Should I Buy Brookfield Corporation (BN)? Finance YouTuber Analysis

The YouTuber identifies Brookfield Corporation as a potential buying opportunity, believing it to be one of many stocks with strong fundamentals that have been 'left behind' by the market's focus on AI and semiconductors. He suggests that despite the S&P 500 being at all-time highs, there is significant value in such overlooked companies.

“Just take a look at Skyward. Take a look at BAM. Take a look at Mastercard Visa Microsoft even Nvidia. Arguably, Marcato, Libre, New Bank, Meta, Brookfield Corporation, KKR, Apollo.”

The YouTuber has significantly trimmed his position in Brookfield Corporation, reducing overall portfolio exposure from over 20% to 10-11%. He believes the company is on track to miss its 2025 guidance, primarily due to the underwhelming growth of its insurance business, which was expected to be the largest growth driver. This has led him to lower future growth outlooks and, consequently, the future return potential for the stock, despite it trading at a premium to historical valuation averages.

“I have significantly trimmed down my Brookfield Corporation position and rotated a large amount of that capital into Brookfield Asset Management.”

The YouTuber trimmed his position in Brookfield Corporation (BN) to reallocate capital into Brookfield Asset Management (BAM). He believes that BAM now offers more value than BN at their respective prices, based on his updated DCF analysis and the cleaner business model of BAM.

“The reason I am trimming down my BN position is to add to BAM. If you are someone who has been following my channel for quite some time, then you know that back in October of 2024, I sold my entire BAM position.”

The YouTuber is buying Brookfield Corporation, seeing recent weakness in the private equity market as an opportunity. He argues that Brookfield's focus on critical infrastructure assets provides consistent cash flows and is not subject to the same risks as software-focused private equity. He believes a shakeout in the industry will strengthen Brookfield's competitive position, and the company's projected cash generation and earnings growth make it an undervalued, high-quality business.

“So, as the share price has been a little bit weaker with the volatility that we've seen in the market over the past week and the overall selloff in the private equity space, I have been continuing to nibble and add to my position.”

The YouTuber holds Brookfield Corporation (BN) in his personal portfolio, preferring it over BAM for its growth focus. Based on guidance, BN is projected to grow free cash flow by 20-25% annually over the next 5 years. A DCF using the lower end of this guidance (20%) and a 20x cash flow multiple (its current trading multiple) suggests a 22% compounded annual growth rate and a fair value of $75, indicating it's cheaper and offers more growth potential than BAM.

“So, to put it simply, I do still think that Brookfields Corporation or the BN ticker is cheaper and could offer more returns than BAM over the long term.”

The YouTuber is buying Brookfield Corporation as his primary AI investment, viewing the AI buildout as a new pillar of global infrastructure, aligning with Brookfield's century-long expertise in infrastructure development. He highlights Brookfield's ability to self-fund and self-manage power, real estate, and data center construction, and its strategy of securing contractual agreements with creditworthy counterparties like Google, Microsoft, and Amazon, mitigating risks seen in past tech booms.

“this is the way that I have chosen to play artificial intelligence. And that's because I'm not smart enough to know which LLMs are going to succeed or which chip provider is going to win over the next 5 years when it seems like every company is coming out with their own chip now.”

The YouTuber is continuously buying Brookfield Corporation to maintain it as his largest portfolio position, believing it offers significant value. He cites the company's strategic positioning in AI infrastructure through a new $100 billion fund with Nvidia, its projected $53 billion free cash flow over five years, and expected 25% annual growth in distributable earnings per share. A DCF analysis suggests a fair value significantly above the current trading price, indicating strong future returns.

“I try to keep this position around 25% of my entire portfolio. So, as I continue to get more cash within my portfolio or Brookfields Corporation drops relative to my portfolio, I try to top it up and keep it around that 25% level. So, this is a stock that I am pretty much always buying.”

The YouTuber bought more shares of Brookfield Corporation, viewing the recent stock sell-off as an opportunity. He believes the long-term investment thesis remains intact, citing the company's projected 25% annual growth in distributable earnings over the next five years, strong asset management inflows, and significant future cash generation from real estate and carried interest. He also highlights the attractive valuation of 16 times distributable earnings for a company with such growth prospects.

“And personally, I think that a 16 multiple for 25% annual growth is extremely attractive. And I'm just going to skip ahead a little bit, but that's kind of why I bought more shares today.”

The YouTuber is buying Brookfield Corporation due to its strategic AI infrastructure partnership with Bloom Energy, which leverages Bloom's fuel cells for on-site power, bypassing traditional grids. Brookfield's vertical integration, owning power, real estate, and compute, provides a significant competitive advantage in the AI data center build-out, especially as power becomes the limiting factor for AI development. The company is projected to grow profits at 25% annually and trades at an attractive 20x earnings, making it an overlooked opportunity.

“I think that Brookfield is overlooked in the market right now. And I don't think that people have really caught on that this company is actually one of the best positioned companies in the world to benefit from the buildout of data centers.”

The YouTuber is highly bullish on Brookfield Corporation, considering it a strong long-term buy despite hitting all-time highs. He highlights the company's ambitious projections for 25% annual profit growth per share, driven by AI infrastructure, wealth solutions, and significant carried interest realizations ($25 billion over 10 years). He notes the company's strong track record of exceeding guidance, high insider ownership, and a projected 2030 price-to-distributable-earnings of 6.63 based on current price, suggesting it's still cheap.

“So, even though Brookfield is selling for all-time highs today and the stock is continuing to run higher, I surprisingly still believe that it is not looking overvalued. And if they can meet their 5-year projections by 2030, then I actually think the stock is still looking cheap.”

The YouTuber is actively buying Brookfield Corporation shares, considering it undervalued despite trading at all-time highs. He cites strong distributable earnings growth, particularly in the wealth solutions business, and significant future cash flow from carried interest realizations. The company's new AI infrastructure strategy, requiring $200 billion in capital, positions it uniquely to capitalize on the AI wave by building and powering data centers, which he believes will accelerate growth and lead to market-beating returns with low risk.

“Even though Brookfield shares are trading four all-time highs, I still think the stock is undervalued and I have been an active buyer of Brookfield shares.”

The YouTuber considers Brookfield Corporation (BN) his largest portfolio position and the best long-term growth play. He favors BN over its affiliates like BEP because it reinvests cash flows back into growth rather than paying large dividends, offering diversified exposure to all of Brookfield's businesses and their growth.

“That's why Brookfields Corporation is the largest position in my portfolio. It's why I don't own BEP directly and I don't own BIP or any of the other affiliates and subsidiaries directly because those companies are more focused on paying out dividends and I just want more growth and I want more reinvestment back into the business.”

The YouTuber is buying Brookfield Corporation (BN) due to its strong Q1 earnings, which showed a 27% increase in distributable earnings, exceeding their own projections. He highlights the company's critical infrastructure assets, strong capital allocation track record, and unique investment opportunities. Valuation-wise, he finds it undervalued at a 16x price-to-distributable earnings multiple compared to peers, and his DCF analysis suggests an $83 fair value, significantly above its current trading price.

“I actually bought more shares in the market today after earnings. I am completely fine averaging up, buying near all-time highs, buying on a day where the stock is up 4%. Because when I take a look at the price of this business relative to its fundamentals and its underlying value, I do think that it is still very undervalued and could continue to outperform the S&P 500 over the next 5 years and over the long term.”

The YouTuber is a high-conviction buyer of Brookfield Corporation, viewing recent bearish articles as mischaracterizations of its complex but legitimate business practices, such as internal asset sales and capital recycling. He emphasizes Brookfield's long-term focus, its role in AI infrastructure and renewable energy, and the alignment of management's interests with shareholders.

“I think that you know if the market wants to sell off Brookfield based on its real estate portfolio then I'm going to be a happy buyer and I'm going to continue increasing my position”

The YouTuber is very bullish on Brookfield Corporation, citing strong Q4 2024 results with distributable earnings growing 24% year-over-year, aligning with the company's 5-year target of over 20% annual growth. He believes the stock is undervalued, trading at 18 times distributable earnings while projecting over 20% annual growth, and highlights the significant, often misunderstood, value of carried interest, which he estimates at $30 billion or $21 per share. He also notes the company's share buybacks and Bruce Flatt's intrinsic value estimate of $100 per share.

“In my opinion, I do still think that Brookfield Corporation is undervalued in the stock market today and I did buy some more shares after earnings this morning when I read through the earnings report I increased my position in Brookfield Corporation.”

The YouTuber continues to dollar-cost average into Brookfield Corporation, believing it is still not expensive despite being up over 100% since his initial purchase. He uses a discounted cash flow model with a 22% annual free cash flow growth rate and a 15x price-to-distributable earnings multiple (conservative compared to peers) to arrive at a fair value of $77.77, indicating a 30% upside from current levels.

“with BN as well surprisingly the stock is still not looking that expensive in the Market at least in my own opinion and this is a stock that I am actively still dollar cost a averaging and buying more of in my portfolio despite it being up over 100% from where I was initially buying it here on my channel”

The YouTuber is bullish on Brookfield Corporation due to the increasing demand for electricity from data centers, which is projected to grow significantly. Brookfield is positioned as a key partner for data center builders in supplying this power, indicating a strong tailwind for the business.

“this is one of the reasons why I am bullish on brookfield's Corporation because they are one of the companies that these large data center Builders and providers are partnering with to actually Supply the power to power the data centers so I think that there are some Tailwinds here for select businesses”

The YouTuber continues to buy Brookfield Corporation, which is his number one position, believing it is a high-quality business still looking attractive in the market. He highlights Bill Ackman's recent significant investment in Brookfield, making it 13% of his portfolio, as a strong vote of confidence from a respected investor who shares similar investment philosophies.

“I still think that Brookfield is looking attractive in the market I am planning on continuing to add to my position at the current prices.”

The YouTuber is buying Brookfield Corporation (BN) with the proceeds from selling BAM, believing it offers significantly more value. He performed a DCF analysis using a conservative 22% free cash flow growth rate (below management's 25% projection) and a P/FCF ratio of 15, resulting in a projected 17% annual stock price growth. He also highlights that BN is trading significantly below its net asset value of $99.20 per share, calculated by summing the market caps of its publicly traded affiliates.

“I simply think that there's a lot more value in BN and that's why I made that shift in my portfolio”

The YouTuber argues that Brookfield Corporation (BN) offers significantly more value than BAM, trading at half the price multiple (17x free cash flow vs. 34x earnings for BAM) and projecting higher future growth (25% annual free cash flow growth vs. 18% for BAM). He highlights BN's ownership of a substantial portion of BAM, its insurance business, real estate portfolio, and other operating assets, which are currently undervalued by the market, trading at 0.66% of net asset value. He believes BN could deliver a 20.62% compounded annual growth rate over the next five years.

“I could see myself continuing to buy Brookfield Corporation the BN ticker... when I look at the numbers and when I look at the future projections everything does say that BN should outperform Bam from this point going forward.”

The YouTuber highly recommends Brookfield Corporation, citing its conglomerate structure owning critical global infrastructure assets with long-term contracts, such as water services, ports, and communication infrastructure. He highlights Westinghouse's leadership in SMR nuclear technology as a significant long-term growth driver. Despite trading near all-time highs, he believes it's undervalued at 12.9 times distributable earnings, with projected annual growth of 22-25% through 2028, and praises its shareholder-focused management.

“I think that Brookfield personally is a freaking slam dunk of an investment. It basically checks all the boxes on what I look for in an investment and that is why it is the largest position within my own portfolio.”

The YouTuber is adding to his position in Brookfield Corporation, citing its strong earnings growth, particularly from its insurance business, and its significant undervaluation based on net asset value. He highlights the company's strategic positioning in renewable energy and data centers, which he believes will power the AI revolution, and its disciplined share repurchase program. The stock is trading at 15.5 times cash flows with projected annual growth of 20-25% over the next five years, making it appear cheap.

“this business is still cheap in the stock market today and that is why I have continued to build my position and I have added to my Brookfield position after the reported earnings just yesterday”

The YouTuber, a long-time Brookfield advocate and shareholder, believes BN is still cheap despite a recent 46% rally from its lows. He highlights the company's diverse and critical infrastructure assets, strong management, and projected 20-25% annual free cash flow growth over the next five years. Trading at roughly 14 times free cash flow, he sees a significant disconnect between its valuation and intrinsic value, expecting 15%+ total returns per share long-term.

“when I take a look at Brookfield I see a business that is trading for roughly 14 times free cash flow and projecting 20 to 25% annual growth which I think is a massive disconnect from the company's underlying intrinsic value”