The Massive Global Reach of My “Forever Investment”

If I had to choose one stock to own for the rest of my years, it would undoubtedly be Brookfield Asset Management Inc. (NYSE: BAM).

Even if I somehow stumbled upon the Fountain of Middle Age and was able to go back in time a couple decades, I’d still choose this as my one stock over the then-fledgling tech titans.

The Toronto-based Brookfield manages $285 billion in assets for itself and its clients. It invests in real estate, infrastructure projects, renewable energy, and private equity, with properties, projects, and companies all over the globe. Brookfield was founded in 1899 as a Brazilian streetcar producer but has since evolved into a successful, global asset manager.

The company’s real estate divisions, including Brookfield Property Partners LP (NYSE: BPY), own 261 office properties around the world.

Now, these aren’t just your run-of-the-mill suburban office centers. These office towers dominate the skylines of some of the biggest cities in the world. In fact, as the largest landlord in Los Angeles, you’re looking at Brookfield-owned buildings every time you see that famous skyline on TV.

And you’ll essentially become a part-owner of these buildings once you become a BAM shareholder.

The company also has 47 million square feet of what we call “light industrial” properties. That may sound like a snoozer until you realize those properties are warehouses and shipping centers that Brookfield rents out to Amazon and other tech giants.

As you can imagine, having the largest e-commerce company in the world cut you rent checks has its advantages. And all of those millions of dollars’ worth of checks funnel straight to Brookfield.

“Infrastructure” is another term that usually makes your eyes glaze over. That is, until you understand that investing in infrastructure like shipping docks, water pipes, and cell towers means toll collecting. And toll collecting means always making money, because cars are always driving through.

This reminds me of that famous scene in “Goodfellas” where Henry Hill explains the mob’s “[expletive] you, pay me” strategy, where even if business is going poorly or even if you’re struck by lightning, the customers or clients still have to pay.

Need water in Brazil? Pay Brookfield, because it owns the pipes that transport water to your faucet. Need to dock and unload your merchant ships? Pay Brookfield, because it owns ports all over world. Want some electricity? Pay Brookfield. Cell phone call in France? Pay Brookfield.

You get the idea. This company owns the types of assets people need to live their lives. As shareholders, we get paid when those people simply go about their everyday routines.

But Brookfield’s most exciting business, in my opinion, is renewable energy, which will become one of the fastest-growing sectors for decades to come.

The firm has over 250 wind, solar, and hydroelectric facilities across North America, Latin America, and Europe that produce clean energy. That clean energy is not only desired by lots of people, but it’s also mandated by governments around the world. Just look at California, which recently passed an ambitious law requiring half of the state’s electricity to come from renewable sources by 2030.

And finally, Brookfield’s private equity arm primarily owns companies in the services sector. Again, these are businesses that fulfill everyday needs and include gas stations, real estate companies, construction firms, and energy companies.

I know that’s a ton of assets, but we’re still just scratching the surface of Brookfield’s incredible global reach.

Not to mention, we haven’t even talked about the company’s all-star management team.

These are the people making Brookfield the perfect “forever stock,” and they are, without a doubt, among the most gifted minds in the business.

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