The Corporate Chaos of Brookfield Corporation

Brookfield stock is incredibly popular lately, and if you know anything about Brookfield, you might ask: "which one?" There are six publicly-traded stock symbols for Brookfield's various entities: BN, BAM, BNRE, BEP, BBU, and BIP. Confused? We sure were. When we looked into Brookfield's business, we found a convoluted mess that even the most sophisticated investors would have trouble understanding. And one of the first rules of investing is: invest in what you know. Today, we'll unpack Brookfield's complex business and look at why we're not enticed by the "value" they have on offer.

RESEARCH PIECES USED IN THIS VIDEO:
1. Investing in Alternative Assets

CHAPTERS:
00:00 Intro
00:24 What does Brookfield Corporation do?
02:27 The conglomerate discount
06:25 Why we're not interested in Brookfield
07:06 Alternative asset management
10:03 Brookfield Asset Management stock
12:28 Ways to get alternative asset exposure
13:28 Brookfield Corporation is way too complex.

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$BN $BAM $BEP

[Nanalyze]

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[peterholmes]

So is the point of your video that Brookfield is to complicated to be a good investment? I guess I am confused, I was expecting some deep dive analysis that showed that it was risky or overvalued somehow.

[mimsicle]

From The Toronto Star: Pierre Poilievre holds investments in Brookfield — the same company he attacks Mark Carney over. Poilievre and the Conservatives have hammered Carney over his former role as chair of Brookfield Asset Management, a major part of the global investment firm, Brookfield Corporation.
Updated March 28, 2025 at 10:04 p.m.

[gbibbo]

For the sake of clarity and simplification, let us not forget Brookfield Brothers

[John-uoro]

I enjoyed your video. It’s a very large holding for me and I find it valuable to listen to criticism. I spend a lot of time trying to understand the business as best I can. Their long video series from their most recent Investor Day has value to someone like me who is invested and trying to understand as best they can the ins and outs of the business.

I agree, I find it complicated. Despite this complicated nature, I have invested because I like their very long track record for being a consistently growing investment. I like their diversification. I like that they’re fundamentally in the global modern infrastructure industry like data centers, telecommunication towers, green power generation, nuclear SMRs, as well as their reinsurance arm and traditional infrastructure like Hydro, Real estate etc. For better or worse, I hope this is a wise investment. I’m just a regular working man trying to invest wisely in my future.

[shoelessjoe]

As a Brit I just want to say that I appreciated the use of the word 'wank'. I finally understood something an American said on You Tube. ;)

[thCharacter]

Look up what Brookfield Properties did in Burlington, VT with the "CityPlace" development mess. Essentially they were given development rights over part of a dead mall in the center of the city. Per the plan, they leveled most of the mall. They then walked on the project, leaving a giant open pit that dragged down the rest of the city, all while continuing to make statements that they intended to resume development. They officially left the project in 2020 after years of delays, jeopardizing millions in TIF funding. Burlington sued for breach of contract, but I'm not sure what the outcome of that was. Work eventually resumed with different developers, and parts are finally being completed years after the original plan. Many view it as the start of Burlington's current decline.
To me it demonstrated poor and unethical management, and I sold my multiple Brookfield holdings because of it. I blame the mayor for making a deal with them when many warned against it, but what their breach of contract did to the city is unforgivable. All news now about CityPlace is just lipstick on a pig. Most locals have a bad taste about the whole thing.

[bashleyqc]

Interesting and valuable perspective. Personally I don’t find the business complicated but understand why the structure can put some investors off. If it’s outside one’s circle of competence it’s best to put in the ‘too hard’ pile.

Flatt does have a phenomenal long term record and is a true value investor, which is what attracts me.

[themusic]

A good rule of thumb is if a business’s enterprise value is 5X its market cap and you can count its profit and free cash flow margins on one hand, you’re buying debt and expenses lol

[milanmilanov]

Brookfield Corp. (BN) is basically the Canadian version of the Omaha, NE-based Berkshire Corp. Similar to Berkshire, BN has a number of sub-divisions/wings that specialize in energy, asset management, infrastructure/transportation, banking, insurance, etc.
Brookfield Corp also happens to be the largest investment in Taco Bill Ackman's portfolio, at least according to his latest 13F filing. You make of that whatever you wish ...

[kybru]

First 17 seconds are the perfect summary haha.
I tried but could never understand this company.

Brookfield - Renewables, industrial, assets, office…., Brookfield - Brookfield. Lots of money shuffling around.

[mk-kijc]

So glad you covered the Ackman investment. Well said on every point. People in my circle think his brookfield investment is like when he did google and nike.

[sgwhj]

great, a 15mins video without actually saying anything

[ImperialRome]

I absolutely hate all of these different Brookfield tickers and subordinate companies... NOBODY should be investing in this chaos unless you genuinely understand what the heck is going on here... I almost bought BIPC but decided against it because I could't really understand the complexity of these corporate relationships (Corporate/Command Structure), there is too much smoke and mirrors here.. This is a good way to get people NOT to invest in your corporations. Anyways, THANKS for this important video which should be required for any retail investor thinking of buying any Brookfield security. It's easier to just invest in a stand alone company dealing with your business area of interest.

[jespermadsen]

I just sold BN yesterday (before I watched your excellent video) because i wanted to reduce my exposure to the market risk. I believe the us economy retracting and the market has long been overdue for a correction. BN has a high beta value and I'm ready to step back in when markets multiples has come down to a more reasonable level and some more clarity in the Trump administration's' policy. I like the diversifikation and the scalability of the business plus the management's high ownership.

[GreenspudTrades]

Glad it's not just me who can't figure out what their component businesses are about.

[ElLotdog]

The premise that complexity = bad is faulty, look into the history and structure of Liberty Media (and all of its, spin-offs, trackers, subs etc) and the value that has been created for shareholders…

[adamhanninen]

Another great one Joe! Happy late Xmas

[bethhynes]

About 10 days ago I sat in on a Blackstone new infrastructure fund pitch, and as a BREIT investor, they could not explain what clean, clear play for infrastructure from their firm is ( apparently cross pollination between different internal investments)- no thanks- if I can’t understand it, I won’t invest in it

[Dementia.Pugilistica]

If it's confusing for people who investigate this stuff for a living, imagine the average retail investor trying to understand this - or rather, giving up and moving on to something else because it's confusing