Author Topic: BAM - Brookfield Asset Management  (Read 384725 times)

John Hjorth

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”In the race of excellence … there is no finish line.”
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John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #1001 on: May 08, 2019, 11:51:23 AM »
Ref. the exchange between Rod, Castanza and I a couple of days ago in this topic, here, I'll just mention the existence of a huge Brookfield website called Brookfield Properties, which is actually a virtual telescope and visualization, where it is possible to take a look at most of the properties owned by BPY/BPR around the world, with building specifications etc., marketing material and so on for each property - I have actually noticed that some of all those properties even have their own separate websites [not only the malls].

I think a friendly caution is appropriately in place here : If you suffer just the least of having an attraction to these kind of assets / "soft spot" for these thingies - which I personally do - then there is an event horizon around the website - so you need to fasten your seat belt before entering the website so you avoid getting sucked in! [ ; - D ] - To me, it's just a real estate portfolio soo impressive owned by BPY & BPR.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #1002 on: May 12, 2019, 07:03:58 AM »
wow - not a single comment on the quarter/letter by Mr. Flatt

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #1003 on: May 12, 2019, 07:51:38 AM »
wow - not a single comment on the quarter/letter by Mr. Flatt

Now you asked, so I'll give you one, ValueMaven,

Mr. Flatt is to me too promotional. [I'm still a buyer going forward, so there's a reason why I think so.]
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

Wabash02

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Re: BAM - Brookfield Asset Management
« Reply #1004 on: May 12, 2019, 07:54:36 AM »
re: no post's on the letter, I'll go...

The biggest thing that got me was that over the past two years they have taken 7 companies private and in doing so acquired over 55B of assets.  I've been mostly aware of each individual deal but somehow didn't realize they added up to that much.

The second most notable was the "cash available for reinvestment" growing from 2B today to 5B in 2023.  Wow!  It's like they've hit a punctuated equilibrium or power law type growth in cash generation.  If that's the case it would be hard to overestimate the how quickly that could continue to grow.

I'll admit I have somewhat of a 'leap of faith' as far as some of the accounting and corp. structure with BAM but I do have strong belief that the management is really focused on value per share creation and I'm really happy to have Bruce and Co. scouring for deals for me.




John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #1005 on: May 12, 2019, 08:12:19 AM »
ValueMaven,

Here we go :

... The second most notable was the "cash available for reinvestment" growing from 2B today to 5B in 2023.  Wow!  It's like they've hit a punctuated equilibrium or power law type growth in cash generation.  If that's the case it would be hard to overestimate the how quickly that could continue to grow.


This comment from Wabash02 is an example of Mr. Flatt being promotional - this particular projection is exactly that ... - a projection - and no, I back out of that again, and try to firm and narrow it in further here : a 2023 projection. Personally, I have no spreadsheets anywhere reaching out to 2023 on anything.

If you think Flatt is too promotional, how promotional do you think Warren Buffet is?

IMO Flatt is anything BUT promotional. He controls a business into which he and shareholders have extraordinary visibility because the assets they own are stable, cash flow generating, and BAM knows what levers they can pull to create value. The AM business is largely mgmt. fees, which are also very predictable. [b)His projections are perfectly reasonable, if not conservative.

- - - o 0 o - - -

Again, some of us here on CoBF may be invested in the same thingy, but the perception of risk among us may not be identical, nor even comparable. We all have our own choices to make, based on our personal perception of expected return vs. risk.

This is what makes this discussion interesting.
« Last Edit: July 21, 2019, 10:12:19 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #1006 on: May 12, 2019, 08:27:49 AM »
Great point all.  Also the comments on leverage not at BAM parent was interesting as well...he went into depth about that.  I also really do enjoy reading the subs letters as well.  I do not own BPY (I dont want the LP hence the REIT) - however if and when it pulls back it could be very interesting. 


vince

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Re: BAM - Brookfield Asset Management
« Reply #1007 on: May 12, 2019, 08:54:29 AM »
re: no post's on the letter, I'll go...

The biggest thing that got me was that over the past two years they have taken 7 companies private and in doing so acquired over 55B of assets.  I've been mostly aware of each individual deal but somehow didn't realize they added up to that much.

The second most notable was the "cash available for reinvestment" growing from 2B today to 5B in 2023.  Wow!  It's like they've hit a punctuated equilibrium or power law type growth in cash generation.  If that's the case it would be hard to overestimate the how quickly that could continue to grow.

I'll admit I have somewhat of a 'leap of faith' as far as some of the accounting and corp. structure with BAM but I do have strong belief that the management is really focused on value per share creation and I'm really happy to have Bruce and Co. scouring for deals for me.

The 2 billion of current fcf does not include any carry where the 2023 fcf target does include carry.  They say that currently they are, or should be earning 1 billion in carry but because many of the funds are early in their lives there is still the chance of clawback.  In 5 years out carry will be more of a run rate number.  So basically fcf is growing from 3 billion to 5 billion, at least that's how I understand it, which is a conservative estimate imo.

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #1008 on: May 12, 2019, 09:27:24 AM »
Somehow, ValueMaven got me started,

How about this?

Quote from: Bruce Flatt
In private equity, real estate and infrastructure, where both Brookfield and Oaktree are active, we intend to retain two premier brands in the marketplace – Brookfield as the mega-transaction brand (with $10 billion to $25 billion funds) and Oaktree as the boutique brand (with funds up to $5 billion). Similar to Volkswagen, which owns both Porsche and Lamborghini, we believe there is a market for these brands to co-exist, as they offer our clients different strategies delivered in funds of different sizes.

Personally, I just hope Mr. Flatt has mutually reconciled with Mr. Marks about publicly calling Oaktree a "boutigue". To me, a client is a client, unless you graduate clients by their investment capacity [= minimum requirements for capital commitments to funds].
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

villainx

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Re: BAM - Brookfield Asset Management
« Reply #1009 on: May 16, 2019, 08:06:34 AM »
When you comment too promotional, is that intended to be criticism of fluff talk, or positive that he's showing company capacity?

BAM, and subs, consistently have been giving 5-ish year projections for many years.  I don't have the skills to review if they consistently achieved their targets (plus all the moving parts of the spinoffs), but roughly remembering, they've been.