomerate, which owns businesses ranging from insurers to cooking supplies and also takes large stakes in public companies, held $96.5 billion in cash as of March 31.More news: Erdogan rejects Arab demands; Turkish troops stay in Qatar
"We will be the economic leader", Buffett said in the interview. The company boasts more than 1,750 properties across 48 states and some of its biggest customers include AMC Entertainment, Applebee's and Ashley Furniture, CNBC added. The stock's market capitalization is 274.91M. Representatives for Camping World didn't immediately respond to a request for comment.
Argus began new coverage on Berkshire Hathaway giving the company a " rating.More news: South Dakota has 1st human West Nile virus case of the year