CA - The 'Wide-Moat' Infrastructure Pick: Invest Like Warren Buffett With Brookfield Infrastructure

2024-03-13 02:00:30 ET

Summary

• Buffett targets "wide-moat" businesses. While owning BNSF like him is unrealistic, Brookfield Infrastructure offers a similar path. They own essential assets (railroads, utilities), generating steady cash flow and dividends.
• Brookfield has a strong record. Since 2009, their FFO grew 15% annually, enabling consistent dividend hikes (10%). Recent acquisitions expand their data center presence and solidify income streams.
• Brookfield's valuation (P/FFO 3.7x) and potential upside (analyst target +26%) make it attractive for income-focused investors.

Introduction

Let me start this article by saying that I agree with many readers who make the case that the name "Buffett" may be a bit overused in financial articles. Often, the name is abused for clickbait. After all, who doesn't want to invest like the Oracle from Omaha?

With that said, I haven't used his name in ages and believe that this article is perfect for it. After all, if there's one thing I respect about Buffett, it's his focus on wide-moat businesses that play critical roles in our modern economies....

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