Brookfield Asset Management: Is the Market Underestimating It? Exploring the Potential as a Long-Term Holding Stock

While Brookfield Asset Management’s stock price remains below $55, the company’s expanding performance seems to diverge from this market valuation. With a dividend yield of 3.3%, there may be growth opportunities that investors are overlooking.

Strong Performance Growth Demonstrates Corporate Resilience

By 2025, Brookfield Asset Management’s performance is showing clear signs of growth. Fee-related revenues have increased by 19% year-over-year, and earnings per share have risen to $1.72. Assets under management (AUM) are also steadily increasing, reaching $581 billion with an 8% growth rate.

Such performance expansion cannot be explained solely by favorable market conditions. Instead, it suggests that the company’s asset management business model is being solidly reinforced.

Continuing Aggressive Strategy with Large Fund Formation and Strategic M&A

The funding scale announced by the company clearly highlights its ambitious strategic direction. The Transformation Fund secured $20 billion, and the real estate investment division obtained $17 billion. The substantial increase in these assets under management signals future growth in fee income.

Furthermore, notable moves include the full acquisition of Oaktree and the majority stake in Angel Oak. These portfolio strengthening measures are key steps in establishing Brookfield Asset Management’s leading position in infrastructure asset management.

Launch of Major Projects in Infrastructure and AI Sectors

The $80 billion nuclear energy contract with the US government underscores the company’s deep involvement in energy infrastructure. Simultaneously, the launch of a $100 billion AI infrastructure fund, targeting an annual revenue growth rate of over 20%, holds potential as a future growth engine.

These projects indicate that Brookfield Asset Management is moving beyond traditional infrastructure investments to accelerate investments in next-generation technology sectors.

Value of Incorporating into a Japanese Stock Portfolio

As a long-term holding, Brookfield Asset Management can be a worthwhile consideration. Its stable dividend yield, continuous performance growth, and strategic business portfolio form a solid foundation for long-term asset accumulation. The current market valuation may be undervaluing the company’s intrinsic value, making it a noteworthy focus for investors.