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This Is the One Stock I Would Own Forever

Posted On May 24, 2018 1:51 pm
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Brookfield’s Leaders Don’t Need a Crystal Ball – and That’s a Good Thing

Led by CEO Bruce Flatt, Brookfield’s management boasts a proven track record and, most importantly, these execs own about 20% of the firm.

In other words, they’re insiders with a lot of skin in the game, meaning they’re invested not just in the company but also in maintaining the company’s growth.

Mr. Flatt detailed his growth approach in the company’s Q1 shareholder letter, noting, “We are not macro investors, but micro investors. Of course, broad economic trends affect all of our businesses but what is more important to our long-term success is our ability to find great businesses in good countries that will stand the test of time, irrespective of short-term politics… in fact, the short-term noise frequently provides opportunities to acquire assets at reduced valuations (or to sell them for premium returns).”

This mirrors my own philosophy of buying companies at reduced valuations and holding them through the bombastic market noise to generate long-term profits. That’s why I trust the men at Brookfield’s helm to keep growing the company into a business that will generate revenue forever.

Again, I don’t have a crystal ball, nor do I indulge in predictions often. So looking out a few decades in the future is never easy for mere mortals like ourselves.

It is difficult to predict which technology giant will emerge dominant or which biotech company will have the most significant breakthrough.

I do not know who the winners in artificial intelligence or autonomous vehicles will be. It’s nearly impossible for anyone to accurately predict what the next disruptive discovery might be.

Despite those realities, one thing I do know is that all of these companies will need offices, warehouses, energy, transportation services, homes, fuel, and food. I know that renewable energy will be a big part of the global energy solution, and that solar, wind, and hydroelectric power will play a prominent role.

Owning Brookfield means I’m sure to see outsized long-term returns without having to (falsely) predict the future. By investing in Brookfield, I’m investing in the long-term certainties of the global economy.

Those certainties include the need for real estate, infrastructure, and energy, no matter what happens in the markets or how the geopolitical landscape changes over the next several decades.

*This has been a guest post by Money Morning*

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