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Marketwatch has an excellent piece about Eddie Lampert, CEO of Sears Holdings Corp. (NASDAQ:SHLD). In addition to managing the retail chain, Lampert also manages a hedge fund with astonishing success: An average annual return of 29% (before fees) since 1988.
Many speculate that Lampert will essentially turn Sears into an investment vehicle. And with his track record and more than $3 billion in cash flow generated in 2006, that could be a good thing. Partly because of Lampert's affinity for Warren Buffett and his propensity for quoting him, SHLD is drawing comparisons to a younger Berkshire Hathaway Inc. (NYSE:BRK.A) (the market cap is currently less than 1/4 of Berkshire's).
I think investors should take a long look at SHLD. It may be a cheaper, more transparent alternative to private equity/hedge funds.
Sears: Retailer or hedge fund?
Posted Jan 23rd 2007 2:14PM by Zac Bissonnette
Filed under: Sears Holdings (SHLD)
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Reader Comments (Page 1 of 1)
1-23-2007 @ 3:53PM
mike staats said...
i have no comments just a novice question for anybody ,if shld becomes a hedge fund are they limited to buying only things that they are associated with or i guess what iam trying to ask what would they be able to buy.
thank you ,from a novice investor
1-24-2007 @ 1:21AM
joe fritz said...
i have owned shld for over two years. it is a great stock and the way i see it we have access to a financial genius at our fingertips. it shouldbe everyone's goal to have 200 shares of the stock. with 15 years the stock should be worth 3,000 a share and you have a nice nest egg. and i am over 60 so it is a potential retirement fund for me and a legacy for my children.
why i feel this way is because eddie lampert has a majority share in sears and because it generates cash. he can use the profits to funnel them into profitable investments. it follows a buffet model. have a monoply or near one and have the model generate case. the best feeling is thatwealty individuals give hime money to invest, millions. if they trust him, why shouldn't I?
1-24-2007 @ 12:44AM
joe fritz said...
i have owned shld for over two years. it is a great stock and the way i see it we have access to a financial genius at our fingertips. it shouldbe everyone's goal to have 200 shares of the stock. with 15 years the stock should be worth 3,000 a share and you have a nice nest egg. and i am over 60 so it is a potential retirement fund for me and a legacy for my children.
why i feel this way is because eddie lampert has a majority share in sears and because it generates cash. he can use the profits to funnel them into profitable investments. it follows a buffet model. have a monoply or near one and have the model generate case. the best feeling is thatwealty individuals give hime money to invest, millions. if they trust him, why shouldn't I?