If other hedge funds start shorting Berkowitz’s largest holdings, there will for sure be one winner: chocolatiers. In October after David Einhorn revealed his short position against Berkowitz’s St Joe (JOE), Berkowitz said “I would like to send him a box of chocolates”.
This week in a Bloomberg News article this is what Berkowitz said:
St. Joe missed past opportunities to maximize its land value, Berkowitz said. In 1959, then-CEO Edward Ball spurned an offer from Walt Disney, founder of Walt Disney Co. (DIS), saying, “I don’t do business with carnival people,” according to “Green Empire,” a 2004 book about St. Joe. Walt Disney World Resort opened in Orlando in 1971.
“Orlando should be sending a box of chocolates to St. Joe every day,” Berkowitz said.
There you have it. Berkowitz’s favorite gift idea is a box of chocolates.
Einhorn is certain that St. Joe is a great short. “We suspect Bruce Berkowitz has confused a bad investment with what he thought was a bad management,” Greenlight said. We don’t know who is going to come out ahead in the Einhorn vs. Berkowitz match, but we are certain that if Berkowitz keeps talking about sending boxes of chocolates, cocoa will be the hot commodity of 2011.