Author Topic: BAM - Brookfield Asset Management  (Read 510566 times)

Spekulatius

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Re: BAM - Brookfield Asset Management
« Reply #1560 on: May 15, 2020, 03:35:48 PM »
I t he case of a badly managed company like FFH it is bad. 

That’s pretty heretical talking here.  It might get you confined to the “praising the virtues and glory of FFH” or the politics section.
« Last Edit: May 16, 2020, 05:06:21 AM by Spekulatius »
Life is too short for cheap beer and wine.


Uccmal

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Re: BAM - Brookfield Asset Management
« Reply #1561 on: May 16, 2020, 04:46:47 AM »
I t he case of a badly managed company like FFH it is bad. 

That’s pretty heretical talking here.  Isn’t get you confined to the “praising the virtues and glory of FFH” or the politics section.

Yeah well.  I was a shareholder from 1996 to 2012 so I think I am qualified to comment honestly.  :-)

GARP tending toward value

Uccmal

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Re: BAM - Brookfield Asset Management
« Reply #1562 on: May 16, 2020, 04:51:31 AM »
I would also add Bombardier.
Family control turned into a liability.

No kidding.  And government wanting to keep a home grown air business at all costs with no accountability. 
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StubbleJumper

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Re: BAM - Brookfield Asset Management
« Reply #1563 on: May 16, 2020, 06:47:14 AM »
I would also add Bombardier.
Family control turned into a liability.

No kidding.  And government wanting to keep a home grown air business at all costs with no accountability.


The ultimate example in disastrous Canadian family control was probably Seagram's.  The Bronfman family had a strangle-hold on a large chunk of the booze-market, and then in one of those situations where talent seems to skip a generation, one of the up-and-comers in the family sold the booze business to get into the entertainment business.


SJ

chrispy

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Re: BAM - Brookfield Asset Management
« Reply #1564 on: May 16, 2020, 04:01:05 PM »
I think it is a classy move by Flatt to include various Brookfield leaders on applicable earnings calls

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #1565 on: May 24, 2020, 02:35:41 PM »
I don’t know If people are making a big deal out of Bam’s ownership structure, or not, but it seems similar (more or less) to what you get with Berk, FFH, FB, Goog, MSFT or any number of other companies where the primary operators control the voting shares either via volume or multiples.  In the case of a badly managed company like FFH it is bad.  In the case of a well managed company like Berk. It is good. 

I suppose if people think there is back room enrichment going on that is a different story.  A lot could be hidden in the back room I suppose but BAM has been operated like this for at least two decades.  That’s a long time to hide fraudulent activities.

Al, as usual you cut through all the BS quite quickly. This is the key point. It is not so much the ownership structure that matters but the quality of the management. I hope you are keeping well.

Al always do. However, it's not totally BS to keep a focused eye on the controlling superstructure, with the aim to assess it & make judgements about how it evolves over time.

From the BAM 2020 management information circular, p. 8 :

Quote
... In addition, Mr. Timothy Price, a current director, is not standing for re-election to the Board. ...

From the BAM 2019 management information circular, p. 5 & 6 :

Quote
... About Partners Limited

Partners Limited is an Ontario corporation that was formed in 1995 and whose principal business mandate is to hold shares of the Corporation, directly or indirectly, for the long term. As at April 29, 2019, there were 38 Partners, and they collectively own, directly or indirectly, the common shares of Partners Limited. The following individuals, who are each direct or indirect shareholders of Partners Limited, are also current directors of the Corporation or named executive officers, as defined by applicable securities laws (“Named Executive Officers”), of the Corporation for 2018: Jeffrey M. Blidner, Jack L. Cockwell, J. Bruce Flatt, Brian D. Lawson,
Brian W. Kingston, Cyrus Madon and Samuel J.B. Pollock (see “Compensation Discussion and Analysis” on page 45 of this Circular for further information on “Named Executive Officers”). Additionally, Messrs. Cockwell, Kingston, Lawson, Madon and Pollock are directors of Partners Limited.

Partners Limited’s operations are governed by a shareholders’ agreement (the “Partners Shareholders Agreement”) to which each shareholder of Partners Limited (each, a “Partners Shareholder”), and each Partner, is a party. Certain decisions of Partners Limited require the approval of a majority of the Partners (irrespective of shares held) and other decisions require the approval of a majority or supermajority of shares held by the Partners Shareholders. Specifically, Partners Shareholders holding two-thirds of the shares of Partners Limited can at any time require a Partners Shareholder to sell his, her or its shares. The Partners Shareholders Agreement also provides that: (i) unless otherwise approved by holders of at least two-thirds of the common shares of Partners Limited, any sale of an interest in Partners Limited will only be made to other Partners Shareholders; (ii) any changes to Partners Limited’s by-laws, election of directors, dividend policy, principal investments, the issue or redemption of shares or admission of other individuals as Partners Shareholders require the approval of those holding at least two-thirds of Partners Limited’s common shares; and (iii) Partners Limited will offer to purchase 5% of its outstanding shares annually based on the stock market price of the Class A Shares, subject to Partners Limited’s financial capability at the time. An important business objective of Partners Limited, as expressed through the Partners Shareholders Agreement, is to ensure orderly succession of ownership, including Partners Limited’s direct and indirect ownership in shares of the Corporation.

For estate planning and other reasons, many of the Partners hold their interests in Partners Limited through holding entities on an individual or joint basis. One such holding entity (“Partners Holdings”) was the original sponsor of Partners Limited and is owned, directly and indirectly, by Jack L. Cockwell, J. Bruce Flatt and Timothy R. Price, all long-serving executives or former executives of the Corporation. Although Partners Holdings itself owns a majority interest in Partners Limited, none of the shareholders of Partners Holdings nor any other Partners own, on a look-through, proportionate basis, 50% or more of Partners Limited. The shareholders of Partners Holdings, as well as Partners Holdings itself, are signatories to the Partners Shareholders Agreement and are all therefore bound by its terms. Irrespective of Partners Holdings’ ownership percentage in Partners Limited and any arrangements between the shareholders of Partners Holdings, the Partners have the contractual ability to exercise control over material decisions of Partners Limited. ...

- - - o 0 o - - -

So, the baton is [just [- structure complicated, or not]] passed on.
”In the race of excellence … there is no finish line.”
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petec

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FFH MSFT BRK BAM ATCO LNG IHG TFG CGT DC/A

Xerxes

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Re: BAM - Brookfield Asset Management
« Reply #1567 on: June 10, 2020, 03:10:31 PM »
https://www.reuters.com/article/us-brookfield-asset-commercial-real-esta-idUSKBN23H2UP

Pandemic will not be the end of office buildings, Brookfield CEO Flatt says

"But social distancing practices may ultimately be a boon for office building owners like Brookfield as companies seek to space out employees more. “We’ve had more tenants ask us for more space since this occurred than for less,” he said, “to accommodate more distancing."

Gregmal

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Re: BAM - Brookfield Asset Management
« Reply #1568 on: June 10, 2020, 03:55:23 PM »
https://www.reuters.com/article/us-brookfield-asset-commercial-real-esta-idUSKBN23H2UP

Pandemic will not be the end of office buildings, Brookfield CEO Flatt says

"But social distancing practices may ultimately be a boon for office building owners like Brookfield as companies seek to space out employees more. “We’ve had more tenants ask us for more space since this occurred than for less,” he said, “to accommodate more distancing."

I continue to be amazed by their balls. Yes, of course some of it is talking their book; but they also continue to put their money where their mouth is....in office and retail.

Personally owning select office and a mix of retail RE, I kind of agree, but it will be interesting nonetheless to see how this plays out. These are two of the most hated areas of the market, and have been for some time even prior to COVID.

Shane

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Re: BAM - Brookfield Asset Management
« Reply #1569 on: June 11, 2020, 06:34:04 AM »
https://www.reuters.com/article/us-brookfield-asset-commercial-real-esta-idUSKBN23H2UP

Pandemic will not be the end of office buildings, Brookfield CEO Flatt says

"But social distancing practices may ultimately be a boon for office building owners like Brookfield as companies seek to space out employees more. “We’ve had more tenants ask us for more space since this occurred than for less,” he said, “to accommodate more distancing."

I have to say... I find this to be concerning.  I think it is emotionally difficult for anyone in an entrenched position to recognize secular shifts that work against them.  How can this not be a negative for commercial office space?  At my firm, we have found employees are just as productive if not more productive at home.  Individuals with young children do seem to prefer coming into the office to get some peace and quiet, but the rest of the firm has now voted to come in ~3x per week on average even after the Pandemic is over.  We've sent everyone printers and monitors to set up home offices recognizing that this is a very long-term trend.  I hear the same from nearly everyone in my network.  We won't get rid of an office, but we won't prioritize it as a cost anymore either and we will likely downsize.

Additionally - aren't Twitter and Facebook permanently shifting to remote work?
« Last Edit: June 11, 2020, 07:00:14 AM by Shane »