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Edward Lampert Buys Cit Group Inc., Wells Fargo & Company, Bank Of America Corp., Sells SLM Corp.

February 18, 2010 | About:

Edward Lampert was once compared to Warren Buffett, until he got into Sears. Lampert made money with Sears debt, but he is having a hard time turning this out-of-favor retailer around.

One difference between Eddie and the young Warren is also, Sears is just one of the investments in Eddie’s holdings, currently account for about 50%. With the young Warren, Berkshire Hathaway was at a much larger position of his investment. He put almost everything in.

Interestingly, Eddie Lampert also bought into giant banks, Bank Of America, Wells Fargo, and boosted his positions in Citi. He also got the re-emerged CIT, like many other hedge fund peers.

Edward Lampert owns 11 stocks with a total value of $11 billion. These are the details of the buys and sells.

  • New Purchases: BAC, CIT, WFC,
  • Added Positions: C,
  • Reduced Positions: SLM,
For the details of Edward Lampert's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Edward+Lampert

This is the sector weightings of his portfolio:

Consumer Services 92.7%
Financials 7%
Industrials 0.3%


These are the top 5 holdings of Edward Lampert

  1. Sears Holdings Corp. (SHLD) - 66,024,366 shares, 49.93% of the total portfolio
  2. AutoZone Inc. (AZO) - 20,164,606 shares, 28.89% of the total portfolio
  3. AutoNation Inc. (AN) - 79,721,834 shares, 13.84% of the total portfolio
  4. Capital One Financial Corp. (COF) - 9,615,000 shares, 3.34% of the total portfolio
  5. CIT Group Inc. (CIT) - 4,527,973 shares, 1.13% of the total portfolio


Added: Citigroup Inc. (C)

Edward Lampert added to his holdings in Citigroup Inc. by 66.67%. His purchase prices were between $3.2 and $4.67, with an estimated average price of $4.04. The impact to his portfolio due to this purchase was 0.38%. His holdings were 31,250,000 shares as of 12/31/2009.

Citigroup Inc. has a market cap of $78.42 billion; its shares were traded at around $3.43 with and P/S ratio of 0.8. Citigroup Inc. had an annual average earning growth of 5.1% over the past 10 years.

New Purchase: CIT Group Inc. (CIT)

Edward Lampert initiated holdings in Cit Group Inc.. His purchase prices were between $26.04 and $29.64, with an estimated average price of $27.92. The impact to his portfolio due to this purchase was 1.13%. His holdings were 4,527,973 shares as of 12/31/2009.

CIT Group Inc. is a bank holding company that provides financing and leasing capital for commercial companies throughout the world. Cit Group Inc. has a market cap of $13.18 billion; its shares were traded at around $32.56 . CIT Group Inc. had an annual average earning growth of 27.2% over the past 5 years.

New Purchase: Wells Fargo & Company (WFC)

Edward Lampert initiated holdings in Wells Fargo & Company. His purchase prices were between $25.32 and $30.46, with an estimated average price of $27.63. The impact to his portfolio due to this purchase was 0.37%. His holdings were 1,500,000 shares as of 12/31/2009.

Wells Fargo & Company has a market cap of $139.78 billion; its shares were traded at around $27.34 with a P/E ratio of 15 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.7%. Wells Fargo & Company had an annual average earning growth of 10.8% over the past 10 years.

New Purchase: Bank Of America Corp. (BAC)

Edward Lampert initiated holdings in Bank Of America Corp.. His purchase prices were between $14.58 and $17.5, with an estimated average price of $15.79. The impact to his portfolio due to this purchase was 0.06%. His holdings were 453,512 shares as of 12/31/2009.

Bank of America Corp. is one of the world's financial services companies. Bank Of America Corp. has a market cap of $137.37 billion; its shares were traded at around $15.88 with and P/S ratio of 0.9. The dividend yield of Bank Of America Corp. stocks is 0.3%. Bank Of America Corp. had an annual average earning growth of 7.5% over the past 10 years.

Reduced: SLM Corp. (SLM)

Edward Lampert reduced to his holdings in SLM Corp. by 31.98%. His sale prices were between $8.23 and $12, with an estimated average price of $10.62. The impact to his portfolio due to this sale was -0.1%. Edward Lampert still held 2,890,810 shares as of 12/31/2009.

SLM Corporation is the one of nation's largest private sources of funding and servicing support for higher education loans for students and their parents. SLM Corp. has a market cap of $5.19 billion; its shares were traded at around $10.94 with a P/E ratio of 11.6 and P/S ratio of 1.1. Slm Corp. had an annual average earning growth of 12.8% over the past 10 years. GuruFocus rated SLM Corp. the business predictability rank of 2.5-star


Rating: 2.6/5 (10 votes)

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