Statement on Brookfield Asset Management and its family of subsidiaries | Value Investing News

Statement on Brookfield Asset Management and its family of subsidiaries

  • Too complex.
  • Bruce Flatt is undoubtedly a genius (in John Malone style), but compare Brookfield with the relative simplicity of Berkshire (despite Berkshire controlling a much larger asset base) and there is such a huge night and day difference.
  • My general issue with large conglomerates with lots of partially owned but controlled subsidiaries is that you run into agency issues with the boards having common members, but having to guess which arm of the company is going to be advantaged (or whether it mostly flows to management).
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