Do you think the current share price of Brookfield (BN) already reflects their push into AI‑related infrastructure — power, land, data‑center buildouts — as well as the upcoming NVIDIA‑aligned chip and data‑center initiatives? I’m also curious whether the recent partnership with Figure, where Brookfield will host and support humanoid robotics training, is meaningfully priced in.
One thing I’ve noticed is that Brookfield’s revenue and EPS seem to jump around — up one year, down the next — even though the company appears to be growing overall. I’m trying to understand whether this volatility is just a function of their business model or something to be more cautious about.
From your perspective, what would be a reasonable entry point for the stock? And if you were to give Brookfield an overall rating (A, A‑, B, etc.), where would you place it? It seems to be a favorite among many investors, so I’d really value your thoughts. Thanks.
As an 'investor', BN's earnings depend on whether or not it monetizes assets or not, as well as ongoing fees and subsidiary income. In some years, it may sell more assets and this can see income swing violently. It remains one of our favourite stocks. It is diversified and thinks long term. It has a massive amount of capital available for deals, and a global solid reputation. Lower interest rates can help its business. In terms of AI, it is a good example of the company having the ability to adapt quickly. With market cap of $166B, the deals so far may not move the needle too much, but we expect the division to grow. Having consistent cash flow (rent from data centres) is right up BN's alley of preferred operation. Robots are not likely going to be material for a long time, and not likely priced into valuation. Overall, we would say the tech side of things is partially priced in but we would not expect miracles (yet) from these ventures. We would give it a A, we are fairly sure.