Cramer's Take on Eddie Lampert's Stocks

Part of the philosophy behind Stockpickr.com is to follow in the footsteps of smart people. Sometimes that means buying what a great investor like Eddie Lampert is buying.

We often look at opportunities that involve earnings-guidance revisions, stock buybacks or shareholder activism among many other setups. But sometimes, especially when it involves a brilliant, successful investor like Lampert, you might wonder whether you should just jump right in.

After all, Lampert clearly does his homework with his investments and is a long-term holder in most situations. However, our own Jim Cramer would implore you to do your own homework and not blindly follow someone into a stock, even the greatest investor of all time.

With that in mind, we set up Cramer's Take on Eddie Lampert Stocks, a portfolio that offers Cramer's stance on a few of the stocks in Lampert's holdings. We gleaned Cramer's opinions from comments made on his "Mad Money" TV show and in his Wall St. Confidential videos on TheStreet.com TV.

First up is Lampert's largest holding, Sears Holdings(SHLD Quote), where Lampert serves as chairman.

Cramer's Take: Cramer addressed Sears' recent sharp decline due to earnings woes. "The company has to start making some sales and selling some of its real estate," he said.

The current situation is such that Cramer believes people should hold Sears for the longer term. Cramer said that while he is disappointed in the stock, which he owns for his Action Alerts PLUS charitable trust, he is not selling it now.

To watch Gregg Greenberg's video take of this column, click here.