Brookfield Corp (BN.TO)

Many dislike this for owning a lot of real estate, but if you add up all the publicly traded companies that BN owns, you get the real estate for free. A worthwhile investment and you should buy. The best-managed conglomerate in Canada.

They spun off the asset manager, and this is the core company. The tickers are confusing. This is the mothership to its affiliate companies and stocks. This is a great compounder over 3 decades and continues to be so. He continues to buy this.

Over the next year interest rates should reverse, so we should see some good pickup in stocks that are yield plays. Not looking for big gains on these types of stocks.

Chart for BN shows the common pattern of a peak in 2021, and then a decline in 2022. Lots of correlation with the market. Now the stock's bottoming out, and we'll have to see where the next trend is. Decent support around $41, so you're OK if it stays above that. So many other stocks to choose from, he wouldn't touch this one.

BAM has been consolidating. Hard to trade, as the trading range is quite narrow. It's a buy from a yield perspective. If it breaks above $48 and hits a new level, a whole new round of buyers will come in. Holds it for some clients as a way to diversify.

It is a good long term investor holding shares of other Brookfield companies as well as having an insurance arm. The stock price is reflecting concerns over real estate exposure. However the market is giving it zero value for this and its commercial holdings are at the premium end which are not as affected as the lower end holdings. There have been a couple of defaults but this is not a concern. Brookfield has provided good returns over time.
Buy 9  Hold 2  Sell 1

Real estate has been the stumbling block, especially office space. Might be up and down in the short term. In the long run, owns best-in-class properties. Management has been around a while.

The chart has been quite volatile this year, all over the place, choppy. The elephant in the room is the cost of capital in the real estate sector. If you own this, watch the 12-month of low of $41; if it breaks below that, there's likely more selling to come. If you want dividends, look elsewhere.

Challenges in office real estate business for next 5 years.
Office square footage shrunk for the first time since 1930's.
Suspects it will be hard to get government workers back to work. 
Would wait for office space industry to bottom out before investing. 

They own/operate long-duration assets and are third-party managers of outside capital. Flows of money into private-market assets are outstripping flows into traditional stocks and bonds. So, BN has been hovering up money and now manages over $800 billion. Share have generated a compounded return of over 15% annually over 25 years. Good managers. A nice pullback to buy.

Office real estate is the overhang. They have many other divisions. Trades at discount to NAV. She'd buy at these levels. Lots of deployable capital to take advantage of global opportunities.

Bruce Black is probably the best CEO in Canada and is a very smart deployer of capital that appreciates over time. You are buying infrastructure and real assets at 75 to 80 cents on the dollar.

Tremendously undervalued. If you take out the value of all its stakes in subsidiaries, you're getting a negative value for its real estate, which is over $30B in value. Challenges in office are likely to persist. The properties have good value.

This is cheap, but has been soft. Cheap at 10x PE and models 15% growth. A complex vehicle, but likes it. Higher interest rates remains a headwind. It's too cheap to ignore.

Owns shares in company.
Very high exposure to real estate and renewable energy.
Pandemic very hard on business.
Believes long term business will be strong.
Excellent capital allocation skills.

They walked away from part of their LA portfolio. Management owns a lot of stock and always buying more, which is good. At the end of the day, BN is far more than properties (have infrastructure, for example). He's owned this 5 years. It's volatile, but gives access to infrastructure and private assets, which is rare.

Essentially a holding company for all their other assets, with unique capital allocation opportunities at the top of the pyramid. This will enhance compounding for shareholders over the longer term. Valuation is less than 10x cashflow, free cashflow yield north of 8%. Taking in cashflow from dividends from those companies. 

Hit hard because of real estate exposure. Lots of excess cash. Big dollars, and platforms to deploy capital. Yield is 0.87%.