Blackstone and Brookfield: Wealth-Creating Machines with Strong Returns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Source: NASDAQ.COM
- Significant Return Growth: Blackstone has delivered a 26.5% annualized total return over the past decade, while Brookfield achieved 18.3%, both surpassing the S&P 500's 15.9%, highlighting their strong performance in the alternative investment sector.
- Capital Allocation Strategy: Brookfield allocates a portion of its capital to investments in its funds and operating businesses, projecting annual earnings growth of over 25% in the next five years, which will accelerate shareholder value enhancement.
- Shareholder Return Mechanism: Blackstone returns most of its profits to investors through dividends and share repurchases, with an annual earnings growth of about 20%, ensuring continuous wealth growth for its investors.
- Valuation Potential: Brookfield's current stock price is around $47 per share, significantly below its estimated intrinsic value of $68, indicating that its stock is undervalued and poised to deliver higher returns for investors in the future.
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Analyst Views on BN
Wall Street analysts forecast BN stock price to rise
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 40.740
Low
36.00
Averages
49.91
High
59.00
Current: 40.740
Low
36.00
Averages
49.91
High
59.00
About BN
Brookfield Corporation is a Canada-based global investment firm focused on building long-term wealth for institutions and individuals around the world. The Company has three core businesses: Alternative Asset Management, Wealth Solutions, and its Operating Businesses, which are in renewable power, infrastructure, business and industrial services, and real estate. Its Asset Management business includes managing long-term private funds, perpetual strategies and liquid strategies on behalf of its investors and itself. The Company's Wealth Solutions business includes its equity accounted interest in Brookfield Wealth Solutions Ltd. Its renewable power and transition business includes the ownership, operation and development of hydroelectric, wind, utility-scale solar power generating assets, distributed energy, and sustainable solutions. The Company’s infrastructure business includes the ownership, operation and development of utilities, transport, midstream, and data assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Brookfield Corporation's Strategic Transformation Towards Berkshire Hathaway Model
- Business Model Transformation: Brookfield Corporation is emulating Berkshire Hathaway's successful business model by spinning off its asset management business and establishing an insurance operation, aiming to leverage insurance float for investments, thereby enhancing the diversity and stability of its investment portfolio.
- Portfolio Diversification: The company currently oversees several publicly traded firms focused on key areas such as renewable energy, infrastructure, and private equity, which helps mitigate risks and improve long-term return potential through a diversified strategy.
- Market Competitive Advantage: With over 125 years of growth history, Brookfield Corporation is striving to prove the effectiveness of its investment-led insurance model, potentially positioning itself as a better option for investors seeking the next Berkshire Hathaway.
- Investor Attention: Despite Brookfield Corporation's promising transformation, it was not included in the Motley Fool analyst team's current list of top investment stocks, indicating that investors should carefully assess its future performance before making investment decisions.
See More
Brookfield Corporation: The Next Berkshire Hathaway
- Business Model Imitation: Brookfield Corporation is emulating Buffett's success by using the float from its insurance operations to invest, aiming to build a similarly massive conglomerate and enhance its market competitiveness.
- Asset Management Shift: The company has spun off its asset management business while focusing on its insurance operations, retaining a stake in Brookfield Asset Management, which reflects its strategic positioning in diversified investments.
- Diverse Investment Portfolio: Brookfield Corporation enhances its investment flexibility and market adaptability by controlling a range of public and private investment vehicles across key areas such as renewable energy, infrastructure, and private equity.
- Historical Growth and Future Potential: With over 125 years of growth history, Brookfield Corporation faces challenges but its potential to successfully adopt Buffett's investment-led insurance model makes it a noteworthy option for investors seeking the next Berkshire Hathaway.
See More
Brookfield Corporation Becomes the Next Berkshire Hathaway
- Business Model Imitation: Brookfield Corporation is emulating Berkshire Hathaway's successful business model by using insurance float to invest, although its investment scope is broader, covering areas like renewable energy, infrastructure, and private equity, thereby enhancing its market competitiveness.
- Long History of Growth: With over 125 years of growth history, Brookfield Corporation's relatively new business transformation still presents an attractive option for investors seeking the next Berkshire Hathaway due to its sustained growth potential.
- Transparency Advantage: Compared to Berkshire Hathaway, Brookfield Corporation offers greater transparency in investment decisions through its publicly traded subsidiaries, allowing investors to track investment performance more easily, thus reducing investment uncertainty.
- Market Performance Comparison: Despite similarities in investment strategies, analysts currently do not recommend Brookfield Corporation's stock, indicating a cautious market sentiment regarding its future performance, prompting investors to carefully assess its investment value.
See More
Investment Strategy and Passive Income Growth
- Cash Reserve Strategy: I plan to transfer over $1,000 in excess cash into my brokerage account to capitalize on future market downturns, aiming for 10% of my portfolio to be in cash, with half of that goal already achieved.
- Passive Income Objective: I intend to invest about $400 in high-yield dividend stocks this April, including Brookfield Renewable, Energy Transfer, and W.P. Carey, which will help accelerate my path to financial independence through their growing dividends.
- Brookfield Renewable Growth Potential: The company has increased its dividend by at least 5% annually since its formation in 2011 and expects cash flow per share to grow over 10% annually, supporting its dividend growth targets.
- AI Investment Opportunity: I plan to invest the remaining approximately $100 in Brookfield Corporation, which sees AI as a significant investment trend, projecting 25% annual earnings growth over the next five years from its AI infrastructure investments.
See More
Investment Strategy Focused on Passive Income Growth
- Cash Reserve Strategy: The author plans to transfer over $1,000 in excess cash into their brokerage account in April to capitalize on future market downturns, thereby enhancing financial flexibility and preparing for potential investment gains.
- Passive Income Goal: By investing in the iShares 0-3 Month Treasury Bond ETF, currently yielding around 3.5%, the author aims to convert idle cash into a steady monthly income stream, facilitating financial independence and alleviating job security concerns due to potential AI displacement.
- High-Yield Stock Investments: The plan includes investing approximately $400 in April into Brookfield Renewable, Energy Transfer, and W.P. Carey, all of which are expected to provide growing dividends, thereby accelerating the journey towards financial freedom.
- AI Investment Outlook: The author also intends to invest about $100 in Brookfield Corporation, which is capitalizing on the AI boom and anticipates a 25% annual earnings growth over the next five years, further enhancing financial security.
See More
Brookfield Corporation's Investment Transformation
- Clear Investment Goals: Brookfield Corporation aims to achieve a 20% annual growth in distributable earnings over the next five years, and while this target is ambitious, success could significantly enhance its market performance and attract more investor interest.
- Diverse Investment Focus: The company is concentrating on five key investment categories: infrastructure, renewable power, real estate, private equity, and credit, which are viewed as crucial drivers for global growth, showcasing the company's confidence in long-term expansion.
- Strong Capital Base: Brookfield currently has approximately $180 billion in its own capital, $135 billion in insurance assets, and $1 trillion in assets under management, with steady growth in these figures being a key indicator of the company's success, reflecting strong investment returns.
- Global Investment Presence: With operations in over 50 countries, Brookfield's extensive market coverage and diversified investment portfolio position it favorably in future market competition, further solidifying its leadership in the industry.
See More
Brookfield Corporation's Strategic Transformation Towards Berkshire Hathaway Model
- Business Model Transformation: Brookfield Corporation is emulating Berkshire Hathaway's successful business model by spinning off its asset management business and establishing an insurance operation, aiming to leverage insurance float for investments, thereby enhancing the diversity and stability of its investment portfolio.
- Portfolio Diversification: The company currently oversees several publicly traded firms focused on key areas such as renewable energy, infrastructure, and private equity, which helps mitigate risks and improve long-term return potential through a diversified strategy.
- Market Competitive Advantage: With over 125 years of growth history, Brookfield Corporation is striving to prove the effectiveness of its investment-led insurance model, potentially positioning itself as a better option for investors seeking the next Berkshire Hathaway.
- Investor Attention: Despite Brookfield Corporation's promising transformation, it was not included in the Motley Fool analyst team's current list of top investment stocks, indicating that investors should carefully assess its future performance before making investment decisions.
See More
Brookfield Corporation: The Next Berkshire Hathaway
- Business Model Imitation: Brookfield Corporation is emulating Buffett's success by using the float from its insurance operations to invest, aiming to build a similarly massive conglomerate and enhance its market competitiveness.
- Asset Management Shift: The company has spun off its asset management business while focusing on its insurance operations, retaining a stake in Brookfield Asset Management, which reflects its strategic positioning in diversified investments.
- Diverse Investment Portfolio: Brookfield Corporation enhances its investment flexibility and market adaptability by controlling a range of public and private investment vehicles across key areas such as renewable energy, infrastructure, and private equity.
- Historical Growth and Future Potential: With over 125 years of growth history, Brookfield Corporation faces challenges but its potential to successfully adopt Buffett's investment-led insurance model makes it a noteworthy option for investors seeking the next Berkshire Hathaway.
See More
Brookfield Corporation Becomes the Next Berkshire Hathaway
- Business Model Imitation: Brookfield Corporation is emulating Berkshire Hathaway's successful business model by using insurance float to invest, although its investment scope is broader, covering areas like renewable energy, infrastructure, and private equity, thereby enhancing its market competitiveness.
- Long History of Growth: With over 125 years of growth history, Brookfield Corporation's relatively new business transformation still presents an attractive option for investors seeking the next Berkshire Hathaway due to its sustained growth potential.
- Transparency Advantage: Compared to Berkshire Hathaway, Brookfield Corporation offers greater transparency in investment decisions through its publicly traded subsidiaries, allowing investors to track investment performance more easily, thus reducing investment uncertainty.
- Market Performance Comparison: Despite similarities in investment strategies, analysts currently do not recommend Brookfield Corporation's stock, indicating a cautious market sentiment regarding its future performance, prompting investors to carefully assess its investment value.
See More
Investment Strategy and Passive Income Growth
- Cash Reserve Strategy: I plan to transfer over $1,000 in excess cash into my brokerage account to capitalize on future market downturns, aiming for 10% of my portfolio to be in cash, with half of that goal already achieved.
- Passive Income Objective: I intend to invest about $400 in high-yield dividend stocks this April, including Brookfield Renewable, Energy Transfer, and W.P. Carey, which will help accelerate my path to financial independence through their growing dividends.
- Brookfield Renewable Growth Potential: The company has increased its dividend by at least 5% annually since its formation in 2011 and expects cash flow per share to grow over 10% annually, supporting its dividend growth targets.
- AI Investment Opportunity: I plan to invest the remaining approximately $100 in Brookfield Corporation, which sees AI as a significant investment trend, projecting 25% annual earnings growth over the next five years from its AI infrastructure investments.
See More
Investment Strategy Focused on Passive Income Growth
- Cash Reserve Strategy: The author plans to transfer over $1,000 in excess cash into their brokerage account in April to capitalize on future market downturns, thereby enhancing financial flexibility and preparing for potential investment gains.
- Passive Income Goal: By investing in the iShares 0-3 Month Treasury Bond ETF, currently yielding around 3.5%, the author aims to convert idle cash into a steady monthly income stream, facilitating financial independence and alleviating job security concerns due to potential AI displacement.
- High-Yield Stock Investments: The plan includes investing approximately $400 in April into Brookfield Renewable, Energy Transfer, and W.P. Carey, all of which are expected to provide growing dividends, thereby accelerating the journey towards financial freedom.
- AI Investment Outlook: The author also intends to invest about $100 in Brookfield Corporation, which is capitalizing on the AI boom and anticipates a 25% annual earnings growth over the next five years, further enhancing financial security.
See More
Brookfield Corporation's Investment Transformation
- Clear Investment Goals: Brookfield Corporation aims to achieve a 20% annual growth in distributable earnings over the next five years, and while this target is ambitious, success could significantly enhance its market performance and attract more investor interest.
- Diverse Investment Focus: The company is concentrating on five key investment categories: infrastructure, renewable power, real estate, private equity, and credit, which are viewed as crucial drivers for global growth, showcasing the company's confidence in long-term expansion.
- Strong Capital Base: Brookfield currently has approximately $180 billion in its own capital, $135 billion in insurance assets, and $1 trillion in assets under management, with steady growth in these figures being a key indicator of the company's success, reflecting strong investment returns.
- Global Investment Presence: With operations in over 50 countries, Brookfield's extensive market coverage and diversified investment portfolio position it favorably in future market competition, further solidifying its leadership in the industry.
See More
