Stock Market: Buffett went bargain hunting and found this REIT

(Store Capital):   It has been a brutal year for the retail sector. Between   store closures , bankruptcies, and the continued growth of e-commerce giant Amazon, Wall Street has tossed scores of companies with retail exposure into the discount bin.

Store Capital was one of those companies that had been cast aside. This retail-focused real estate investment trust (REIT) had fallen about 20% between January and May of this year. However, the company's fortunes turned around after news broke that Buffett had acquired a 10% position in the company.

Why is Buffett interested in Store Capital? My hunch is that he is a fan of the company's business model. Store Capital specializes in leasing properties to small- and medium-sized businesses that do not have a credit rating with a nationally recognized agency. That scares off other REITs, which keeps the competition low and the rents high.

While this might sound like Store Capital is playing with fire, there are several measures that the company takes to protect itself, including the following:  (Cont'd)

Full Disclosure: I currently own shares of STOR.

Disclaimer: This seed is not meant to be a recommendation to buy or sell any stock.