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Has Eddie Lampert Lost His Touch?

By admin - Posted on February 22nd, 2008
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Consider the following scenario: A great company faces a languishing stock price. A few quarters of managerial efforts fail to revive profits. The stock continues to decline. As a result, the CEO is ostracized for having lost his ability. Sound all too familiar?

During the Internet era, this exact scenario was being exacted on Warren Buffett. Buffett's company, Berkshire Hathaway, was failing to outperform the darlings of the day like Cisco  and Yahoo! , so Buffett was perceived as having lost his acumen. Those who continue to kick themselves for abandoning Buffett may have a second chance, though. Eddie Lampert, hedge-fund-manager extraordinaire, is currently trying to right the ship at Sears Holdings. Shares in retailer Sears, of which Lampert is chairman, currently trade at 50% below their 52-week high. 

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