market folly

This morning on CNBC, Eddie Lampert was interviewed on a myriad of topics. The chairman of Sears Holdings (SHLD) and hedge fund manager of ESL Investments/RBS Partners says that risk is 'coming back' to markets.


On Risk & the Markets

With the low interest rate environment, Lampert tosses out a quote we've heard a lot over the past few years: "They (investors) want a return on their money rather than just a return of their money."

David Bonderman, founding partner of Texas Pacific Group (TPG) also joined the conversation and argued that "the economy is better than you think it is ... the US is not in trouble in the short-term, maybe the long-term is another story."


On Bricks & Mortar Retail

Lampert notes that the "world is very different" and certain great iconic American brands like Disney (DIS) have had success, while there's others that need reinvention (JC Penney, Sears, etc).

The Sears chairman mentions that both retail and media are in re-invention mode, saying some companies will have "profitless prosperity."

He also argues that another one of the businesses he owns in size, Autozone (AZO), is a great retail business because it's less affected by internet competition. If something's wrong with your car and you need a new part, you need it now rather than waiting a few days for it to arrive via shipping.

Embedded below are the videos of Eddie Lampert's interview (email readers click to come view):

Video 1:


And Video 2:



There were a bunch of rare appearances on CNBC this morning, so don't miss:

- John Phelan of MSD Capital on the economy & markets