Brookfield Corp (BN.TO)

One of the world's foremost managers of long-duration assets, like private equity, renewable energy and utilities. They have assets around the world like the UK. They have size, scale and diverse funding. Are also a fine asset manager. Are capital-lite. Flows of funds into alternative assets are outstripping funds into stocks and bonds, even with these interest rates. Their shareholder returns are 15% compounded over the last 25 years. That means a $1 in 1998 is $31 today, including dividends.

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. 

He hasn't warmed up to the Brookfield companies. This restructuring is a bit of a shell game. He prefers a pure play stock. But if he prefers the Renewables stock the most given its growth prospects.

Stock overhang due to commercial real estate portfolio. Still thinks overall - real estate will be strong. Interest rates will put pressure on company in mid term. Long term is a strong business. Excellent ability to raise money. Will continue to own shares. 

Insurance business very strong. Ability to raise capital very good. High quality management team. Diverse array of assets. Would hold for the long term. 

He's very negative and expects 17% downside. No, negative trend yet, but doesn't like the Brookfield companies. Why are there three Brookfield companies in the index? $40.85 is his target.

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