Replies to post #176 on Brookfield Asset Management Inc (BAM)

[Investorman]

In one respect it is imaginary. Arbitrary value isn't real money unless it is converted to such..... and if everyone decides to sell at the same time without enough buyers then it doesn't exist.

Much like my saying I will give you $100 for an hour of your time and then when you tell me you will be here Monday morning at 8:00am I tell you I can only give you $50. You haven't lost $50 because you never really had it except as a future promise.

[Investorman]

The experts disagree over how long it takes to recover from a bear market.

The financial firm T. Rowe Price found that in the past five bear markets going back to 1976, the longest it took for stocks to recover from their peak and then provide a 10 percent annual compound return was eight years. The shortest was five months.


Of course this assumes that you bought all of your stock at the peak which is unlikely.

[Investorman]

In late June, safevalue noted that Brookfield is "involved in high quality long life assets, that produce free cash flows ... the company has a great CEO who is value and investor conscience ( Bruce Flatt)."

An earlier pitch from TMFMattyA in March shares that bullish sentiment, highlighting the stock's cheapish valuation (which, like everything else, is even cheaper today):

Finally, BAM is on sale. You just don't get too many opportunities to invest in a management team like this at a reasonable price. This company controls a vast portfolio of quality, stable, cash-producing assets, and features a management team that really knows how to allocate capital prudently. Like [Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B)] and [Markel (NYSE: MKL)], I think this is one of those few companies that you can hold onto forever.