Subject: Re: Diversifying away from Berkshire
Unlike Berkshire, it (BAM) has a rapidly-growing business investing other people's money in exchange for fees, a business that has thrived during a decade of record-low interest rates. How the future treats such private equity businesses generally is apparently in some doubt, as Mr. Market's treatment of alternative asset managers generally currently suggests.

There are several things I like about Brookfield compared with BAM.

o It is truly international having operating organizations in several countries outside of the USA. That broadens the opportunities.

o I has the demonstrated capabilities to buy a distressed business/property, turn it around, and sell it for a profit. And it's willing to do so as opposed to BRK's 'buy forever' approach. Some of the BRK subs do have some of this capability, but nothing on the scale of Brookfield.

o It is also widely diversified if you buy the package. And it's also big and strong, having demonstrated this over decades. Not an advantage vs BRK, but not a disadvantage.

o It taps a huge source of funds - pensions and institutions. While not as low cost as BRK's earnings and low/no low cost float, it is probably larger and more controllable. They can choose how much they bite off to chew. And rinse and repeat. Plus they add leverage by being partially public in the subs.

o The 'fee management' recent reorganization provides a low capital intensity, good margin, fee flow not unlike, say, Google. Expanding, you can pick and choose which segments most interest you. With BRK you buy the package.

o Both managements have a big chunk of their net worth in the company.

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Now I'm not talking about which is the better buy right now. And BAM & subs are certainly more complex to value than BRK. Also harder to understand, with a seemingly long term suspicion that the management manipulates the numbers to their benefit. Yet they've delivered very good returns to their investors for decades.

I'm just suggesting to look at what differentiates them in looking for alternate investments to BRK.

Not a well crafted post I fear - more a stream of consciousness of things I've thought about BAM over the years. I missed a damn good opportunity a few years ago to switch funds from BRK to BAM. But I was more concerned about some health issues than investing - and the fleeting opportunity passed and hasn't repeated.