February 13, 2009
– Comments (2) |
RELATED TICKERS: BAM
but its been crushed this year. It may become the next Berkshire in the future but its crushed my hopes so far this year. Wish I never heard of this company.
I have been in BAM, RM, for over 3 years. The managment is great and focused on long term cashflow. They buy and manage long lived assets with easy to project cashflows and the assets are difficult to compete with. That is the good side.
The bad side is the finanical are almost impossible to understand. I have spent A LOT of time on them and still not 100% sure I understand everything they are doing. (How they structured the spinoff of some real estate)
They also were talking about buying back shares because managment thought BAM was the best place to put money to work. Not sure if this happend, look at share outstanding.
If you are short term this may not be a good stock but long term I think it is pretty good.
I got out of BAM a couple of years ago after an amazing ride, but would not be tempted on that one at this stage because of the BHS side. BIP is a terrific long-term play, and I suppose BHS downside has to be considered limited from here. I agree that BAM's management is second to none, but they made some key errors last year buying back tons of BHS stock above $13. I haven't looked at the earnings yet, but I imagine write-downs from those purchases and BHS property values must be a big part of their woes.