2 REITs Warren Buffet Should Buy Next
Net-lease REIT Store Capital (NYSE: STOR) recently announced that Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), the conglomerate led by Warren Buffett, had invested $377 million in the company. While we don't know if Buffett himself initiated the transaction, it does represent Berkshire's first major REIT purchase.
Certain types of real estate can be Buffett-like businesses. Net lease real estate, like Store Capital's portfolio, is attractive because tenants are on long-term leases and are required to pay the variable costs of property ownership. Healthcare real estate could also be attractive, thanks to its high dividends and recession-resistant qualities. In a nutshell, while I couldn't see Berkshire investing in hotels or shopping malls anytime soon, there are some REITs that would be smart ways for Berkshire to put its nearly $100 billion cash hoard to work.
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Source: Fool.com
