Please be positive and upbeat in your interactions, and avoid making negative or pessimistic comments. Instead, focus on the potential opportunities.
- Manlobbi
Stocks A to Z / Stocks B / Brookfield Corporation (BN)
No. of Recommendations: 4
Thinking of taking some profit. Want to buy more TSLA (great product roadmap) and BTC (adoption and regulatory certainty). Also, need to sell to retire a margin loan I took a while back. Margin debt, even a small amount makes me nervous. Maybe buy a few toys as well - "It's later than you think!" a friend of mine likes to say.
Any opinions on the relative valuations of BAM and BN? I own both. I like the low debt of BAM - just a great business with reliable cash flows and good growth. Wondering if the dividend yield falling below 3% is an indication it's reached full value. On the other hand, BN borrows a bunch of money that will be repaid with debased currency. Assuming govt deficits aren't reduced, I expect assets to continue to appreciate in dollar terms resulting in large carried interest receipts going forward. Price matters but it's more important to identify the better business. Could easily hold for the "duration."
I really hate to sell, I love these businesses, but the kids need new shoes and other horses look a little faster.
No. of Recommendations: 1
BN share price has had a heck of a run YTD…
No. of Recommendations: 1
BN share price has had a heck of a run YTD…
It has done particularly well. I think I'll be trimming some of the BN. Debt has always scared me. Even though borrowing can be smart when the USD is getting debased so quickly, I worry about the very unlikely but possible black swans that can lead to bankruptcy. Pretty high risk profile in the rest of my stock portfolio so I think I'll go with the more conservative choice.
No. of Recommendations: 1
sorry if confused, but the only philosophy brookfield seems to have with your preferences seem momentum\chartology ?
actually, bitcoin seems the best index\proxy for global criminal (mostly cybercrime) activity, and where this utility has served as a strong currency-type prop.
so in a weird way, it could be seen as playing an alternative asset class that has little risk of going away, and traditional financial institutions want to join in.
No. of Recommendations: 1
sorry if confused, but the only philosophy brookfield seems to have with your preferences seem momentum\chartology ?
Just the opposite, I'm a Buffett value investor. I do my own "back of the envelope look thru" earnings calculations to estimate values. 90% of what I'm doing is to pay off a margin loan (less than 5% of my portfolio). The other 10% is to reposition a little from a fairly priced stock to underpriced assets. I'll still end up keeping 80% of my BAM/BN.
Also, I've owned BAM a long time now - most of the Bruce Flatt era. He's a big part of why I like the company. Losing him is similar to BRK losing Buffett. Brookfield has tapped a very rich vein of gold with their advisory business. I don't really see any threats to that other than just getting too big or making poor investment decisions. The next CEO looks impressive, but at this point he's a draft pick and we'll have to wait and see how good a manager/investor he is. From a distance, Flatt seems to have been very good at keeping the talent happy ... not an easy task.
No. of Recommendations: 3
same here, i have held brookfield for decade+, and eventually ditching all the spins, including the asset manager in 2024.
so BN is still around for me as long as its effectively flatt and marks primary vehicle.
extremely boring, the bam sale was the largest and went into diversified short-term bonds, including munis.
like bruce, i gotta watch those taxes for the overall portfolio, and its grunt time to offset bam gains w/as much loss as i can stand to churn.
