Growing an initial investment of $5,000 into $50,000 might sound ambitious — but for disciplined, long-term investors, it’s entirely achievable. One TSX giant has already proven it can deliver this kind of growth and may be poised to do it again: Brookfield Corporation (TSX:BN).
A Compounding Powerhouse With 27,000% Total Returns
Brookfield isn’t your typical blue-chip stock — it’s a wealth compounding machine. Over the past three decades, the company has generated annualized returns of 19%, translating into a staggering +27,000% total return.
To illustrate:
- A $5,000 investment 19 years ago would be worth approximately $53,850 today.
- That represents an annualized return of just over 13%, easily beating the broader market.
Brookfield’s remarkable track record stems from its strategic focus on real assets—including infrastructure, real estate, renewable power, and private equity—backed by disciplined capital allocation and a long-term mindset.
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Volatility: A Friend for Patient Investors
Short-term market swings often create opportunities in high-quality stocks. Brookfield is no exception. Its five-year annualized return of 22% was fueled by aggressive reinvestment during the 2020 market downturn, proving that buying during pullbacks can dramatically enhance long-term gains.
The stock currently trades near $94, and while analysts view it as fairly valued, a 10–20% market dip could offer an attractive entry point for patient investors. Brookfield continues to target 15%+ annual returns, supported by its access to capital and operational expertise.
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Poised for the Next Decade of Expansion
Brookfield’s growth story is far from over. In the past year, it has:
- Monetized US$55 billion in assets, often at or above book value;
- Completed US$94 billion in financings to bolster its balance sheet; and
- Accumulated a record US$177 billion in deployable capital for future investments.
Future growth drivers include:
- Deploying its US$135 billion insurance float strategically;
- Investing in AI infrastructure and data centres to support rising global demand; and
- Expanding in renewable energy and infrastructure, capitalizing on long-term energy trends.
Although Brookfield’s dividend yield sits at 0.5%, it has increased its dividend at an average annual rate of 10.1% over the past decade — a sign of its steady commitment to shareholder returns.
The Bottom Line
Brookfield Corporation has already transformed modest investments into substantial wealth, and its fundamentals suggest that long-term investors may see that story repeat. With global scale, financial strength, and a clear growth roadmap, Brookfield remains a compelling TSX stock for those willing to think in decades, not months.
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