When Motley Fool
pours praise on a company, investors typically sit up and take notice – which is why it’s worth noting its lavish praise for one Canadian firm.
The financial services website, known for its stock analysis, has labelled Brook Asset Management a “forever stock” – meaning that it’s such a good buy that it might be worth making it a permanent part of an investment portfolio.
According to the publication, a forever stock should have attributes such as lots of growth potential, consistent profits, be easily understandable, have a smart management team and a reasonable valuation on its trades. Of course it should also boast the ability to reinvest earnings while enjoying attractive return rates.
Brookfield Asset Management is deemed to be meeting those criteria because it is managing such a range of assets for clients. Fool
highlights that the company regularly recognizes opportunities within a certain sector, places capital into it and then attracts further capital that is used to both manage and acquire assets. At the moment, Brookfield reportedly manages in excess of $225 billion in assets across sectors including renewable energy, infrastructure, private equity and real estate.
Its asset management arm also boasts what Fool
describes as “great margins” – highlighting that it had $5.5 billion in revenue during the last quarter alone, up from $4.7 billion during the same quarter of the previous year.
In addition, while Fool
points out that it is “tricky to value” Brookfield, it highlights that the company brought in $2.49 per share from its operations during 2015 and investors can currently pick up shares which are 17 times ahead of that metric.
As such, it’s described as a potential permanent stock – high praise indeed.