Author Topic: BAM - Brookfield Asset Management  (Read 512203 times)

Spekulatius

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Re: BAM - Brookfield Asset Management
« Reply #290 on: November 18, 2017, 11:26:47 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.

Owning BAM. Is like skimming froth from the top. If there is enough froth and there is going to be more froth in the future, it is quite obvious what is the best vehicle to own.
Life is too short for cheap beer and wine.


John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #291 on: November 18, 2017, 11:39:47 AM »
... Is like skimming froth from the top. If there is enough froth and there is going to be more froth in the future, it is quite obvious what is the best vehicle to own.

Hilarious, Spekulatius. Serious note here: Yes, the fees for BAM in this whole system actually matters a lot. Discussed at length earlier in this topic.
”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 #292 on: November 19, 2017, 08:45:31 AM »
This topic started on October 11 2011. For those fellow board members who have caught interest in BAM after that date [certainly includes me], there is actually a topic in the General Discussion forum under the topic title "BAM BAM" running active in the period October 20 2010 to January 20 2011. [ * ]

There are a lot goodies posts in that particular topic [absolutely also good mood and good humor!], incuding a link to an old interview of Mr. Flatt, which tries to reveal some shades of him on a personal [and private] level.

- - - o 0 o - - -

How about GGP? - I mean should we discuss GGP in this topic, based on the actual situation with an offer from BAM? GGP is mentioned in many topics here on CoBF, but not in its own separate topic in the Investment Ideas forum.

I have been reading up on GGP three evenings within the least week or so.

- - - o 0 o - - -

[ * ] That's actually the nickname for the cat here used by the Lady of the House.
« Last Edit: November 19, 2017, 08:49:59 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

WhoIsWarren

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Re: BAM - Brookfield Asset Management
« Reply #293 on: November 20, 2017, 03:18:07 AM »
In today's Financial Times, article mainly about BIP (sorry if this is posted in the wrong place).

Specifically, the article highlights a natural gas pipeline asset that is owned jointly by BIP and Kinder Morgan, where BIP values the asset 70% higher than its partner.  When asked to explain the differential, BIP management explains the difference between IFRS v's US GAAP accounting (fair value v's at cost).  This isn't the first time we've seen this.  In theory this makes sense and all could be dandy, but it does raise the prospect of aggressive accounting valuations.

Author also mentions BIP's Bermudan incorporation, which affords less protections to investors.  Overall the tone of the article is negative, without having anything concrete.

https://www.ft.com/content/7efb9a6a-cbbc-11e7-aa33-c63fdc9b8c6c

chrispy

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Re: BAM - Brookfield Asset Management
« Reply #294 on: November 20, 2017, 04:11:45 AM »
This same piece has come up in Barron's and WSJ. it is addressed during BIP earnings call in the summer. Q2 I guess

chrispy

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Re: BAM - Brookfield Asset Management
« Reply #295 on: November 20, 2017, 02:04:30 PM »
John,

I plan on digging back into those old threads.  Thanks for mentioning BAM BAM.

BPY is becoming pretty interesting at these prices.  It has done nothing but drop since the announcement. 

This is an interesting article about how GGP got to where they are:

https://turnaround.org/sites/default/files/5.%20Paper%20-%20GGP%20-%20NYU.pdf

Their problems for the past 10+ years have only been due to debt and not the quality of their properties.

Last tuesday night I went to a GGP mall.  It was about 7pm and the mall was active considering the day and time.  The areas were very well decorated for the holiday season. The food court had ~75% of the tables occupied.  Didnt see a single vacancy or sign of distress.  This particular mall has been renovated extensively over the past 5 years to include the eating, entertainment, and residential living that BPY/GGP so frequently discuss. 

I do not feel comfortable investing in particular brick and mortar retailers but that is where Brookfields experience comes into play.  I can see why institutional funds are willing to give them so much $$$

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #296 on: November 26, 2017, 10:57:30 AM »
Thank you a lot for sharing that particular piece from the turnaround site, chrispy.

Finally, I had the time this afternoon to read it in whole. It's an awesome study of a friggin' big blow up. Almost like reading a very good novel or a crime story.

Somehow, I love when professors, not eating canteen food, because they are too cheap, and bringing their lunch boxes forth to work and back every day [with no skin in the game, with fixed salaries, fixed pensions schemes - most likely devoted to indexing] - devote all their time into an in depth study like this, with absolutely no time constraints on the study - in the name of "science", thereby providing all the nitpicking with regard to sources in notes etc. [ * ]

- - - o 0 o - - -

One of the best descriptions I have ever read about how bad things can go, if you operate in to a turmoil with a balance sheet mismatch.

- - - o 0 o - - -

[ * ] Perhaps I should add "[<-?]" after "skin in in the game" and several other places in this post. - And more professor slapping here: I remember many years ago, when I was a B.Sc. student in economics, I had a meeting with my law professor, knocked on the door to his office - at time, and got invited in by him, despite he was in the middle of something. He started the meeting out with saying - with a big smile! : "This is my most important research tool!" [holding his scissors in his right hand...].
« Last Edit: November 26, 2017, 02:00:18 PM 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

maxthetrade

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Re: BAM - Brookfield Asset Management
« Reply #297 on: December 12, 2017, 05:05:29 AM »

cubsfan

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Re: BAM - Brookfield Asset Management
« Reply #298 on: December 12, 2017, 06:16:57 AM »
Max - thanks for posting. Excellent interview. I love this guy!

longlake95

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Re: BAM - Brookfield Asset Management
« Reply #299 on: December 12, 2017, 08:09:41 AM »
Flatt is truly a cut above most CEO's.