Following Warren Buffett’s Real Estate Play

Featuring Jeremy Shoykhet

Independent trader Jeremy Shoykhet is a high-conviction buyer of Seritage Growth Properties at current levels. In this interview with Brian Price, Shoykhet explains that a major loan from Berkshire Hathaway to Seritage will help shares of the REIT nearly double in the next year and a half. Filmed on August 15, 2018 in New York.

Published on
16 August, 2018
Topic
US Economy, Housing Market, Trading
Duration
12 minutes
Asset class
Equities
Rating
13

Comments

  • AR

    Anthony R.

    15 10 2018 10:37

    1       0

    Sears filing for Bankruptcy. Good luck with this trade! My "ad hominem attack about his (Jeremy) age", Mr Joel W., is rooted in the observed truth that inexperienced participants always underestimate risk. Jeremy's about to learn the folly of aping his hero (Mr Buffet) who holds a different risk/reward position ($35 entry + loan) to his trade idea.

  • AR

    Anthony R.

    24 8 2018 09:18

    3       0

    Jeremy is a young man with (3yrs out of uni). He has spotted an opportunity for the discount between SRG & the market leader (31x bigger) to close. He draws comfort from WB's personal stake in SRG. Buffet bought @ $35, de-risked himself with a loan to SRG and has nobody to answer to if the trade fails. Buying SRG today @ 49 on an 18m view = picking a subjective argument with Mr Market over the size of the discount. Hopefully JS gets lucky and locks in a profit, but he's kidding himself think he's getting "same exact exposure as Buffett".

  • PB

    Patrick B.

    21 8 2018 22:26

    1       0

    I would love to know the math behind the assertion that the stock is currently trading below its Net Asset Value. I did the numbers and could not arrive at the same conclusion, but I am no expert on the real estate.

  • AR

    Anthony R.

    17 8 2018 09:46

    2       2

    Comparing SRG with a REIT, 31x bigger = picking an argument with the market over how big the discount should be. Too subjective. WB's entry @ $35 + loan = vastly different risk/reward. Owning a different stock to WB, that share the same code. HFs love to short the "slow bleeds". They make great funding trades for their longs.

  • AR

    Anthony R.

    16 8 2018 19:09

    2       0

    Contrarian trades are seductive because that's how WB made his fortune, plus you feel and sound smarter than you would discussing a consensus trade.
    Q : Can you demonstrate (in numbers) how you arrive at the $1.7bn of value that the market is ignoring?

  • AH

    Andrew H.

    16 8 2018 14:25

    2       0

    Since you have studied this spin off from Sears, have you studied SHOS? Another misunderstood spin off from sears that looks to be way undervalued if they can get operations stabilized.