The company owned by Warren Buffett, Berkshire Hathaway, is now one of the shareholders and owners of Seritage Growth Properties stocks, the investment trust which is a collection of 235 real estate properties that Sears created.
The transaction gave Berkshire 8% stake on the investment portfolio of Sears. This made Buffett's investment company the second largest shareholder of Seritage, next to Fairholme Capital Management.
According to CBS, such transaction most likely is worth $70 million per Wednesday’s closing price. Moreover, just after the investment has been made, the shares of Seritage soared high at 14.6 percent to $40.37, with an increase of $5.14 per share.
Berkshire owns 2 million shares of Seritage as per Securities and Exchange Commission filing on Thursday. Considering the current price of the shares, Berkshire’s stake at Seritage would now be nearly $80 million although the 8% ownership of Seritage stocks is just a minor investment for the billionaire who is not fond of making an investment in his own name.
However, according to CNN Money, Buffett is not the only well-known investor to make a bet on Seritage. In fact, its largest shareholder is Fairholme Capital Management, a company run by the well-regarded value investor Bruce Berkowitz. Moreover, Hedge fund Citadel is the third-biggest investor of the portfolio.
According to , the documents did not state whether Buffett made the decision in investing with Seritage. The multi-billionnaire is the chairman, CEO and largest shareholder of Berkshire Hathaway. He is consistently ranked among the world's wealthiest people. He was ranked as the top 1 of the world's wealthiest people in 2008, and currently the third richest in 2015. Moreover, in 2012, he was named as one of the world's most influential people by Time Magazine.
What do you think of Berkshire Hathaway’s latest shopping spree on the investment market? Do you think that the 8% ownership will eventually bring fortune to the investment giant?