Stockchase Insights BUY
Brookfield Corp (BN-T)
15/03/2023
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.
Lower interest rates are certainly more helpful to the Brookfield group.
The company has a massive amount of capital to deploy.
If valuations continue to fall, we would expect a lot of deals.
Higher rates of course lower the potential return on deals, but if valuations are lower then this becomes a bit of a wash.
The spin out should create value over time. Both companies have predicted fairly high growth rates, and BAM intends to pay out most cash flow in rising dividends.
The value creation over the past 20 years has been nearly the best in Canada, and we would expect BN to survive this current market/economic scenario fairly well.
The stock is going to bounce around, but it is not really a company we 'worry' about too much. It has proven itself time and time again.
Management / Diversified
Stockchase Insights
$39.60