If I Could Buy and Hold Only a Single Stock, This Would Be It.

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I have over a hundred individual company shares, and I appreciate this degree of diversification since it minimizes risk. Additionally, it enables me to invest minor amounts in more speculative businesses that could potentially yield significant returns.

Instead of opting for multiple stocks, I would single out Brookfield Corporation (BN) as my top choice. This globally recognized investment company boasts an impressive history of enhancing shareholder value, a trend I anticipate will persist in the future.

Like Berkshire, only better

Brookfield Corporation exhibits similar traits to the renowned Berkshire Hathaway (BRK.A) (BRK.B). Both companies are spearheaded by esteemed CEOs – Bruce Flatt at Brookfield and Warren Buffett at Berkshire – who boast impressive track records in enhancing shareholder value. Additionally, their business structures are grounded in insurance and operational enterprises.

Over the past several decades, both Brookfield and Berkshire have benefited their shareholders. Nevertheless, it is worth noting that Brookfield has outperformed Berkshire significantly, with an average annual return of 18% over 30 years compared to Berkshire’s 13%. This outperformance surpasses the S&P 500’s 11%, indicating Brookfield’s exceptional investment and operational abilities.

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Three pillars of wealth creation

Brookfield maintains a solid foundation for ongoing substantial profits, with its development of three top-tier wealth-building enterprises.

  • Asset management: Through Brookfield Asset Management, the company is a leading alternative investment manager with over $1 trillion in assets under management (AUM).
  • Wealth solutions: This segment offers retirement and wealth protection products, including annuities through Brookfield Wealth Solutions.
  • Operating businesses: The company invests directly in real assets such as renewable power, through its investment in Brookfield Renewable; infrastructure, through Brookfield Infrastructure; business and industrial services, in Brookfield Business; and real estate, on its balance sheet.

Over the last 25 years, the company has constructed a prominent asset management platform specializing in alternative investments, entirely from scratch. This enterprise now manages more than one trillion dollars in assets under management (AUM), yielding rising revenue through fees and carried interest – its cut of the profits exceeding those produced by its investment funds. Brookfield anticipates that this business will double its AUM within the next five years, as more investors expand their investments in alternatives.

Brookfield started a business focused on wealth solutions, which has grown significantly. Today, it manages more than $110 billion in insurance assets, a figure that was just $2 billion four years ago. The company anticipates this growth will continue and reach $300 billion within the next five years. This impressive expansion is expected to generate over $2 billion in yearly profits. Similar to Berkshire, Brookfield uses earnings from its insurance ventures to boost shareholder returns by reinvesting capital.

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To summarize, Brookfield has been managing real estate assets as a proprietor for over a century. Like Berkshire Hathaway, it utilizes the cash flow generated by its operating businesses to fund future investments. However, unlike Berkshire, which tends to invest in shares of publicly traded companies, Brookfield often redirects surplus funds into its own alternative investment funds.

High growth for a value price

Over the next five years, I’m thrilled to share that Brookfield Corporation anticipates its primary sectors will surge, boosting our annual per-share cash flow growth by an impressive 20%! This trajectory positions us to amass a staggering $47 billion in free cash flow, equating to approximately $30 per share. Given that our stock price is currently under $70, and significantly lower than its estimated worth of $84 per share, this figure is nothing short of mind-blowing!

The best part? We have the freedom to channel this wealth into enhancing shareholder value. This could mean increasing our dividend payout, snapping up shares at opportune moments, or pouring resources into strategic expansion initiatives such as acquisitions and fund investments. Exciting times ahead for Brookfield Corporation!

Based on their projections, Brookfield is anticipated to boost its value per share to $176 by 2029 through strategic growth initiatives like doubling assets under management (AUM), expanding insurance assets, and utilizing excess cash flow wisely. This forecast signifies a significant increase of over 150% from the current stock price. It aligns with their long-term goal of achieving total annual returns of 15% or higher.

Brookfield Corporation might be the only stock I need

I prefer accumulating numerous shares, but I heavily invest in Brookfield Corporation due to its exceptional quality. As a leading global investment firm, it boasts an impressive track record of generating above-par total returns that are likely to persist in the foreseeable future. Additionally, its share price is attractively priced, considering its anticipated growth potential. These qualities make Brookfield Corporation an appealing choice for long-term investment.

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2025-07-23 10:22