Wednesday, April 23, 2008

Brookfield Asset Management CEO Speech - Bruce Flatt: Investing in Turbulent Times

Bruce Flatt, the CEO of Brookfield Asset Management, spoke recently about investing in the current environment. Brookfield invests in infrastructure assets (real estate, power plants, timber, etc).

Check out the video interview here.

Brookfield Asset Management stock performance

Flatt's Thesis (courtesy of Gurufocus):
1. never deviate from the following 7 principles.
2. execution. Success depends on ability to execute, is what separates BAM from competition. Remember this principle and put it into practice every day.
3. build with quality people. Business and life, do things you enjoy. Finding good people, team players most important thing, greatest asset of company. Brilliant but non team players can be divisive. BAM believes they have edge because of quality people.
4. invest against the common trend.
5. don't be moved by bad news or good news.
6. prudently finance your assets. Many people get #7 and #8 right (buy great quality asset), but then mess up by mismanaging finance and getting caught by liquidity crisis, overleveraging, etc. Best assets are worthless if you can't hold it to see another day.
7. invest for long term – buy under assumption we will own it forever. Never try to catch latest fad. Tax benefits, etc.
8. we like great assets, are willing to pay more for quality and location, and great fundamentals. We've paid more, but in premium locations like NY, sydney, london, etc. Irreplaceable assets and locations. Rarely buy cheap land where barrier of entry is low, easy to duplicate


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