Q: Hi 5i, and always appreciate getting independent opinion.
My understanding is BN is a large 135B market cap company with about 100B revenue. I also understand they have about 100B line of credit to use on acquisitions/funding of large scale infrastructure - (which they have a history of doing well).
I like to buy cheap and wait. Its always easier to destroy than create/build, and considering Ukraine and Middle East infrastructure devastation not to mention new technology builds related directly and indirectly to AI, I can't help but believe the future is very bright for BN business long term.
I want to take advantage of the current weakness, but Brookfield is already 8% overall. Mostly BN, but some BIPC, and BAM. I'm looking for overall return long term.
My question - if it were you, would you consider allowing BN to represent a higher % of your portfolio because of its size and diversification of business? or would you have a hard stop on size of any single equity regardless of its apparent merits.
Thanks a ton!
Glenn
My understanding is BN is a large 135B market cap company with about 100B revenue. I also understand they have about 100B line of credit to use on acquisitions/funding of large scale infrastructure - (which they have a history of doing well).
I like to buy cheap and wait. Its always easier to destroy than create/build, and considering Ukraine and Middle East infrastructure devastation not to mention new technology builds related directly and indirectly to AI, I can't help but believe the future is very bright for BN business long term.
I want to take advantage of the current weakness, but Brookfield is already 8% overall. Mostly BN, but some BIPC, and BAM. I'm looking for overall return long term.
My question - if it were you, would you consider allowing BN to represent a higher % of your portfolio because of its size and diversification of business? or would you have a hard stop on size of any single equity regardless of its apparent merits.
Thanks a ton!
Glenn
5i Research Answer:
Weightings are personal, but WE would be fine with BN as a very large weighting. The stock is down this year, and investors are showing angst, but seem to forget its very strong long term record of creating value. Its access to massive capital allows it the time to buy assets in times of crisis, which we are seeing these days. In terms of reliable and comfort level, we think it is one of the best companies out there.