Brookfield Infrastructure Partners (BIP.UN.TO)

It has pulled back with rising interest rates. It has a good yield and is now at an attractive price to start buying. Alternative assets will still be in demand. It is well managed and buys assets globally. The tail wind will  be dropping interest rates at some point.

Rising interest rates have negative impact on business. Number of projects involved in, have had cost overruns. Would prefer Brookfield parent. 

Two really well-run companies. 

BN is the parent company for all the subsidiaries. A wonderful compounder. Negative sentiment around real estate holdings, which are high quality and global. Capital allocation opportunities will benefit shareholders. Loves it, he'd buy right here.

For BIP.UN, a wonderful income opportunity. You get growth and income. He'd be a buyer of this one, too. Valuation discount to BN. 

Half the infrastructure stocks is that they run up a few years ago when investors felt that governments would offer incentives to build renewables. Expectations were high, not wrong, but these things take a long time. Prefers BN-T for its discount to NAV.

Share price hit hard by rising interest rates & bond yields. Believes company is a good long term investment. Assets valuable as hard to replicate. Good time to buy given share price. 

Surprised at weakness in share price. Higher interest rates impacting borrowing costs. Positive on future of company. Will be able to pass rising debt costs to customers. Good for long term investors.

Sometimes the satellites are the better way to play than BN. Both work, but right now BIP.UN is the better choice. Cheap, and growing at 10%. Nice dividend.

Good combo of income (around 5%) and secular growth, predicated on global infrastructure deficit. Global. Great opportunities in data centres. US CHIPS Act should be a big catalyst. Pullback is pretty buyable.

He sold recently at a high since it was getting harder to analyze but may buy some back later. It is a long term compounder and regularly increases its dividends, so don't sell at these levels. He likes the pure infrastructure plays rather than companies that buy the assets.
Editor's Note: He thinks the central banks have stopped raising interest rates and that inflation is coming down into the 2 to 3% range. Valuations should then start to recover and he expects a bond rally in the next year or two.,

Interest-rate sensitive, sector's out of favour. More debt, because they invest in hard assets. Generates steady stream of cashflow, indexed to inflation over time. To assess, look at cashflow from operations. Distribution safe. Likes the space, keep holding.

A great long-term hold. Every pension fund needs long assets like infrastructure. Brookfield probably holds the best stable of international properties. People own this for the dividend, but these stocks have struggled this. Now is a terrific entry point for BIP.

One of the Brookfield affiliates; it invest in data centres, ports, etc. internationally. The world needs more infrastructure, and Washington passed an infrastructure bill last year, so there is money looking to be invested. BIP is a good combination of income (growing dividend) and growth. BIP has a funding advantage via its parent company, though theoretically there shouldn't be a wide difference in share price between the parent and their affiliates. But if shares are close, you can buy this for a taxable account; for non-taxable account, buy the cheaper one.

Excellent long term prospects.
Recent selloff in share price due to rising interest rates. 
Fundamentally strong business. 
80% + of cash flow protected from inflation.
HVAC business unit will benefit from Federal Government subsidies. 

Higher interest rates plus some M&A deals, so a bit of shuffling to fund assets. Still modelling reasonable growth of 8%, with 12x price to AFFO, decent dividend. Not an "if" thesis, but "when". Nothing wrong with the thesis.

The sector is fairly interest-rate sensitive, so it's sold off. One of his preferences in the sector, and it all has to do with a good growth outlook.