US Markets | In a frothy market, Brookfield’s Bruce Flatt backs value over fashion for long-term gains

With global equity markets swinging sharply on rate expectations, geopolitical risks and shifting sector narratives, Brookfield Asset Management CEO Bruce Flatt’s long-standing investment philosophy appears especially relevant for today’s environment. Flatt continues to stress that long-term wealth creation comes not from chasing popular themes, but from identifying genuine value where others are reluctant to invest.

Speaking on Brookfield’s investment approach a few years ago in a presentation made at the Talk @ Google, whose video is available on YouTube, Flatt consistently highlighted the importance of moving away from crowded trades and focusing instead on areas where capital is scarce. In periods when investor sentiment is driven by short-term news flow and momentum, he believes the biggest opportunities often lie in segments that are temporarily out of favour.

Flatt’s framework centres on profitability and durable cash flows rather than headline growth. He has repeatedly argued that growth, by itself, does not necessarily translate into value creation. Instead, Brookfield prioritises assets and businesses that can generate steady returns over long periods, even if they are not part of the market’s prevailing narrative.

A key pillar of this strategy is investing in real assets such as infrastructure, real estate and renewable power, which tend to offer long-term contracted cash flows and inflation protection. According to Flatt, these assets provide resilience during market cycles and can help smooth volatility when traditional equity markets are driven by shifting risk appetite.

In an environment where investors are increasingly influenced by fast-moving trends, Flatt also warns against being swayed by popular stories or excessive optimism. He has noted that successful investing often requires a contrarian mindset of being willing to commit capital when others are pulling back, and maintaining discipline when markets become overheated.

Another core principle of Brookfield’s approach is buying quality assets, even if that means paying a modest premium, while ensuring they are acquired below long-term replacement costs. This, Flatt believes, provides a margin of safety and improves the odds of superior returns over time.
With market volatility expected to remain elevated amid global policy shifts and economic uncertainty, Flatt suggests long-term investors to stick to fundamentals, focusing on cash generation and resisting the urge to follow market fashion. Over time, he believes, patience and value-driven discipline continue to be the most reliable drivers of sustainable returns.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)