Author Topic: BAM - Brookfield Asset Management  (Read 307423 times)

rkbabang

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Re: BAM - Brookfield Asset Management
« Reply #350 on: January 05, 2018, 12:46:38 PM »
If Buffett is looking for an elephant to purchase why not acquire BAM and make Flatt the next CEO...

+1  I'd be a lot less worried about his inevitable retirement if he did this.


augustabound

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Re: BAM - Brookfield Asset Management
« Reply #351 on: January 05, 2018, 03:40:10 PM »
If Buffett is looking for an elephant to purchase why not acquire BAM and make Flatt the next CEO...

+1  I'd be a lot less worried about his inevitable retirement if he did this.

How would current BAM shareholders feel about this?
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Uccmal

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Re: BAM - Brookfield Asset Management
« Reply #352 on: January 05, 2018, 03:46:16 PM »
If Buffett is looking for an elephant to purchase why not acquire BAM and make Flatt the next CEO...

+1  I'd be a lot less worried about his inevitable retirement if he did this.

Please no.  Dont take Bruce away.....   He will get much better returns for shareholders of BAM over the next 15 years than if he took over the much bigger BRK. 

Besides, wouldn't you think that Bruce wants to keep building what he has been working on.  Thats where the fun is.  I am envious.  If only I could handle the stress and was a wee bit (okay, alot) smarter. 
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Uccmal

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Re: BAM - Brookfield Asset Management
« Reply #353 on: January 05, 2018, 03:47:17 PM »
If Buffett is looking for an elephant to purchase why not acquire BAM and make Flatt the next CEO...

+1  I'd be a lot less worried about his inevitable retirement if he did this.

How would current BAM shareholders feel about this?

I think I was typing and sending when you posted this. 
GARP tending toward value

augustabound

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Re: BAM - Brookfield Asset Management
« Reply #354 on: January 05, 2018, 04:05:39 PM »
If Buffett is looking for an elephant to purchase why not acquire BAM and make Flatt the next CEO...

+1  I'd be a lot less worried about his inevitable retirement if he did this.

Please no.  Dont take Bruce away.....   He will get much better returns for shareholders of BAM over the next 15 years than if he took over the much bigger BRK. 

Besides, wouldn't you think that Bruce wants to keep building what he has been working on.  Thats where the fun is.  I am envious.  If only I could handle the stress and was a wee bit (okay, alot) smarter.
Yes.  I don't see upside to BAM being bought out. This is a compounder (hopefully) for years to come. But I absolutely see why some would want a guy like Bruce Flatt at the helm.
"Serenity now, insanity later." - Lloyd Braun

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #355 on: January 05, 2018, 04:49:44 PM »
Please no.  Dont take Bruce away.....   He will get much better returns for shareholders of BAM over the next 15 years than if he took over the much bigger BRK. 

Besides, wouldn't you think that Bruce wants to keep building what he has been working on.  Thats where the fun is.  I am envious.  If only I could handle the stress and was a wee bit (okay, alot) smarter.

Well, there you got the answer to your question, augustabound!

Never say never - But I think between Mr. Buffett and Mr. Flatt, a material part boils down to price. I actually can't imagine those two persons getting to an agreement about the relative values of Berkshire and Brookfield - ever, if they tried - no matter how hard they tried. Lots of other obstacles added to that.
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Wabash02

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Re: BAM - Brookfield Asset Management
« Reply #356 on: January 06, 2018, 07:06:31 PM »
If I could work for/with anyone today, Bruce Flatt is certainly the person I'd pick.  Like jumping in with the BRK crew 30 years ago or so....


If Buffett is looking for an elephant to purchase why not acquire BAM and make Flatt the next CEO...

+1  I'd be a lot less worried about his inevitable retirement if he did this.

Please no.  Dont take Bruce away.....   He will get much better returns for shareholders of BAM over the next 15 years than if he took over the much bigger BRK. 

Besides, wouldn't you think that Bruce wants to keep building what he has been working on.  Thats where the fun is.  I am envious.  If only I could handle the stress and was a wee bit (okay, alot) smarter.

tiddman

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Re: BAM - Brookfield Asset Management
« Reply #357 on: January 07, 2018, 07:19:57 AM »
I've had large positions in both Berkshire and Brookfield for about 15 years.  One of the things I like about having both investments is that they are in many ways completely different, and yet each company is widely diversified and based on cash flow returns. 

Berkshire is almost entirely in the US, has long term holdings, organic growth, makes little use of debt or financing, and Buffett at the helm.  Brookfield is very international in multiple countries, is more transactional, makes heavy use of debt and financing, and the management team is about 10-15 people who are all considerably younger than Buffett and Munger.

I really don't think that Berkshire would have any interest in acquiring Brookfield or any of its subsidiaries, and it's interesting to me that even though both of them have broad reach, they almost never encounter one another or partner on any investments.  They just have totally different approaches. I think that Buffett and the Berkshire execs would be put off by Brookfield's use of debt and financing, and while Brookfield in some ways models its business after Berkshire, it could not do what it does without debt financing.  The secret to Brookfield's success is access to third party capital, but Berkshire has always generated its own capital via insurance companies.

I think both companies have a bright future but over the next 20 years I think that Brookfield probably has more opportunities for growth and a broader reach.  BAM has a market cap of only $43B, all of the Brookfield subs combined add up to around $70B.  Berkshire is nearly 10x as large with a market cap of $500B and its returns are still driven primarily by one person.  Brookfield is driven by a team of younger execs who each have their own opportunities for growth.  In fact I think Berkshire could learn something from Brookfield's culture and management style.

cubsfan

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Re: BAM - Brookfield Asset Management
« Reply #358 on: January 07, 2018, 08:11:52 AM »
I own them both as well - and I think this is a very insightful view contrasting the two.

investmd

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Re: BAM - Brookfield Asset Management
« Reply #359 on: January 07, 2018, 08:54:33 AM »
I own them both as well - and I think this is a very insightful view contrasting the two.

+1 Tiddman - thanks.

Seems like between owning BRK, BAM and FFH one could likely have a sustainable long term portfolio that over time generates substantially more than the S&P 500 and is easy to maintain. Thoughts?