Brookfield Built A Money Machine - This Is The Part I Want

Introduction

One of you asked me something in the chat last week that I have not stopped thinking about. And I know that I say that a lot. It's not a coincidence, as a lot of questions and remarks end up as articles here on Main Street Alpha.

It always sounds like part of a sales pitch when I say this, but that's what makes this community so strong. It's incredible how much research has been a joint effort of the community, so to speak.

Anyway, before I get carried away, the question was about Brookfield. Specifically, why I keep saying a total return investor is better off owning Brookfield Corporation (BN) than owning Brookfield Renewable (BEP) or Brookfield Infrastructure (BIP) for the yield. That's a fair question, as all of these tickers often get good publicity. And those two pay you real money. BN stock pays you almost nothing. So, there's a real difference, too.

And the more I looked into it, the more I realized this deserves a full article.

That's partly because the answer is more interesting than "buy the parent." It's also partly because the entire Brookfield structure is being taken apart and rebuilt right now, and most people who own these names have no idea.

I didn't know it either before I started researching for this article.

Hence, today, we are going to map the whole thing. What each entity is, who gets paid at each layer, and what kind of investor each one is built for. I will also run my TOLL+M framework across the group, though I want to be upfront about why that is a stretch first. And I will end with the one thing here worth acting on in the next four weeks.

Some of you own these names. A few of you own the wrong one.

So, let's dive in!