No. of Recommendations: 6
bottom line : possibly not worth the complexity and risk of future manipulations experienced by many brookfield subs.
Exactly, not worth converting from BN to BNRE.A for the vast majority of investors who pay capital gains tax.
In places like Australia with capital gains tax half the dividend tax when holding more than 12 months, it becomes almost worthwhile but still not quite.
And in places like Monaco where there is zero capital gains tax and the 25% withholding tax on Canadian dividends, it is only just worthwhile or marginally so. I debated with myself back and forth but ended up making use of the offer - it seems almost designed for investors living in just a few places that includes Monaco, for whatever bizarre reason.
Astonished at the lengths Brookfield goes to in making tweaks everywhere to optimise shareholder value. They are ironically like Buffett in that, in one sense, they are crossing the t’s and dotting the i’s to squeeze everything to the max to extract just a little more value (it is even entertaining to interpret what they imaginatively come up with each year or so) whilst at the same time exactly the opposite of Buffett in being prepared to have a huge trail of complications left behind from each tweak piling up. The tweaks are innocent, and quite rational, when viewed individually .. but have the monstrous effect in aggregate that turns a lot of, possibly especially the smaller, investors off.
- Manlobbi
