Author Topic: BAM - Brookfield Asset Management  (Read 509118 times)

cubsfan

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Re: BAM - Brookfield Asset Management
« Reply #230 on: October 22, 2017, 12:54:33 PM »
Just a suggestion - after reading the BAM thread of course, as you have.
 I found the last 2 capital market day presentations to be very helpful.
I think the 2016 is still posted on the BAM website, and the most recent one was done last month.
As you say, understanding BAM financials is indeed daunting, not unlike Berkshire. I just found it easier to see the
Forest from the Trees with the care that BAM management takes to explain their view of BAM's intrinsic value. Whether you
believe or not is another story. But I view BAM, like Berkshire, as somewhat a bet on management and their alignment
with shareholders. BAM is my 2nd largest position next to BRK.
« Last Edit: October 22, 2017, 01:12:25 PM by cubsfan »


John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #231 on: October 22, 2017, 02:36:14 PM »
Thank you for guidance here, cubsfan. I'll follow it.
”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

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #232 on: October 24, 2017, 12:21:34 PM »
All right, I'm down - laying straight out on the canvas - on technical knock-out.

BAM vs me, right now: 1 - 0.

Lesson learned [so far]: Start being aware of what kind of fight you are getting into: Is it boxing [, or - perhaps: kickboxing?]? - So far, I have got it really wrong, thereby getting kicked both in my balls, and in my butt.

This is the perfect stock to get a lesson about, if there are flaws to your way of work. Mine: I get carried away about what I read - here, there and everywhere - so, I do not take the time to properly document my findings properly, and because the "thing" is so complicated, I simply loose track, and end up out in the weeds, with no properly documented track backwards in my findings, thereby unable to connect the company specific dots.

The real question here - to stir your own personal pot - is: How do you define your personal "Too hard pile"?

- - - o 0 o - - -

This is so embarrasing to me. I hope it's at least entertaining to you.

- - - o 0 o - - -

- For me, time to get up on the horse again, for a round two, to get it right next time. - Soon [just a few days break]. I'm just as stubborn and persistent as a donkey.
”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

EricSchleien

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Re: BAM - Brookfield Asset Management
« Reply #233 on: October 24, 2017, 12:27:08 PM »
With BAM, I think it comes down to if you trust management or not. Otherwise, a lot of it is very black boxy.

For full disclosure, I'm a unit-holder in Partners Value Investments LP which has the majority of it's book value in Brookfield Asset Management.

cubsfan

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Re: BAM - Brookfield Asset Management
« Reply #234 on: October 24, 2017, 01:15:28 PM »
With BAM, I think it comes down to if you trust management or not. Otherwise, a lot of it is very black boxy.


I could not agree more with what Eric just said.

But I do also think you can see the revenue/profit/BV build from funds being raised and LT contractual fee arrangements.
'Bookings' turn into revenues - and the LT recurring nature becomes more obvious if you go at it a few times.

And if you believe that management is aligned with you with their 30% stake in the ongoing projects - it raises the comfort
factor on the "black box".

If not - then you toss it into the too hard pile.

EricSchleien

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Re: BAM - Brookfield Asset Management
« Reply #235 on: October 24, 2017, 01:16:15 PM »
With BAM, I think it comes down to if you trust management or not. Otherwise, a lot of it is very black boxy.


I could not agree more with what Eric just said.

But I do also think you can see the revenue/profit/BV build from funds being raised and LT contractual fee arrangements.
'Bookings' turn into revenues - and the LT recurring nature becomes more obvious if you go at it a few times.

And if you believe that management is aligned with you with their 30% stake in the ongoing projects - it raises the comfort
factor on the "black box".

If not - then you toss it into the too hard pile.

exactly

Uccmal

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Re: BAM - Brookfield Asset Management
« Reply #236 on: October 25, 2017, 06:39:27 AM »
BAM and its subsidiaries will deliver.  To an extent it is a black box but no more than Berkshire, or Fairfax.  Bruce goes to great lengths to try to explain the company but it is so vast. 

With BAM you can see the real assets (actual pictures) and understand them.  You can see how cheaply they get their debt.  You can see how easily they raise equity and money for their funds. 

Bruce Flatt and company is the closest thing I can imagine to a 52 year old Buffett which is when Berk. shifted to owning more and more full businesses. 

I think the platform they have built over the last 15 years is just hitting the sweet spot.  The fee income or carried interest is growing at a real quip.

But do I understand the whole company.  Not a chance.  They have said they will deilver 20% growth going forward for five years based on existing projects and money raises.  This does not even include larger future raisings. 

If you were to try and project economic growth areas, outside tech, I would say that BAM is right on target.  Energy, Urbanization, and Infrastructure would be my choices for future growth. 

Between BAM and BEP it is my largest position. 
GARP tending toward value

racemize

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Re: BAM - Brookfield Asset Management
« Reply #237 on: October 25, 2017, 06:45:45 AM »
BAM and its subsidiaries will deliver.  To an extent it is a black box but no more than Berkshire, or Fairfax.  Bruce goes to great lengths to try to explain the company but it is so vast. 

With BAM you can see the real assets (actual pictures) and understand them.  You can see how cheaply they get their debt.  You can see how easily they raise equity and money for their funds. 

Bruce Flatt and company is the closest thing I can imagine to a 52 year old Buffett which is when Berk. shifted to owning more and more full businesses. 

I think the platform they have built over the last 15 years is just hitting the sweet spot.  The fee income or carried interest is growing at a real quip.

But do I understand the whole company.  Not a chance.  They have said they will deilver 20% growth going forward for five years based on existing projects and money raises.  This does not even include larger future raisings. 

If you were to try and project economic growth areas, outside tech, I would say that BAM is right on target.  Energy, Urbanization, and Infrastructure would be my choices for future growth. 

Between BAM and BEP it is my largest position.

Ditto.  ~20% position.

longlake95

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Re: BAM - Brookfield Asset Management
« Reply #238 on: October 25, 2017, 10:22:02 AM »
I like BAM. A a lot. Big fan of Flatt & Co. But, I think it's fully valued here in the low 50's. For anyone buying at these levels - there's no margin of safety - or am I out to lunch on the fair value of BAM? What do you think it's worth?


racemize

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Re: BAM - Brookfield Asset Management
« Reply #239 on: October 25, 2017, 11:07:13 AM »
I like BAM. A a lot. Big fan of Flatt & Co. But, I think it's fully valued here in the low 50's. For anyone buying at these levels - there's no margin of safety - or am I out to lunch on the fair value of BAM? What do you think it's worth?

Mostly buying on the tailwinds and growth at these price levels.  Cheapest growth stock I know of.