Brookfield Corporation's stock traded at $47.29 on January 13th, with trailing and forward P/E ratios of 134.24 and 13.77, according to Yahoo Finance data. The company operates as a multi-asset manager in real estate, credit, renewable power, infrastructure, venture capital, and private equity, serving institutional and retail clients.
Many retail investors avoid Brookfield due to its perceived complexity in public markets. This complexity, however, conceals what is described as a powerful long-term compounding machine globally. Often likened to a Canadian version of Berkshire Hathaway, Brookfield integrates ownership and operation of critical real assets with an alternative asset manager and a growing insurance and wealth platform. Its model focuses on acquiring, operating, and compounding value in long-life, inflation-protected assets like infrastructure, renewable power, real estate, and private businesses, while earning high-margin fees from managing over $1 trillion in third-party capital.
Earnings are generated through three interconnected engines. Asset management, via a 73% stake in Brookfield Asset Management, contributes about half of earnings through fee-bearing capital and carried interest. Wealth Solutions, launched in 2020, accounts for nearly a third of earnings by underwriting long-duration annuities and pension obligations, creating an insurance float similar to Berkshire's. Operating businesses in renewables, infrastructure, private equity, and real estate provide durable cash flows and growth, also serving as platforms for managed capital.
Despite a three-decade record of roughly 19% annualized returns and management guidance for over 20% distributable earnings growth, Brookfield trades at a significant sum-of-the-parts discount. The market primarily values Brookfield Asset Management alone, underappreciating Wealth Solutions, real estate, carried interest, and operating platforms. As capital markets normalize and monetizations accelerate, this mispricing is seen as creating a compelling opportunity for long-term investors, with potential for sustained compounding and multiple expansion.
In April 2025, 310 Value presented a bullish thesis on Brookfield Corporation, highlighting its sum-of-the-parts discount, Plan Value upside, and valuation gap versus peers. Since that coverage, the stock price has depreciated by approximately 7.27%, attributed to ongoing complexity obscuring valuation. Daan | InvestInsights shares a similar thesis but emphasizes the insurance and wealth platform.
Brookfield Corporation is not included in the list of the 30 Most Popular Stocks Among Hedge Funds. According to database records, 42 hedge fund portfolios held BN at the end of the third quarter, up from 37 in the previous quarter. While acknowledging BN's investment potential, the analysis suggests that certain AI stocks may offer greater upside with less downside risk.