Opinions David Baskin
Brookfield CorpBN.TOSTRONG BUYNov 14, 2023
David BaskinStock price when the opinion was issued
As of Oct 27, 2026. Market Open.
You might be interested:
He's owned this for 25 years and held on even after the BAM spin-off, because the fundamentals are incredible. As it grows, it gains economies and scale and a strong reputation. BN can easily raise fundraise. Has a fine track record. The stock is undervalued. They will collect all these performance fees in coming years. Wealth management is a great fee business, and BN is one of the top investors. The market doesn't care now that BN is investing is data centres. He continues to buy this.
Barry SchwartzPrivate credit has had it rough. Bread-and-butter is investing in real assets, which have some amount of inflation protection. Pretty good cashflow generator. Relies on relatively cheap cost of money to continue to build -- elevated long-term rates make that harder.
Well below 200-day MA. Pulling back to 200-week MA, may provide some good support. Broke lows it made in March. He's not looking at it, given weakness in the sector.
Cons. Complex structure. Very sensitive to interest rates. Private equity exposure. Expansion into insurance makes both balance sheet and execution risk a bit higher.
Pros. Last quarter, distributable earnings up 15%. Fee-related earnings up 20%. Fee-bearing capital reached $672B. Big war chest of $210B of deployable capital. Fingers in lots of pies as growth engines. Share buybacks. Trades 13% below actual NAV. Way cheaper than it ought to be at 9x PE, for a modelled 21% distributable EPS growth. Yield is 0.76%.
Greg NewmanParent is less focused on paying a dividend, while subsidiaries are more income-focused. Flexibility to allocate capital across its portfolio, which is an amazing way to add another layer of value for shareholders. Buy this one for growth. (If you also want income, makes sense to also buy one of the subsidiaries.) Yield is 0.75%.
(Analysts’ price target is $74.98)
Chris BlumasCurrently has no position in any of the Brookfields, but he'd play it through the parent. Difficult to understand, though taking steps to simplify. Demonstrated ability to grow AUM, which is what drives long-term growth. In the very long term, if HQ moved to the US, index inclusion could provide a nice boost to the stock.
In the space, he'd look at BX instead.
Jamie Murray Likes management and the group of businesses, just doesn't like the price. Very well capitalized, lots of liquidity. For a value manager, valuation is too demanding for expected earnings and growth. If he saw more of a correction, he'd probably take a look at having a position.
Parent company not very interest-rate sensitive, but subsidiaries BEP.UN and BIP.UN would be. Prefers BN, the parent, as a diversified way to de-risk the investment.
Despite its complex structure, his firm prefers and owns BN instead of its subsidiaries.
Martin Cobb, ASIPValuation 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.
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.
Barry SchwartzManaged 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.
Jamie Murray 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.
Unfortunately, Brookfield is looking like the old Brascan empire, a plate of spaghetti, where they spin off all these entities, then buy them back and it's hard to keep track of how many there are. That said, BAM and BN-T are grossly undervalued. The market is overreacting to the impact of commercial real estate BN-T, in particular.