Brookfield Asset Management.

I have not really followed the Brookfield story that much which is a shame because I’m located in Canada. It seems as though Bruce Flatt is taking on a more public persona. He recently gave a talk at Google. I have been going through the Austin Value’s megadoc on Brookfield and it has been a good way to get up to speed. Of course I did not read all 13000 pages but you get the point after a few hundred pages. Most important is to read the Shareholder letters in chronological order from the Brascan days till Q2 2018.

Anyway I put together a few slides (see here: Brookfield). It’s just me repurposing a bunch of Investor Relations stuff and adding my own words. I’ve noticed that once you put things in your own structure it becomes an adhesive between your ideas and your memory.

Post Q2 2018 some changes may have happened so I probably do not have everything to the nth decimal place but I think I’m still right directionally. I’ve written reports in the past that were dozens of pages long but 100% wrong.

Also did not really talk about risks. The big one will be rates rapidly moving against Brookfield. This is somewhat mitigated by the long dated debt and their value approach. In addition, if you look back to the GFC period, they were preparing for all the carnage in like 2005-2006 and for the most part stayed away from all the securitization craziness.

The two ways to play this are either through BAM or discount closure at BPY.

Feedback welcome as I just entered the door at the Brookfield complex and as always, not investment advice.


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