Is Brookfield Asset Management Stock a Buy?
Like most other stocks, Brookfield Asset Management (NYSE: BAM) has suffered the ups and downs that have come with the coronavirus pandemic over the past two months. But its carefully organized business and investing structure give it solid income capabilities that can succeed in good economic times as well as rougher ones. Read on and see why income investors might want to pay close attention while the stock is down.
Brookfield Asset Management is an alternative asset manager, which means it makes investments outside of classic investment categories such as stocks and bonds. The company invests in many businesses through its publicly traded partnerships, which include Brookfield Property Partners (NASDAQ: BPY), Brookfield Infrastructure Partners (NYSE: BIP), Brookfield Renewable Partners (NYSE: BEP), and Brookfield Business Partners (NYSE: BBU). It makes money through these investments as well as fees that it charges to its institutional and retail clients. As part of its investments in different businesses, it has strong interests in their operations and often works alongside management. The company recently invested $30 billion in various initiatives associated with its partnerships. Buying into Brookfield Asset Management is like buying into many businesses, all at once, that are hedged for times just like the current financial environment.
During the company's fourth quarter, which ended Dec. 31, assets under management increased to $545 billion and in fee-bearing capital grew to $290 billion. Fee-related earnings increased 41% year over year.
Source Fool.com
