BAM - Brookfield Asset Manager: How Risky Is An Investment?
2024-04-08 11:24:06 ET
Summary
- Brookfield Asset Management reported full-year results for fiscal 2023 and growth is slowing down.
- The company is still able to raise capital and has a lot of "dry powder" it can use in the years to come.
- Nevertheless, I would be very cautious due to the position in the short- and long-term cycle, banks struggling and financials not being the best sector during bear markets.
- I also think management is too optimistic about growth in the years to come and the stock is a "Hold" at best.
I have already been cautious about Brookfield Asset Management ( BAM ) in my last two articles. And although Brookfield Asset Management did not outperform the S&P 500 ( SPY ) over the last year, it performed extremely well in the last few months.
My last article about Brookfield Asset Management was published at the beginning of November 2023 when the stock was trading for $31.50. Back then, I rated the stock as a “Hold” although the stock was not really overvalued. Now, Brookfield Asset Management is trading for $41, and the picture is a little different. Of course, I was wrong over the last few months (short-term) as the stock increased 36% in the meantime, which is a very good return for that timeframe (and clearly did beat the S&P 500 with “only” 21% return)....
Brookfield Asset Manager: How Risky Is An Investment?