If so, look no further than Brookfield Corp (TSX:BN).
Brookfield is a Canadian financial conglomerate, known for its asset management activities. Brookfield Asset Management (TSX:BAM), and partnerships such as Brookfield Renewable Partners.
Brookfield Corp has a long and illustrious history that ultimately dates back to the 19th century. Today the company is one of the largest in Canada and ranks fourth in market capitalization. If all from Brookfields checked entities were included, it would have a much higher market capitalization than that – although many of the entities Brookfield controls are property by the investing public.
In this article, I’ll share five reasons why you might want Brookfield stock in your portfolio.
High growth
One thing Brookfield has going for it, especially compared to other financial services companies, is high growth. Over the past twelve months, the company’s net income grew by approximately 10%, and distributable earnings (DE) before realizations increased by 18%. During the same period, DE of Realizations (ie asset sales) increased by 0.8%. Management encourages shareholders to evaluate DE’s Brookfield performance prior to realizations, as this metric does not include one-time items such as asset sales. Based on the preferred metric, Brookfield is growing quite a bit.
Lots of deployable capital
Another thing that Brookfield – especially Brookfield Asset Management – has to offer is a lot of deployable capital. In its most recent earnings release, Brookfield announced that the company had $178 billion in deployable capital. That’s a significant amount of capital that could generate billions per year in fees. If Brookfield charges an average of 1% of client capital per year, we’re talking $1.78 billion in new annual fees.
Lots of intriguing offers
Another reason to hold on to Brookfield is the fact that the company has made a lot of intriguing deals lately. Just last year, Brookfield Renewable announced it would supply 10.5 gigawatts of power Microsoft. The company then announced a similar deal Alphabetparent company of Google and YouTube. There are a lot of exciting things happening here, and since Brookfield executives are among the best connected in the world, who knows where the line is.
Quality leadership
Still, there is one more thing Brookfield has going for it: great management. I wouldn’t be exaggerating if I said Brookfield is one of the best-managed companies in the world. CEO Bruce Flatt is an accountant with a value investing philosophy and a track record of 16% compound annual growth. Conor Teskey has also led major cases at Brookfield Asset Management. I can go on.
A sales advantage
Last but not least, Brookfield and its funds have a major advantage when it comes to selling investments to wealthy investors. The company’s executives are extremely well-connected and know personally the CEOs of major tech companies, the rulers of Qatar, President Donald Trump and many more. Recently, Bruce Flatt was in discussions with Trump in the US about a potential investment of $80 billion in American nuclear power plants. That’s the kind of deal you can make when you hang out with the rich and powerful.
Silly bottom line
Brookfield stock has basically everything you could want over the long term. High growth, consistent opportunities to invest at high returns, competent management and more. Those who buy Brookfield today should be rewarded in the long run
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