Brookfield NYSE: BN - Is there total loss risk?
Here is my discussion, it is from 2025, but it describes the key business factors one should know before investing in Brookfield.
Verdict: These are levered businesses taking advantage of low rates, borrowing at 3% and buying 5% assets for the spread. If and when the party ends, there is simply nothing left of value. I hope it doesn't happen as it would be a disaster for pension funds and all invested in such vehicles (like private equity), but it is a risk I don't want to even get close to.
I also discussed the direct issues with Private Equity (before the issues started surfacing).
VERDICT: In general, not a sector I wish to be close to now.
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