Brookfield Corp (BN.TO)

It has good assets and good access to capital. This means it can buy assets with declining prices and there are global opportunities as well. It is at a good entry point to buy for the long term.

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. 

What's hurt it is their large commercial property portfolio, though an excellent AAA one. BN trading at a 30% discount to NAV. Now is a good time to look at BN at these levels. Historically, they've narrowed the NAV over time.

All the Brookfield offerings are extremely well-managed companies. Fair amount of leverage built in, as demonstrated by recent volatility. When the price is depressed, that's the time to look. Expects dividend increases. All are good, and BN is probably one of the better ones.

Problem in last year has been its real estate holdings with interest rates going up as much as they have. Sometimes the satellites are the better way to play. Both work, but BIP.UN is the better choice right now with it being as cheap as it is and growing at 10%. 

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.