Money Talks, Buffet Walks In

Berkshire Hathaway, the financial conglomerate run by the world’s leading investor, Warren Buffett, recently made a $377 million investment in STORE Capital, and the financial world is taking note. The investment makes Berkshire Hathaway the third-largest shareholder at 9.8 %.

Money magazine recently profiled STORE Capital, along with other notable recent Buffett investments, in an article entitled, “These Are the Companies Warren Buffett is Betting on Next.”  Known for being the world’s most shrewd financial mind, Buffett’s investment was the culmination of nearly four years of due diligence on STORE.

Further evidence of the Oracle of Omaha’s wisdom comes from DCF models cited by Seeking Alpha suggesting that STORE Capital is undervalued and selling at a 50% discount. The article cites the company’s structural competitive advantage, sound underwriting standards, and robust portfolio management as main strengths.