Brookfield is a rare opportunity in a broadly overvalued market for those looking to deploy capital into foundational positions but are struggling to find opportunities.
This deep dive is indeed a work of art! I have been a holder of BN, BAM, and BIP for years now and have done very well. I think where one invests depends on their needs. If investing for income BIP and BEP both have very attractive yields. Canadian investors may prefer BIPC and BEPC if money is non registered as dividends are eligible for tax credit. BIP.UN and BEP.UN are great in registered funds (RRSP, RRIF, and TFSA). For long term capital gain BN is definitely the way to go IMHO. BAM pretty nice yield but as Oguz has said maybe a bit expensive, has been kinda range bound for a bit. Investors with longer term timeframe will do well with any/all. Sorry for being long winded here lol.
Hey, nice write-up! Would you mind sharing your thoughts about the consolidation of distributable earnings related to Brookfield Wealth Solutions? I did not know that only a 11% stake is owned by BN, but the respective DE are fully accounted (1.350bn out of 1.374bn). What is going on there? Thank youu! Carlos :)
P.S. reading through BWS annual report, Brookfield appears to hold the majority of their Class C, and this would mean that the ownership is much higher justifying such big portion of DE. How did you come up with the 11% then? :)
This deep dive is indeed a work of art! I have been a holder of BN, BAM, and BIP for years now and have done very well. I think where one invests depends on their needs. If investing for income BIP and BEP both have very attractive yields. Canadian investors may prefer BIPC and BEPC if money is non registered as dividends are eligible for tax credit. BIP.UN and BEP.UN are great in registered funds (RRSP, RRIF, and TFSA). For long term capital gain BN is definitely the way to go IMHO. BAM pretty nice yield but as Oguz has said maybe a bit expensive, has been kinda range bound for a bit. Investors with longer term timeframe will do well with any/all. Sorry for being long winded here lol.
These are great insights Gord! Thanks for the contribution!
Hi Oguz, great article.
If you wanted to invest with Brookfield, would you buy BN, BAM or the publicly traded subsidiaries (in LP or corporate version) ?
What I like with Brookfield:
- very smart management
- scale (access to deals etc)
What I don't like:
- too close to politicians (isn't Mark Carney an ex-brookfield)
- financial engineering (high leverage of the subsidiaries, the subsidiaries being Bermuda LPs with alternate corporate)
- they are not shareholder friendly (GGP/BPY stuff, BPY delisting which left the preferred shares stranded, poor performance of Graftech)...
I think they're very good at lining their own pockets (management fees of the subsidiaries) so I would only invest at the top (BN or BAM).
Indeed, I recommend investing in BN. Not other entities individually.
I like BN. Would it be wise to also invest in Bam, Bip and Bep now?
I think it’s wisest to invest at the partner level, BN. BAM itself is pretty expensive.
Hey, nice write-up! Would you mind sharing your thoughts about the consolidation of distributable earnings related to Brookfield Wealth Solutions? I did not know that only a 11% stake is owned by BN, but the respective DE are fully accounted (1.350bn out of 1.374bn). What is going on there? Thank youu! Carlos :)
P.S. reading through BWS annual report, Brookfield appears to hold the majority of their Class C, and this would mean that the ownership is much higher justifying such big portion of DE. How did you come up with the 11% then? :)