Stocks A to Z / Stocks B / Brookfield Corporation (BN) ❤
No. of Recommendations: 2
Exactly 2 years ago BAM (now BN)share price peaked at $49.71
Today it is trading at $31'ish.
A slow, steady decline like a frog in warm water, despite all the fancy schmancy footwork in the interim.
As stated in my subject line, I'm just stating the obvious.
Sitting in my chair this morning I'm wondering what can be said to make the glass half full?
m
No. of Recommendations: 2
High interest rates are a game changer for almost all categories of asset managers: private equity, real estate, mutual funds, in spite of their protestations about how they are able to raise funds, sell holdings above book value etc.
Look at the fall in share price of BlackRock, T Rowe Price, Charles Schwab, as investors pull funds from higher earning equity funds and bank deposits into much lower margin money market funds and ETFS. These firms have much simpler and transparent business models than alt asset managers.
Alt asset managers are affected by the same trend. So it should be no surprise that far more opaque investment managers have been hit even harder.
The FT Big Read has a report on private equity titled 'High Rates start to pummel dealmakers'. A subscription is required to read it. Well worth reading it.
No. of Recommendations: 7
Exactly 2 years ago BAM (now BN)share price peaked at $49.71
Today it is trading at $31'ish.
A slow, steady decline like a frog in warm water, despite all the fancy schmancy footwork in the interim.
what can be said to make the glass half full?
===============================================
Peak was 50.50 on 2/10/22. But details aside, here is your glass half full view.
2 years ago, the federal funds rate was 0. Today it is 5.25 - 5.5. It's the fastest FFR increase in history.
2 years ago, the US10Y was around 1.75. Today it is 300 basis points higher at around 4.75.
What you are referring to as fancy schmancy footwork is simply Brookfield executing their business plan which all businesses have to continuously do. However, Brookfield doesn't exist in a vacuum. The higher interest rate regime, for various reasons too numerous to enumerate in a short post, has a negative effect in the short run and the lower price reflects that.
Looking to the future, as the business continues to grow based on their solid growth plans, the price will eventually, perhaps over many years, reach and surpass its all time high. That's approximately 66% higher than current price.
No. of Recommendations: 1
<Peak was 50.50 on 2/10/22. But details aside, here is your glass half full view.>
Interestingly, Yahoo charts shows the peak on Nov 1 2021...$49.71
On Feb 7, 2022 (closest it can get to 2/10) it shows a share price of $46.94.
Perhaps i'm doing something incorrectly.
https://finance.yahoo.com/chart/BN#eyJsYXlvdXQiOns... Apologies for the messy URL...i'm simply cut/paste.
m
