Its become obvious that Kmart and Sears no longer fit into today's world of retail. In fact, Eddie Lampert's Sears Holdings Corp (SHLD) is on the fast track to becoming the next Berkshire Hathaway. In 1989, Lampert was fortunate enough to be granted a 90 minute meeting with Warren Buffett. It was at this meeting that Lampert was able to question Buffett on his investment philosophy. Since then the 42 year old star has built a net worth that is estimated to be around $2 billion.
Make no mistake, Edward Lampert is no lightweight, and no one should under estimate his potential to make money. It has become very clear that Lampert's strategy for Kmart and Sears is not to own and operate "has been" retailers. Lampert has put Kmart and Sears into full liquidation mode, and the face of retail is about to enter a whole new realm. In fact, I believe the next major retailer to be gobbled up and liquidated will be J.C. Penny (JCP). Why? It just fits the definition.
Slowly but surely, Kmart and Sears stores are being closed around the country, and its real estate holdings are being sold. Sears Holdings is more like a real estate holding company than a retailer. As I walked into Sears last night, the store looked more like a thrift shop than a former American icon. In fact, the company is being run by a bunch of Wall Street financiers, not retail experts.
To show you that Sears is in a full liquidation mode, Sears is trying to find a buyer for a company it purchased a few years ago, Lands End. In addition, while Sears and Kmart employee's continue to get pink slips while former Sears executives parashute out very rich.
I don't want you to miss out on another potential Berkshire Hathaway, so I am adding Sears Holdings (SHLD) to our "Big Picture" portfolio with a buy limit of $139.00. I feel very comfortable having Eddie Lampert with us, and not against us.
