The Knowledge Project with Shane Parrish

#221 Bruce Flatt on Value, Discipline, and Durability

1046 snips
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.
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INSIGHT

Investing Fundamentals

  • The fundamentals of investing remain unchanged: buy quality assets, hold long-term, and earn cash returns.
  • The environment has changed with the rise of passive investing and new asset classes.
INSIGHT

Changing Investment Landscape

  • 50% of Brookfield's current investments didn't exist as an asset class 20 years ago.
  • Private enterprise now builds infrastructure like data centers and cell towers, unlike governments previously.
INSIGHT

Passive Investing and Private Equity

  • Passive investing creates disparities between market price and underlying asset value.
  • This allows Brookfield to take undervalued companies private, capitalizing on market inefficiencies.
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