J.C. Penney Company, Inc. (JCP), Berkshire Hathaway Inc. (BRK.A): There’s More Than Meets the Eye With Sears Holdings Corporation (SHLD)

I agree with Santoli in that the comparisons between Sears and Berkshire Hathaway Inc. (NYSE:BRK.A) are far-fetched at this point. Sears is not remotely close to being a “baby Berkshire” corporation. Berkshire is one of the most diversified companies in the world, and therefore an almost bullet-proof investment choice for the long haul.

But the underlying bullish point about Sears remains the same: if Lampert can develop Sears’ real estate assets, we could see a dramatic turnaround story that will catch many by surprise.

The bottom line

It is important for investors to understand Sears’ stock in a new perspective as Sears is becoming less and less about the retail side of its business. In comparison, J.C. Penney Company, Inc. (NYSE:JCP) is stubbornly clinging onto hopes that its own retail business will rebound.

Sears is morphing into a real estate play that could be worth much more than Sears’ current valuation. Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) is a much more stable and proven investment, but if you feel like a daredevil bet then Sears is the stock for you.

Whether or not Baker Street Capital Management’s dream can be realized is not certain as there is no proof that Lampert has Buffett-esque skills. The one piece of advise I leave you with is this:  Short the “Sears iceberg” at your own risk.

The article There’s More Than Meets the Eye With Sears originally appeared on Fool.com and is written by Evan Buck.

Evan Buck has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. 

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