Brookfield Asset Management Inc. (USA) (BAM): Why Canada’s Warren Buffett Is Bullish on America

Page 1 of 2

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

U.S. stocks went back to their losing ways on Friday, with the S&P 500 (INDEXSP:.INX) down 0.4%, while the narrower, price-weighted Dow Jones Industrial Average (Dow Jones Indices:.DJI) lost 0.3%. Four out of five days were losers this week, as stocks broke a six-week streak of winning weeks with their worst performance since June.

Brookfield Asset Management Inc. (USA)Today’s losses were enough to see the CBOE Volatility Index (VIX), Wall Street’s “fear index,” rise another 5.3%, to close at 13.41, after bottoming out at 11.84 on Monday. (The VIX is calculated from S&P 500 option prices, and reflects investor expectations for stock market volatility over the coming 30 days.)

With no other obvious factors to explain the week’s stock market performance, the narrative that is most commonly cited is that of “taper fears” relating to a potential reduction in the pace of the Fed’s monthly bond purchases (“quantitative easing”). That the simple possibility of this tapering should weigh so heavily on the market is rather odd, from a long-term fundamental investor’s perspective.

Canada’s Warren Buffett — an investor worth listening to
Speaking of long-term fundamental investors — it’s so hard to spot that species in the financial media today, that when a member of the species does make an appearance, it’s well worth paying attention.

There was one spotted today, as Bruce Flatt, the CEO of Canadian investment firm Brookfield Asset Management Inc. (USA) (NYSE:BAM) appeared on CNBC to discuss his outlook and approach. A dedicated and highly successful value investor, Flatt is sometimes referred to as a Canadian Warren Buffett. Here are some of the highlights of the discussion:

Bullish on America

We’re very bullish on America, and the economy is doing extremely well. We put a lot of money through 2009, 2010 and 2011. Housing is coming back. Retail is coming back. [The] shale gas revolution is doing a lot of things. Manufacturing is coming back. So we’re very bullish on everything in America — you can see it in our results today… we’re still putting money into America… we have $100 billion in assets inside the United States.

Achieving good returns: Keep it simple

We’re investing across the real asset sector; these are operating businesses that everyday just produce cash. We continue to do that and America is a good place to do that today.

Interest rates are extremely low, as you know, at 2%-3% and we can earn [our investors] 12%-15% consistently over time. If you buy right, you don’t’ make too many mistakes; therefore that’s an extremely attractive return for an institutional client.

You don’t have to pick the bottom of the market. You just need to earn a decent return over a long period of time.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!