Author Topic: BAM - Brookfield Asset Management  (Read 512214 times)

flesh

  • Sr. Member
  • ****
  • Posts: 334
Re: BAM - Brookfield Asset Management
« Reply #280 on: November 11, 2017, 12:10:31 PM »
Thanks a lot for guidance, Cigarbutt!

It's actually very much appreciated.

Personally, and so far, I have come to the interim conclusion, that the problem here, with BAM, for my part, most likely is inside my head: The brain wash, that took place when I was younger, to become a CPA, and thereby - by definition - a nitpicker.

I have now been fighting this propensity & bias for more than 5 years, with the aim to become better at investing.

Great insight John!


John Hjorth

  • Hero Member
  • *****
  • Posts: 3144
Re: BAM - Brookfield Asset Management
« Reply #281 on: November 11, 2017, 04:17:01 PM »
Is this one a sure double in 5 years?

BAM 2017Q3 out Thursday this week. In short, just growth all over the place, while the company continues to do its thing.

I get dizzy when I start to think about what this behemoth might look like 10 years from now. I'm still on the school bench with regard to finding a way to study and follow this company going forward.

Personally, I do not take this question of yours, Plato, too literally - because of your post in this topic earlier [post #257 in this topic, of October 30th 2017]. At least I have to relate to the questions, that you posted that particular day. Your questions are - at least to me - relevant. It's to me about thinking of the downside scenario of the BAM growth story.

Growth stories may - or may not - be a great tool to do the magic to make capital disappear.

”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

  • Hero Member
  • *****
  • Posts: 3144
Re: BAM - Brookfield Asset Management
« Reply #282 on: November 11, 2017, 04:50:24 PM »
Thanks a lot for guidance, Cigarbutt!

It's actually very much appreciated.

Personally, and so far, I have come to the interim conclusion, that the problem here, with BAM, for my part, most likely is inside my head: The brain wash, that took place when I was younger, to become a CPA, and thereby - by definition - a nitpicker.

I have now been fighting this propensity & bias for more than 5 years, with the aim to become better at investing.

Great insight John!

It's the sad truth, flesh. At least I'm now very much aware of it, so there is plenty of room for improvement.

- - - o 0 o - - -

Now back to BAM.
« Last Edit: November 12, 2017, 05:14:11 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

james22

  • Hero Member
  • *****
  • Posts: 599
BRK, BAM l SV, EM l Energy l Fannie Mae, Freddie Mac l Stable Value, Cash Value of Pension

bookie71

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 973
Re: BAM - Brookfield Asset Management
« Reply #284 on: November 12, 2017, 12:14:23 PM »
Quote
Thanks a lot for guidance, Cigarbutt!

It's actually very much appreciated.

Personally, and so far, I have come to the interim conclusion, that the problem here, with BAM, for my part, most likely is inside my head: The brain wash, that took place when I was younger, to become a CPA, and thereby - by definition - a nitpicker.

I have now been fighting this propensity & bias for more than 5 years, with the aim to become better at i
.
Being a CPA and having had my own firm for over 45 years, you are not unique other than you recognize the problem.  It seems to go with the profession.  We aren't caused "bean counters" for nothing.

We want to rely on ratios and "rules of thumb" such as working capital should be at least 2.  Then we ignore the "exceptions" such as fast food etc.

I'm not sure if there is a cure other than being aware of the problem and working at it all the time.
 
Always remember, Pigs get fat and hogs get slaughtered.

chrispy

  • Sr. Member
  • ****
  • Posts: 392
Re: BAM - Brookfield Asset Management
« Reply #285 on: November 14, 2017, 04:46:27 AM »
What do people think about BPY buying the rest of GGP?  As they owned ~1/3 of the business anyway it is not too much of a leap.  They are obviously very familiar with GGP's operations and comfortable with what they see.

BAM believes BPY is undervalued, and BPY believes GGP is also undervalued.  BPY has a yield of 5+ while GGP has 4%.  It is stated that BPY is willing to pay for the rest of the deal with cash or BPY shares.  If they issue BPY shares that they believe are undervalued, how accretive is the deal? 

BPY mentioned on the recent call that they are recycling 1-2 billion, and possibly more, in northeast US office space.  I am assuming they would use some recycled assets and money from funds.  BAM at the investor day mentioned they are creating a fixed income like fund, using lower but stable yields for their clients and that there is quite a bit of demand for it.  Could work for this.

In the most recent call it was mentioned that buying anchor properties and converting them realized 20% levered returns with minimal risk.  The end goal I am guessing would be to recycle individual malls somewhere down the road.

Uccmal

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 3791
Re: BAM - Brookfield Asset Management
« Reply #286 on: November 14, 2017, 06:56:19 AM »
What do people think about BPY buying the rest of GGP?  As they owned ~1/3 of the business anyway it is not too much of a leap.  They are obviously very familiar with GGP's operations and comfortable with what they see.

BAM believes BPY is undervalued, and BPY believes GGP is also undervalued.  BPY has a yield of 5+ while GGP has 4%.  It is stated that BPY is willing to pay for the rest of the deal with cash or BPY shares.  If they issue BPY shares that they believe are undervalued, how accretive is the deal? 

BPY mentioned on the recent call that they are recycling 1-2 billion, and possibly more, in northeast US office space.  I am assuming they would use some recycled assets and money from funds.  BAM at the investor day mentioned they are creating a fixed income like fund, using lower but stable yields for their clients and that there is quite a bit of demand for it.  Could work for this.

In the most recent call it was mentioned that buying anchor properties and converting them realized 20% levered returns with minimal risk.  The end goal I am guessing would be to recycle individual malls somewhere down the road.

I just bought some shares in BPY last week.   Just a few with cash I had in my registered accounts, and TFSA.  Just in time for the stock to drop on this bid.  They did mention recycling urban malls into offices and so forth.  They appear to have a plan in mind for these spaces. 
GARP tending toward value

bizaro86

  • Hero Member
  • *****
  • Posts: 1335
Re: BAM - Brookfield Asset Management
« Reply #287 on: November 14, 2017, 02:53:15 PM »
From BAM perspective, BPY pays fees and GGP doesn't, so increasing BPY size is a benefit.


no_free_lunch

  • Hero Member
  • *****
  • Posts: 1734
Re: BAM - Brookfield Asset Management
« Reply #289 on: November 18, 2017, 08:04:43 AM »
From BAM perspective, BPY pays fees and GGP doesn't, so increasing BPY size is a benefit.

I think this really nails it.  I recall earlier in this thread somebody mentioned that it is best to hold BAM over the subs.  It just seems you have the most options/flexibility with the parent.