Brookfield Corporation(US:BN) Yahoo Financeยท2025-10-18 22:14Core Insights - Stock splits are utilized by companies to lower stock prices and increase share counts without affecting market capitalization [2] - Regular stock splits are generally viewed positively by investors, unlike reverse stock splits [3] Company Analysis: Brookfield - Brookfield, an international asset and wealth manager with over $1 trillion in assets under management, recently executed a three-for-two stock split on October 9 to enhance share accessibility for retail investors and improve liquidity [4] - The CEO of Brookfield, Bruce Flatt, indicated in a second-quarter letter that the company aims to enhance capital efficiency to boost return on equity by focusing on long-duration, low-risk insurance [5] - Bill Ackman's Pershing Square Capital Management has significantly invested in Brookfield, holding over 41 million shares, which constituted 19% of its portfolio by the end of the second quarter [9] - Two Sigma Advisers increased its position in Brookfield by 317% in the second quarter, now owning 31,700 shares [9] Financial Metrics - Brookfield's insurance and annuity arm has amassed $135 billion in assets, with expectations of a 20% compound annual growth rate in cash flow in the medium term [6] - The company trades at approximately 12 times earnings, which is considered a discount compared to peers like Apollo and KKR [7] - Transitioning to a capital-light strategy and focusing on insurance has historically improved valuations for financial firms, suggesting a favorable outlook for Brookfield [7]