Brookfield: A Peculiar Sort of Growth

My aunt Mildred, God bless her, once tried to explain compound interest using fruitcake. It involved years, a damp basement, and a surprisingly detailed ledger. I didn’t understand it then, and frankly, I still don’t. But I’ve been looking at Brookfield lately, and it feels…similar. A slow accumulation of things, a quiet insistence on growth, and a nagging suspicion that I’m missing something obvious.

Brookfield Corporation (BN 0.02%), Blackstone, and Apollo Global Management. These are the names the financial magazines throw around, the ones that make my head spin. They all seem to be doing quite well, outperforming the S&P 500 for the past five years. Brookfield, specifically, has seen a 106.6% gain. Blackstone, a more modest 85%. And Apollo, a rather exuberant 143% since 2021. It’s enough to make a person consider taking up fruitcake investing.

But Brookfield… it’s different. It’s not just an asset manager. That’s what they say, anyway. I suspect there’s a secret room filled with accountants and a very large abacus. They own 73% of Brookfield Asset Management (BAM 0.97%), which sounds straightforward enough. But then it gets complicated. They also own Brookfield Wealth Solutions (BNT +0.69%), a Bermuda-based insurance company. Bermuda. Of course. It’s always Bermuda. The ownership structure is… involved. Let’s just say it requires a flowchart and a strong cup of tea. And a vacation to Bermuda, just to sort things out.

Then there’s Brookfield Property Group, and interests in various other investment entities, all managed by BAM. It’s like a set of Russian nesting dolls, each one slightly more bewildering than the last. Here’s a handy table, because honestly, I needed it myself:

Entity	Industry	Ownership Percentage	Market Cap	Value of Brookfield’s Position
Brookfield Infrastructure Partners	Infrastructure	26%	$18 billion	$4.7 billion
Brookfield Renewable Partners	Renewable Energy	46%	$20.5 billion	$9.4 billion
Brookfield Business Partners	Private Equity	68%	$3 billion	$2 billion

The numbers, they say, add up to something significant. The total value of Brookfield’s publicly traded investments is $16.1 billion. Its BAM stake, around $62 billion. Together, that’s $78.1 billion, or about $34.86 per share. Which, compared to the current share price of around $48, represents…well, I’m not entirely sure what it represents. A discount, apparently. A big one. They also assessed the fair value of everything else – the private funds, the real estate, the carried interest – at $98 billion. Another $43.30 per share. So, potentially, a breakup value of around $78 per share. It’s all very theoretical, of course. Like calculating the exact number of crumbs left in a fruitcake tin.

Brookfield’s management anticipates that, by 2030, the company’s intrinsic value could hit $140 per share. Based on forecast distributable earnings growth averaging 25%. That’s nearly three times the current trading price. It sounds… optimistic. But then, I’m the one who still hasn’t figured out compound interest. Even if the discount persists, they say, annualized returns could be in the 15%-20% range. In line with historical performance. They’re also exposed to trends like AI infrastructure and regulatory changes allowing 401(k)s to invest in alternative assets. It’s a lot to take in.

Brookfield’s price is currently pulling back, which, in the world of finance, probably means something. Considering its underlying value and long-term potential, now might be the time to accumulate a position. Or, you know, just buy a really good fruitcake. It’s less complicated.

2026-02-18 04:03

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