Brookfield more cautious today than in 2009 as 'disruption' looms: CEO. Bruce Flatt talks about investment outlook going forward, why BAM purchased Oaktree, culture of BAM, why India is an opportunity today and why China is a good long term opportunity.
Brookfield more cautious today than in 2009 as 'disruption' looms: CEO - Latest BNN Bloomberg Interview
Saturday, November 30, 2019
Warren Buffett's latest attempt to put his cash to work is thwarted - TechData
Surprising move to see Warren trying to buy TechData a technology services company (software and hardware reseller and service provider) for $5B by outbidding APO
Maybe it was one of the investment managers under him. I think Berkshire should have invested more in Infrastructure like BAM over the last few years and bought European and Asian assets. I think waiting in cash forever is a risky bet if rates stay low for next 10 years.
Warren Buffett's latest attempt to put his cash to work is thwarted
Maybe it was one of the investment managers under him. I think Berkshire should have invested more in Infrastructure like BAM over the last few years and bought European and Asian assets. I think waiting in cash forever is a risky bet if rates stay low for next 10 years.
Warren Buffett's latest attempt to put his cash to work is thwarted
Swiss Firm To Develop India's Biggest Airport Near Delhi, Outbids Adani
Swiss Firm To Develop India's Biggest Airport Near Delhi, Outbids Adani. Long Runway for Investing in Infrastructure in India.
Swiss Firm To Develop India's Biggest Airport Near Delhi, Outbids Adani
Swiss Firm To Develop India's Biggest Airport Near Delhi, Outbids Adani
North America Power Generation Market Analysis - Natural Gas and Renewables Slug It Out - Relevant Tickers [BEP, TERP]
Natural Gas has overtaken coal with growth over last 2 decades to become top source. This was mainly due to depressed natural gas prices after shale revolution. All Coal Companies in US are essentially bankrupt now.
Renewables (Wind and Solar excluding Hydro) had started out with help from government subsidies and by 2030 will overtake coal powered generation in US. Canada already has all coal plants closed by 2010 itself. Renewables are growing at a faster rate and will one day ultimately generate highest amount of power in US with nuclear being supported from dying out by government for strategic reasons.
BEP, TERP have had great returns this year with total return of 100% and 65%. Over the last 20 years BEP has generated 17% total return on an annual basis and the company still has decades of growth and stable operations ahead due to increasing need for power (in India, China). Renewables is a $50T market globally over next decades. BEP is 70% Hydro and 30% Wind+Solar today but over next decade it will be 50% each and in long term 80% could be Wind+Solar due to environmental impact and cost of building new hydro dams being higher and continued cost reduction of wind and solar tech.
Analysis on North America Power Generation Markets
Renewables (Wind and Solar excluding Hydro) had started out with help from government subsidies and by 2030 will overtake coal powered generation in US. Canada already has all coal plants closed by 2010 itself. Renewables are growing at a faster rate and will one day ultimately generate highest amount of power in US with nuclear being supported from dying out by government for strategic reasons.
BEP, TERP have had great returns this year with total return of 100% and 65%. Over the last 20 years BEP has generated 17% total return on an annual basis and the company still has decades of growth and stable operations ahead due to increasing need for power (in India, China). Renewables is a $50T market globally over next decades. BEP is 70% Hydro and 30% Wind+Solar today but over next decade it will be 50% each and in long term 80% could be Wind+Solar due to environmental impact and cost of building new hydro dams being higher and continued cost reduction of wind and solar tech.
Analysis on North America Power Generation Markets
Brookfield CEO Bruce Flatt Interview May 2019
Brookfield CEO Bruce Flatt Interview May 2019 where he outlines rationale for buying 61.2% of Oaktree and thoughts on outlook for next few years.
Brookfield CEO Bruce Flatt Interview May 2019
Brookfield CEO Bruce Flatt Interview May 2019
Tuesday, November 26, 2019
LVMUY - Bernard Arnault could surpass Jeff Bezos and Bill Gates to become the world's Richest Person
Bernard Arnault could surpass Jeff Bezos and Bill Gates to become the world's richest person.
LVMUY - Bernard Arnault could surpass Jeff Bezos and Bill Gates to become the world's Richest Person
LVMUY - Bernard Arnault could surpass Jeff Bezos and Bill Gates to become the world's Richest Person
WSJ Management Top 250 - 2019
WSJ rates Top 250 Well Managed Companies of 2019. Not sure I agree with their methodology but here is the top 10 List. V, MA are ranked 21. 13. BA is ranked 31 in-spite of all the management missteps which is a joke!!!
BAM 20% Compounded from 2002 to 2019 Vs Historical Best Investors
BAM has returned 20% Compounded from 2002 to 2019. This is expectional return Vs Historical Best Investors and SnP 500 Return over last 17 years.
The outlook for BAM is brighter than ever after Oaktree Capital Franchise due to the lower interest rate environment projected over the next decade.
Brookfield Reveals Renderings for Its South Bronx Mega Project – Cost $950M
Brookfield Property has a lot of development projects that don’t generate cash today and cost money but they build value that Will show up in the future. Brookfield Property Group South Bronx project cost is $950M. The ownership will be partly attributed to BPY with the rest to Private Real Estate Funds of BAM.
Brookfield South Bronx Mega Project
Brookfield South Bronx Mega Project
S&P 500 Fantastic Run of 35% Since Market Bottom of 24 Dec 2018
The S&P 500 has had a fantastic run since the recent stock market bottom of 24 Dec 2018. It is up 35%+ with dividend reinvested over the course of last 11 months.
S&P today on 23 Nov 2019 is at 3135 up 27% from 2350 on 24 Dec 2018. Even compared to previous high of 2920 before the correction on a dividend reinvested basis it is up 12+%.
Not too many bargains to be found but low interest rates if they remain at these levels for longer term companies can continue to compile value and those earnings on a relative basis to bonds still mean stocks are the place to be.
S&P today on 23 Nov 2019 is at 3135 up 27% from 2350 on 24 Dec 2018. Even compared to previous high of 2920 before the correction on a dividend reinvested basis it is up 12+%.
Not too many bargains to be found but low interest rates if they remain at these levels for longer term companies can continue to compile value and those earnings on a relative basis to bonds still mean stocks are the place to be.
Friday, November 15, 2019
Fitch Assigns BAM A- Investment Grade Rating
Fitch Assigns BAM A- Investment Grade Rating with Stable Outlook.
Fitch Assigns BAM A- Investment Grade Rating
Fitch Assigns BAM A- Investment Grade Rating
BAM 3Q2019 Letter & India is #1 Investment Focus
BAM reported 3Q2019 Results on Nov 14 2019. India is #1 Focus for BAM
Read Comments from Anuj Ranjan BAM Middle East and South Asia HeadBAM Earnings Call Transcript
The stock market's 10-year run became the best bull market ever this month - 468% Return
Stock market's 10-year run became the best bull market ever this month - 468% Return
This still doesn’t mean anything as lot of value has been created by companies using innovation and compounding of capital Also compared to Govt bonds yielding -2% to +2% across Japan, EU to US stocks with earnings yields of 6% are still relatively speaking the better value.
The stock market's 10-year run became the best bull market ever this month
This still doesn’t mean anything as lot of value has been created by companies using innovation and compounding of capital Also compared to Govt bonds yielding -2% to +2% across Japan, EU to US stocks with earnings yields of 6% are still relatively speaking the better value.
Brookfield Snaps Up JPMorgan’s U.S. Mall Stakes in Multi-Billion Deal
Brookfield Snaps Up JPMorgan’s U.S. Mall Stakes in Multi-Billion Deal. Buys out JPM and NY Teachers Pension fund out of 4 malls and seeks 1 mall. Valuation including debt was $3.2B.
Brookfield acquired JPMorgan’s stakes in the Perimeter Mall in Atlanta, Park Meadows in Denver, Towson Town Center in Maryland and the Shops at Merrick Park in Coral Gables, Florida. NYSTRS was an investor in the shopping centers in Colorado and Maryland.
Brookfield Snaps Up JPMorgan’s U.S. Mall Stakes
Brookfield Snaps Up JPMorgan’s U.S. Mall Stakes
Friday, November 8, 2019
Brookfield’s Westinghouse Progress to $800M Annual EBITDA
Brookfield’s (BAM, BBU) Westinghouse makes progress to achieving $800M Annual EBITDA in the near term.
Westinghouse Electric Co. will acquire Rolls-Royce’s Civil Nuclear Systems and Services businesses in North America for an undisclosed amount under a “definitive agreement” announced on Sept. 26.
Westinghouse Electric Company announced the acquisition of NA Engineering Associates Inc., a Canadian-based provider of comprehensive engineering solutions including significant nuclear expertise. This acquisition supports Westinghouse's strategic growth initiatives by expanding the company's footprint in Canada.
Westinghouse Will Acquire Rolls-Royce’s Civil Nuclear Business
Westinghouse Acquires Canada's NA Engineering Associates
Westinghouse Electric Co. will acquire Rolls-Royce’s Civil Nuclear Systems and Services businesses in North America for an undisclosed amount under a “definitive agreement” announced on Sept. 26.
Westinghouse Electric Company announced the acquisition of NA Engineering Associates Inc., a Canadian-based provider of comprehensive engineering solutions including significant nuclear expertise. This acquisition supports Westinghouse's strategic growth initiatives by expanding the company's footprint in Canada.
Westinghouse Will Acquire Rolls-Royce’s Civil Nuclear Business
Westinghouse Acquires Canada's NA Engineering Associates
Brookfield Asset Management Closes PE Fund with $9B in Commitments
Brookfield Asset Management (BAM) Closes PE Fund with $9B in Commitments. BAM PE field sizes previously were $1B, $4B including Brookfield and child company commitments. Latest BCP V size was $9B including $3B from BBU. Out of this $9B $2.5B has been commuted for announces deals.
APO and BX have PE funds size of $18B to $20B so there is a long ways to go for BAM in PE.
EXPE at $100 on 3Q2019 Results Offers Intriguing Opportunity
Expedia (EXPE) at $100 on 3Q2019 Results Offers Intriguing Opportunity. Valuation down to $14B from $20B.
EXPE and BKNG both have 35-40% of Online Travel Agency (OTA) global market. OTA market is still only 15% of $1.7 Trillion Travel Market so there is still significant growth runway for these companies.
Main competitors as of today BKNG and AirBnB. There is potential for AMZN, FB, GOOGL, COST to look to enter this market but EXPE has built a sustainable network effect competitive moat around its business.
Expedia operates Core OTA Expedia business and VRBO which is a similar business model to AirBnB.
EXPE and BKNG both have 35-40% of Online Travel Agency (OTA) global market. OTA market is still only 15% of $1.7 Trillion Travel Market so there is still significant growth runway for these companies.
Main competitors as of today BKNG and AirBnB. There is potential for AMZN, FB, GOOGL, COST to look to enter this market but EXPE has built a sustainable network effect competitive moat around its business.
Expedia operates Core OTA Expedia business and VRBO which is a similar business model to AirBnB.
Saturday, November 2, 2019
SoftBank Vision Fund Could be In Trouble
SoftBank Vision Fund Could be In Trouble If the risky tech unicorn investments don’t turn around.
If a recession hits or interest rates raise it could be a catalyst.
$100B Vision Fund has $60B Equity and $40B debt and is invested mostly in in proven tech startups that consume cash (burn??) but don’t generate feee cash flow. These investments need to fund the 7% interest on the $40B debt.
We will find out how this goes in next 5 years.
If a recession hits or interest rates raise it could be a catalyst.
$100B Vision Fund has $60B Equity and $40B debt and is invested mostly in in proven tech startups that consume cash (burn??) but don’t generate feee cash flow. These investments need to fund the 7% interest on the $40B debt.
We will find out how this goes in next 5 years.
FB 3Q2019 Investment Update - $17.6B Revenue, $2.12 EPS, 29% Revenue Growth
FB 3Q2019 Investment Update - $17.6B Revenue, $2.12 EPS, 29% Revenue Growth. 2020 will be a fantastic year for FB as US Political ads in an election year and fading memory of security issues will surely show steep growth.
Users and Advertisers are stuck with FB as the economic moat becomes stronger over time. 2019 EPS will be $8 and 2020 EPS could be between $9 to $10 bases on fumes so at $193 FB now trades at 20 times Forward Earnings taking a $9.5 EPS midpoint.
Users and Advertisers are stuck with FB as the economic moat becomes stronger over time. 2019 EPS will be $8 and 2020 EPS could be between $9 to $10 bases on fumes so at $193 FB now trades at 20 times Forward Earnings taking a $9.5 EPS midpoint.
GOOGL 3Q2019 Update - 22% Revenue Growth to $40B Revenue
Alphabet (GOOGL) 3Q2019 shows company defies law of large numbers by posting 22% Revenue Growth to $40B Revenue. Adjusted EPS is trending to $12. 2019 Adjusted EPS could be $50 and 2020 EPS could be $60. Excluding $150 per share excess cash GOOGL trades for less than 20 times Forward EPS.
Company holds ground in advertising while making some headway in Cloud and is positioned to be one of the major players after AWS and Azure.
Company holds ground in advertising while making some headway in Cloud and is positioned to be one of the major players after AWS and Azure.
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