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Brookfield CEO: AI Bubble, Opportunities, and Risk | Connor Teskey

Overview

Shownote

Highlights

Transcript

Chapters

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Brookfield CEO: AI Bubble, Opportunities, and Risk | Connor Teskey

The Knowledge Project

Mar 17
The Knowledge Project

The Knowledge Project

Mar 17
OverviewShownoteHighlightsTranscriptChaptersPins

Shownote

Connor Teskey is the CEO of Brookfield Asset Management, one of the world’s largest investors, managing about a trillion dollars across infrastructure, power, real estate, private equity, and credit.  In this exclusive interview, his first as CEO, we expl...

Highlights

In his first major interview as CEO of Brookfield Asset Management, Connor Teskey offers a candid, behind-the-scenes look at how one of the world’s most influential investment firms thinks, operates, and evolves.
03:50
One needs to be skilled in building teams, communicating, and interacting with clients, LP partners, and counterparties, beyond just investment.
04:15
The focus on high-quality global economy backbone assets has been consistent, but the specific assets have evolved over time, like from hydro dams to solar and nuclear.
07:24
Do deals when they feel 90% right—don't seek absolute certainty
15:11
They lock in construction cost, revenue off-take, EPC, and financing contracts simultaneously to eliminate volatility
19:00
Brookfield walks away from deals primarily due to poor revenue constructs or weak corporate credit counterparties, and excessive construction risk relative to return
26:09
Brookfield runs like a partnership, with constant interaction between different business verticals and no silos
29:34
By buying high-quality businesses with strong downside protection and underwriting the worst-case scenario well, the base case can be attractive
38:52
Having access to capital when others don't is a key competitive advantage for Brookfield across asset classes, geographies, and market cycles
40:44
Shopify delivers up to 50% higher conversions compared to other checkout systems
41:56
An organization's culture is valuable in instilling principles across market cycles for inexperienced employees
43:44
Talent is crucial as the business relies on people
57:38
A mandatory mobile scanning program identifies ten health and safety risks upon site arrival, serving as a behavioral forcing function
58:19
AI doesn't take jobs but increases employees' productivity
1:02:02
The focus is on how much to grow rather than if they can grow
1:07:20
Retail investment in S&P 500 ETFs captures company growth, but large companies like SpaceX, OpenAI, and Stripe have grown outside retail access[01:07:20].
1:10:34
Brookfield completed the Oaktree acquisition in early 2019 after determining it was undervalued and aligning with its founders and senior management
1:15:17
There's no limit to how much one can care about things—family and Brookfield both matter deeply.
1:17:55
They prefer to read ahead of discussions and have little time for pleasure reading
1:23:09
In a crisis, the organization focuses on mitigating risks, protecting value, and seizing opportunities rather than just discussing negative impacts

Chapters

Introduction
00:00
State of the Union for Brookfield
00:05
Nature of Investing
04:14
The Rise to Brookfield
07:24
Your Work Ethic is in Your Control
12:06
Ad Break
17:30
Data Center Deep Dive
19:00
How Does a Deal Come to Be?
22:22
Taking Bets Against Consensus
29:34
What Happens Post Business Acquisition?
32:00
Ad Break
40:44
Lived Experience Through Crashes
41:55
Where Does Talent Matter the Most at Brookfield?
43:44
Identifying Talent
47:10
Using AI to Increase Value Not Cut People
58:18
When Was Brookfield the Underdog?
1:01:58
Personal Ambition Over the Next 20 Years
1:03:38
Behind The Scenes of Oaktree
1:10:34
Work and Life Harmony
1:15:17
Time Allocation
1:17:54
The Most Fun Deal to Work On
1:19:58

Transcript

Shane Parrish: Why don't we start with the State of the Union for Brookfield? You guys manage about a trillion dollars. Where is it allocated and how is it allocated? Connor Teskey: So our business today is really built around raising capital from the lar...