Brookfield Asset Management, Inc. (USA) (NYSE:BAM)

Bathwater

Bruce Flatt

Savvy holding company of mostly commercial real estate properties. Might be some rough going in the immediate future but historically these guys have been good at what they do.

A potential Berkshire Hathway fron Canada..

Who could benefit from this situation? A bright mind with a steady cash-flow to work with.

BAM currently trades at a 25-35% discount to estimated NAV of $35-40 per share. That NAV includes (1) roughly an implied 6.5% capitalization rate on commercial properties, (2) a 15x cash flow multiple on hydroelectric generation assets, and (3) a 12x multiple on net fee income. BAM is very adept at deep value and cash flow oriented investing. Historically, BAM has thrived in times of economic uncertainty, poor credit quality and less frenetic M&A markets. These factors combined with BAM’s relatively unique corporate structure potentially favor the company’s ability to continue a strong pace of growth.

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.

I have followed this diversified company through 10 years of division purchases and sales. I think they are solid.

Of all the stocks I own this one is my favorite company, however I do not think this one is going to outperform MKL.

Bam is great for many reasons:

1. it's involved in high quality long life assets, that produce free cash flows ( Infustructure, asset managment, comercial real estate.)

2. The company has a great CEO who is value and investor conscience ( Bruce Flatt)

3. Bam ownes many investments outside the U.S. ( it's actually a Canadian company) and it invests all over the world, which should help invesors interms of currency exchanges, and of course high growth rates.

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Stock has been beaten down but rebounded nicely, nothing to hold this puppy back anymore, the sky is the limit! To the moon Alice!

The diversification helps the company as well as it has been driven down by the fall of Real Estate, as real estate recovers this gompany will grow. A Canadian Berkshire.

Testing out a portfolio with outperforms on stocks with tickers that spell words.

energy play with hydroelectric assets and real estate rebound

It is way undervalued.

Diverse company into property management and hydroelectric power. Alternate sources of power will be sought after more and more in the near future to accommodate the worlds growing need. Also, the stock has been doing exceptionally well despite the downturn in the real estate market. When the market rebounds, this company will be well positioned to really clean up.

I have been watching this for awile. I feel it will expand and make many happy

Diverse assets, great mangement team. The future looks bright for Brookfield.