Brookfield Corporation (TSX:BN) briefly surged to a record all-time high of $100.51 this week on the TSX before quickly pulling back. Despite the dip, the stock remains elevated, reflecting strong investor confidence — even after the recent spinoff of 25% of Brookfield Asset Management (TSX:BAM).
On an adjusted basis, factoring in the spinoff, Brookfield shares have gained even more than they appear to at first glance. But the question now is: With the stock near historic highs, is Brookfield still a buy?
Let’s break down what’s driving the momentum — and whether the rally has more room to run.
Also Read: Long term investing in Canada
What’s Fueling Brookfield’s Growth?
Brookfield’s surge is supported by multiple bullish factors that could contribute to long-term earnings growth:
- Major renewable energy contracts, including multi-billion-dollar deals with U.S. tech giants Microsoft and Alphabet (Google) through Brookfield Renewable Partners.
- A strong Q2 earnings beat, signaling underlying operational strength.
- Over $100 billion in dry powder (unallocated capital) at Brookfield Asset Management, ready to be deployed into new opportunities.
- Continued expansion of Brookfield’s insurance business, which some investors view as a potential “mini Berkshire Hathaway” in the making.
These catalysts have lifted investor expectations for future distributable earnings (DE). Given Brookfield’s global deal-making activity and capital reserves, those expectations seem well-grounded.
Also Read: Dividend paying stocks Canada
Confidence from Top Investors
Brookfield also enjoys backing from some of the most respected names in investing:
- Bill Ackman’s Pershing Square has made BN one of its top holdings.
- Past and current support from noted value investors like Mohnish Pabrai and Chuck Akre.
- High insider ownership, including CEO Bruce Flatt and other senior executives, which can align management’s interests with shareholders.
While not as critical as fundamentals, this type of investor confidence can be a positive signal for long-term investors.
Recent Earnings Show Momentum
Brookfield’s Q2 results reinforced its momentum:
- $1.4 billion in distributable earnings (DE)
- $1.25 billion in DE before realizations
- $0.80 DE per share before realizations, up 13% year over year
These results beat analyst expectations and point to steady growth. As new revenue streams from tech deals begin contributing and its $177 billion in uninvested capital is put to work, Brookfield’s DE could rise significantly in the coming quarters.
Its current fee-bearing capital base is also stable, offering consistent income even before new investments kick in.
Final Thoughts: Is Brookfield Still a Buy?
Brookfield is widely respected for a reason. It has a long history of outperforming the TSX Composite Index, driven by strategic investments, disciplined capital allocation, and strong leadership. With a growing earnings base, a robust pipeline of deals, and significant capital ready for deployment, Brookfield’s long-term growth story looks far from over.
While its stock has already run up, it’s not necessarily overpriced — particularly when measured against its potential. For investors seeking exposure to infrastructure, renewable energy, private equity, and insurance, Brookfield remains one of Canada’s most compelling and diversified options.
Bottom line: Even after reaching an all-time high, Brookfield stock still looks like a strong long-term hold.
Sign Up For our Newsletters to get latest updates
