One of my favorite investors, Bruce Berkowitz, gave an update on Sears.
Berkowitz believes that Sear’s real estate is worth much more than any estimate and it is the margin of safety.
I admire Berkowitz because he thinks in terms of decades and does his best to tear down his own thesis.
Also, Sears has so much NOL that it will not pay taxes for some time~
For me, well, I will wait until Sears stock starts rising again. Also, I am not a big fan of restructuring plays because I don’t have the expertise.
Berkowitz take on on Freddi and Fannie are good. The government will eventually pay back the shareholders and decrease their stake in them.
For me, I just don’t like playing with regulatory risk. But it is a good trade. Freddie and Fannie will eventually be off the government.
Berkowitz’s explanation on St Joe is solid too. Good real estate play. Florida is not going away.
For me, well, I will think about it. I have other good stock picks that I like.
I am very thankful that Berkowitz shares his wisdom with us!
Thank You Jesus for internet and great investors who are willing to share their thoughts