$21.84
0.55 (+2.58%)
Brookfield Asset Management, Inc. (USA) (BAM)
CAPS Rating:
A global asset management company, with a primary focus on property, power and infrastructure assets.
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Brookfield Asset Management is a best-in-breed asset management company focused exclusively on delivering value to shareholders by producing increasing, recurring high quality free cash flow. The recent pull back, which I believe is mistakenly predicated on problems in the U.S. housing and Commercial Real estate markets, provides a very compelling and safe opportunity to buy into what I consider to be one of the pre-eminent wealth creation companies in the world today.
BAM's basic strategy is to opportunistically aquire and manage long-lived assets, at reasonable prices, that generate sustainable and growing free cash flow, and finance them with cheap debt and equity financing, and manage them actively to maximize total returns. Asset classes include commercial and residential property, financial assets, power generation and transmission, timberlands, and renewable energy.
Currently trading at around 10x free cash flow as well as at a decent discount to NAV (which is ludicrous relative to this businesses long term earnings power)...BAM offers investors a truly compelling opportunity for patient, long term investors.
Just a question as am looking at this for first time. Could/would this company benefit from carbon credits related to it's hydroelectric power interest?Thanx in advance.
Gotta love BAM's basic strategy. Fill your portfolio with companies like this that can increase their cash flows at ridiculous rates over the long term and you will see your portfolio value touch the sky. BAM is probably going to get hit kind of hard in the near term (due to credit crisis and frozen commerical real estate markets) but this seems like as close to a no brainer over the long term as one can get. When the odds are in your favor(in this case VERY significantly) bet the house!
Possibly, but I have not really given it any thought (or done any serious due dilligence on the question). It is certainly possible that BAM's savvy management could find ways to profit from cap and trade here in the us, but it is important to note that the vast majority of BAM's energy related assets are located outside of the US (and therefore would not...I think...be able to sell credits). Also, Brookfield is a Canadian company.Keep in mind that I have no idea how the underlying dynamics of cap and trade would work across borders, etc. and have not seriously studied it. I do understand the basic idea and the consequences of it..which I think would be disastrous. As Charlie Munger said a few days ago...cap and trade is "monstrously stupid" and basically "demented". I agree, let's just hope it doesn't happen (for everyones sake).