Bruce Berkowitz on Sears Holdings

• Posted by ToddSullivan
• on June 6th, 2008

The following are an attendees notes from June 5, 2008 AAII NYC Conference on Sears Holdings (SHLD). Note Berkowitz recently added call options to his Sears position.

6. Sears Holding (SHLD) ($85.26) -

A. Lampert has cards up his sleeve. He is a smart guy. The price of SHLD means you get Eddie Lampert for nothing.

B. Obvious investment is real estate for Sears.

C. Claims lots of Free Cash Flow.

D. Bought back stock at high price.

E. Think about a young Berkshire Hathaway. Buffett struggled with the ailing textile mill for over 7 years before he pulled the plug. Look what Berkshire turned into.

F. Claims that K-Mart and Sears could disappear as retailers and all is still good. If they happen to hit, merely a bonus. “What if they become a Wal-Mart?” Don’t count on it, but could happen.

G. You can’t kill Sears. If you can’t kill it you should own it.

Disclosure (“none” means no position):Long SHLD,

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