Parsad Posted February 28, 2011 Posted February 28, 2011 The CEO of JOE has resigned and Berkowitz has won. Also, I guess Einhorn has lost! Cheers! http://www.bloomberg.com/news/2011-02-28/st-joe-ceo-to-leave-as-fairholme-s-berkowitz-succeeds-in-board-shake-up.html?cmpid=yhoo
bargainman Posted February 28, 2011 Posted February 28, 2011 I'm surprised that all the directors didn't leave.. maybe he needed some to stay for continuity...
BargainValueHunter Posted February 28, 2011 Posted February 28, 2011 Guess we know where the other two big shareholders placed their allegiances. ;D
bargainman Posted March 3, 2011 Posted March 3, 2011 Hmm.. sounds like a less than astounding victory... http://www.bizjournals.com/jacksonville/news/2011/03/01/greene-to-get-4m-st-joe-severance.html Wish I could lose 100+ Million a year then get kicked out and get a $4 million bonus, uh severance package! jeesh!!!
bargainman Posted March 3, 2011 Posted March 3, 2011 Here's some more info: http://www.bloomberg.com/news/2011-03-02/st-joe-climbs-as-quarterly-loss-narrows-on-lower-land-impairment-charges.html Greene’s severance package includes more than $4.3 million in cash and benefits plus 128,681 shares of stock and six years insurance coverage for potential lawsuits, the company said in a regulatory filing yesterday. He earned $2.8 million in 2009, when the company reported a loss of $130 million on revenue of $138 million, according to data compiled by Bloomberg. 130 million loss on revenue of 138 million! And the guy gets paid 2.8 million! jeesh!
Guest Posted March 3, 2011 Posted March 3, 2011 when berkowitz buys a company, doesn't he usually comment on how great the management team is? I seem to remember (maybe incorrectly) that a couple years back he talked about how good the JOE management was. If that's the case, I wonder what happened.
Myth465 Posted March 3, 2011 Posted March 3, 2011 when berkowitz buys a company, doesn't he usually comment on how great the management team is? I seem to remember (maybe incorrectly) that a couple years back he talked about how good the JOE management was. If that's the case, I wonder what happened. When the facts change ........ We had a real estate crash and a giant oil spill, high salaries are fine when things are well but not when... I also think he learned something from Einhorn, he said he agreed with most everything he said.
ERICOPOLY Posted March 3, 2011 Posted March 3, 2011 when berkowitz buys a company, doesn't he usually comment on how great the management team is? I seem to remember (maybe incorrectly) that a couple years back he talked about how good the JOE management was. If that's the case, I wonder what happened. When the facts change ........ We had a real estate crash and a giant oil spill, high salaries are fine when things are well but not when... I also think he learned something from Einhorn, he said he agreed with most everything he said. It would also just be smart to stroke them a bit -- this way you can have a productive conversation with them. It's more difficult to get your point across when you start right out by offending the person.
Guest Posted March 3, 2011 Posted March 3, 2011 Speaking of Berkowitz. Fairholme actually has ads on Morningstar. I can't say I feel great about that. From my experience, most great fund companies don't do ads. I hope my concerns are unfounded, though! http://quote.morningstar.com/fund/f.aspx?t=fairx
Guest Posted March 3, 2011 Posted March 3, 2011 when berkowitz buys a company, doesn't he usually comment on how great the management team is? I seem to remember (maybe incorrectly) that a couple years back he talked about how good the JOE management was. If that's the case, I wonder what happened. When the facts change ........ We had a real estate crash and a giant oil spill, high salaries are fine when things are well but not when... I also think he learned something from Einhorn, he said he agreed with most everything he said. haha. yes, you guys are right. ;D It would also just be smart to stroke them a bit -- this way you can have a productive conversation with them. It's more difficult to get your point across when you start right out by offending the person.
turar Posted March 3, 2011 Posted March 3, 2011 They owned JOE for a while. From the sidelines it seems Einhorn's piece was a wake up call for Berkowitz. The sequence of events doesn't seem like a coincidence.
bargainman Posted March 4, 2011 Posted March 4, 2011 It would also just be smart to stroke them a bit -- this way you can have a productive conversation with them. It's more difficult to get your point across when you start right out by offending the person. There's another manager out there, sometimes mentioned on this board, who could certainly use that piece of 'advice'.
BargainValueHunter Posted March 4, 2011 Posted March 4, 2011 WINNING! Berkowitz named Chairman of the Board at St. Joe
bargainman Posted March 5, 2011 Posted March 5, 2011 Wow. Well it looks like Joe's ex CEO is walking away with almost 8 million bucks. But from the comments about 'going around the globe to find partners to develop the land', maybe Bruce's earlier statement might become real... “When industry comes, which it will, to the area, because that area is in an aerospace corridor, it’s going to be one of the best places to live and work in Florida,” Mr. Berkowitz said in a Feb. 9 interview with the Wall Street Journal. “I want it to be a metropolis. I’m not just talking about a vacation community.”
txlaw Posted March 5, 2011 Posted March 5, 2011 Letter to Employees: http://www.sec.gov/Archives/edgar/data/745308/000095012311022239/b85418exv99w1.htm Local article about defense industry focus for JOE: http://www.waltonsun.com/news/focus-91439-newsherald-industry-joe.html
BargainValueHunter Posted March 6, 2011 Posted March 6, 2011 Barron's is Bearish http://online.barrons.com/article/SB50001424052970203737204576176842353837176.html While investors often get excited by land-rich companies, St. Joe's land doesn't look very attractive, and frustrated shareholders could be sitting on it for a long time.
twacowfca Posted March 7, 2011 Posted March 7, 2011 Barron's is Bearish http://online.barrons.com/article/SB50001424052970203737204576176842353837176.html While investors often get excited by land-rich companies, St. Joe's land doesn't look very attractive, and frustrated shareholders could be sitting on it for a long time. I think Bruce will be right in the long run. How long is long?
Carvel46 Posted March 7, 2011 Posted March 7, 2011 "I want it to be a metropolis. I'm not just talking about a vacation community," Berkowitz said last month in an interview. "When industry comes, which it will…because the area is in an aerospace corridor, it's going to be one of the best places to live and work in Florida." I don't know enough to have an opinion on JOE, except that Berkowitz is telling a beautiful story! He seems to have been trapped by a narrative and is now saving face by taking control and trying to dig himself out (as anyone would with 30% ownership). In a recent interview, he alluded to not enjoying managing analysts at Fairholme (can't find article) and letting go of his analyst team. Does anyone know about this? His analysts are now opening a new shop. http://online.wsj.com/article/SB10001424052748704678004576090363448990754.html. He seems to work mainly alone (except Charles M. Fernandez), through consultants and industry experts, a la leaning heavily on the model of Gerson Lehrman. This is all well and good--he's talented. If he closed his shop to new investors and limited size, I wouldn't care if he works alone. He has a great record! He has healthy experience! He seems to have a good process. But how can he scale the fund working alone? Managing other people is required for running a big shop. Big shops are built on hiring quality people and building a good culture--from Berkshire to Fairfax to big shops on either coast. Maybe it's hubris? Maybe Fernandez is a Munger type? If this is the case, maybe I'm wrong. Anyhow, I recently sold my FAIRX.
Myth465 Posted March 7, 2011 Posted March 7, 2011 He seems to have a good process. But how can he scale the fund working alone? Managing other people is required for running a big shop. Big shops are built on hiring quality people and building a good culture--from Berkshire to Fairfax to big shops on either coast. Maybe it's hubris? Maybe Fernandez is a Munger type? If this is the case, maybe I'm wrong. Anyhow, I recently sold my FAIRX. Humm doesnt Buffett work alone and how much does he manage?
Carvel46 Posted March 7, 2011 Posted March 7, 2011 Yes...and Buffett has Munger to bounce ideas off of. Buffett also has talent below him, operationally at least.
Myth465 Posted March 7, 2011 Posted March 7, 2011 Yes...and Buffett has Munger to bounce ideas off of. Buffett also has talent below him, operationally at least. True but, He also said he makes 100% of the investment decisions and does all of the analysis. ○ Warren Buffett - "My idea of a group decision is to look in the mirror."
BargainValueHunter Posted March 8, 2011 Posted March 8, 2011 http://www.cnbc.com/id/41947721 But the key to igniting the growth is jobs, Berkowitz said. "The future of this company is going to be based on bringing industry into the area," he said. Berkowitz recently has traveled to Singapore and Hong Kong to meet with companies that potentially may become a "game changer" by bringing in a business or building a hotel. St. Joe also may look for a joint venture, partners or bolt-on acquisitions, he said. Regarding Berkowitz's management style: "If it ain't broke, don't try to fix it".
Carvel46 Posted March 8, 2011 Posted March 8, 2011 Great quote Myth465. Buffett also often waxes poetic about the importance of the Munger partnership. In terms of investment ideas... What about BYD? Wasn't that idea presented to him by Munger?
Myth465 Posted March 8, 2011 Posted March 8, 2011 Great quote Myth465. Buffett also often waxes poetic about the importance of the Munger partnership. In terms of investment ideas... What about BYD? Wasn't that idea presented to him by Munger? Berkowitz even has his own Charlie ;D. Though as far as I know its not the same.
Guest dealraker Posted March 8, 2011 Posted March 8, 2011 Follower of Berkowitz since he was interviewed in OID in the mid 1990's and initial investor in his original mutual fund. Sold all my shares on the simply incredible popularity gain and nearly inconceivable invicible status this man has achieved.
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