TSX:BPO.P.A - Post by User
Comment by
Carenaon Mar 29, 2024 2:30pm
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Post# 35960352
RE:Brookfield Group Returns
RE:Brookfield Group ReturnsHi again,
I was churning some more on this post and went back to check my numbers on the operating subs.
The historical charts and stock prices factor in stock splits but they missed the fact that subsequent to 2019, each of the operating subs of BN (ie BEP BIP BBU) created a corporation to increase liquidity in their stocks for those investors who did not want to own the LP.
And so there was a "distribution" component when BIPC BBUC and BEPC were created, which I missed. I had always thought it was just an opportunity for LP holders to exchange into the corporation. But LP holders received corporation shares and thus this had value.
To make a long story short, I then ran detailed IRRs (compounded returns including ALL distributions) and the numbers are still well below BN's results and much less than say the S&P but they are not as poor as I had stated. In my first post, I only compared current stock price with the price at Dec 31, 2019.
The results of my 5 year IRR's are: (i) BEP was 4.9%, (ii) BIP 3.8% and (iii) BBU was negative 5% and BPY is the million $ question...negative ____%?.
Nonetheless, my thesis is unchanged, BN is a huge "show me" story especially when GIC rates are now 5%.
Carena