Q: You’ve picked and stuck with some real winners in the past. You were upbeat on nividia well before it jumped in price as an example! Do you think BN will be a longer term winner? You likely address this in a prior question (in which case please feel free to direct me to your answer), but I am wondering if can briefly give me your top reasons why one may want to buy and hold BN. Thanks.
5i Research Answer:
Several reasons: 1) Management is solid and proven through many cycles. They tend to utilize capital to make long term investments, taking 'advantage' of other holders who worry too much about short term events. In other words, they see the big picture 2) Record of creating value. With dividends and spin out companies, BN has solidy been a compounding value creator for shareholders 3) Capital. Right now, BN has $140B in capital that it can deploy into transactions. As rates peak, we might expect faster deployment of this money. 4) Valuation. At 15X earnings, considering managment skill and the quality of assets, we think that is quite an attractive valuation.