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  5. BN: I am absolutely stunned by your constant promotion of BN. [Brookfield Corporation Class A Limited Voting Shares]
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Q: I am absolutely stunned by your constant promotion of BN.Why is this?
The dividend is almost none.
They have a high portion of their investments in commercial real estate,which looks more scary by the day.
The market keep telling us for a long time that BN is overpriced.
So why oh why do you keep mentioning BN in a favorable manner?
I know they are around for a long time,but so was Nortel and GE.
Asked by Josh on June 01, 2023
5i Research Answer:

We are going to quote some third parties below, as this is not just 'our' opinion. But we agree with the following, and the corporation has been one of the best generators of shareholder value for more than 30 years. When looking at long term returns things get messed up a bit because of the company's split, but it has been one of the best stocks in Canada overall and continues to have strong potential. Commercial real estate is a risk but its exposure is less than 20%. Its dividend is low by design as it wants to invest capital. Its valuation is attractive at 14X earnings. 

BN’s leadership team (who personally own significant stakes in BN and BAM) has a long track record in growing the asset management business while shrewdly investing both third-party and its own capital. As long as BN continues to do both, shares have significantly more upside than the 20% or so from the narrowing of the net asset value discount. BAM today manages $834 billion, up over 3 times in just the last 5 years, with leading positions in global infrastructure, real estate, renewable power, and credit. These are attractive industries that will require substantial capital investments going into the future, and BAM’s creativity in creating new funds and raising capital should lead to ongoing AUM growth and corresponding growth in the value of BN’s stake in BAM. Furthermore, since the 1990s when current CEO Bruce Flatt fixed up Brookfield’s predecessor Brascan, Brookfield has a strong track record of investing in undervalued assets in bad times (which it can do because of its diverse funding sources) and realizing gains after improving operations and in better market conditions. Some notable examples include buying hydroelectric dams in the aftermath of Enron in the early 2000s, buying ports in Australia and the UK in 2009 in the Great Financial Crisis, or buying Petrobras’s natural gas pipeline network in Brazil after a corruption scandal in 2016. More recently, BN sold a large stake in Brookfield Renewable Partners at an elevated valuation in early 2021 while buying out minority interests in Brookfield Property Partners at a wide discount to net asset value. With BN today generating significant cash flow from its investments and net carried interest, and a capital allocation policy that reinvests earnings rather than dividends, we expect BN to continue making profitable investment decisions and shares to compound correspondingly.