Jeff Parent B. Eng. FCSI CIMBrookfield CorpBN.TODON'T BUYAug 24, 2023

The downtrend has been accelerating. It broke support of $52.50. Not a good chart. If it breaks $50, it keeps falling.

Despite its complex structure, his firm prefers and owns BN instead of its subsidiaries.

Valuation is very appealing at under 10x PE, growing 18%. Trades at 8% discount to his team's NAV assumption. Investor day on September 17 should be a catalyst. If you want a cheap name that hasn't done much, this is it.

More compelling at the moment than BAM, BIP.UN, or BEP.UN.

Technical damage is there, with 200-day MA starting to trend lower and the price below that. Needs time to repair. Complicated structure and leverage makes it hard to value underlying assets. 

Private-equity, carried-interest part of the whole Brookfield family. Closest to the top of the house where Bruce Flatt resides, so that's where you want to be.

A bit more sensitive as markets have softened. Higher beta, higher risk. APO is a simpler ride, and BAM would provide more stability.

He bought more. No magical catalyst in the quarterly report. Carried interest won't come through as fast as thought, but insurance is growing like gangbusters. Undervalued here. A beautiful business.

Managed well that puts together good deals. In private equity, he prefers Blackstone which has more leverage in its business model and less exposure to the global office market, though BN owns quality office towers. BM has one advantage: it can list on the NYSE and get on the S&P which can uplift the valuation.

If you're trying to de-risk, she'd put this name as probably the riskiest of all the Brookfields. Can be quite volatile with market fluctuations. They own real estate, subsidiary verticals, insurance, private equity. Lowest yield.

Instead, she'd look at BAM or BIP.UN or BEP.UN.

He wants to own the parent. That's where management has all its shares, and that's where you're going to get the value. Brookfield is doing a lot of great things including consolidating. Bringing in a lot of money. A juggernaut. Firing on all engines, valuation still reasonable. Huge runway, in all the right spaces with the proportionate amount of risk. Yield is 0.67%.

Their largest asset is their stake in BAM-T which has struggled recently along with private credit. BN is unfairly painted, because they are more focused on utilities and infrastructure. He expects many inflows in the coming year and a lot of cash flow. BN trades at a discount to BAM, and BN gets most of the performance fees from BAM. True, the company is not very opaque, but the top managers own a lot of stock.

The structure is so opaque, he doesn't really know what's there. Interwoven financing between the subsidiary companies. He prefers pure operating companies. BEP.UN, however, is one business he does like.

A core holding. In recent months, this has been choppy over alternative assets, though BN is among the best in this sector. They allocate investor money in a safe way, like infrastructure. They do all the right things. With rates possibly coming down, money will seek better returns.

(3-for-2 stock split on 9 October 2025)  Buying back stock. Simplified structure is coming. $2B investment in SpaceX is very exciting. Great GARP name still -- 9x PE for 2028, 25% growth. Can add here.

Complex business, as are the financials. Today the big fear is over private credit. Stock's back into interesting territory, attractive valuation. So well positioned, whether it's data centres or nuclear. Global footprint, solid reputation, and firepower. Yield is 0.62%.

Likes infrastructure, but buy the parent instead of BIP.UN. It's much more diversified, and you get the benefit of all the segments. On sale, relatively inexpensive compared to some of its subsidiaries.