Brookfield Corporation (NYSE: BN) is a wealth-compounding machine. The global investment firm has delivered an annualized return of around 19% over the past three-plus decades, absolutely crushing the S&P 500‘s 11% annualized return. To put that in perspective, if you invested $250 a month into Brookfield stock, you’d have made over $3.1 million in the past 30 years.
The company’s target is to deliver 15%+ compounded returns for its shareholders over the long term. It’s in a strong position to exceed that target over the next five years. It currently expects to grow its earnings per share by around 25% annually during that time frame. It has multiple growth drivers, including its rapidly expanding wealth solutions platform, its leading global asset management business, and its strong portfolio of operating companies. Brookfield is also focused on investing capital into global megatrends, including AI infrastructure, giving it a very long growth runway.
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Additionally, the company currently trades at $48 per share, a significant discount to its estimated value of $68 per share. Brookfield expects to grow the firm’s value to $140 per share by 2030, a 16% compound annual growth rate.
Given all this, Brookfield certainly has the potential to deliver annual returns of at least 15%. At that rate, a $250 a month investment in the financial stock would grow to $1.4 million in 30 years. Meanwhile, a 16% annualized return would grow that same monthly investment to over $1.7 million in 30 years.
While there’s no guarantee Brookfield can deliver that level of returns over the next three decades, that’s well within its long-term target and below its historical average. Brookfield’s high-powered return potential makes it a top stock to buy and hold.
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