The Knowledge Project with Shane Parrish
#221 Bruce Flatt on Value, Discipline, and Durability
Apr 1, 2025
Bruce Flatt, CEO of Brookfield Asset Management, dives into the company’s long-term investment strategies that have achieved impressive 19% annualized returns. He emphasizes downside protection and identifies key trends like digitalization and the global energy transition. Flatt explains Brookfield's unique patient capital approach, which allows them to capitalize on extraordinary opportunities while managing risks effectively. Additionally, he sheds light on the intricacies of Brookfield's corporate structure, showcasing how it's designed for operational flexibility and strategic investment.
01:20:54
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Quick takeaways
- Brookfield's investment strategy prioritizes downside protection and patient capital, achieving 19% annualized returns over 30 years.
- The conversation highlights key market trends including digitalization, global energy transition, and reindustrialization that are reshaping investment opportunities.
Deep dives
The Evolution of Investment Fundamentals
Investing fundamentals have remained unchanged, focusing on acquiring quality assets or businesses and holding them for extended periods to earn cash returns. However, the environment surrounding these fundamentals has shifted significantly, particularly in public markets. The rise of passive investing and indexing has transformed how investments trade in the market, leading to a situation where many companies were overlooked due to their lack of representation in indices. Currently, about 50% of the assets that investors engage with today did not exist as investment classes two decades ago, signaling a substantial shift in investment opportunities and frameworks.
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