This Wealth-Creating Machine Continues to Deliver Strong Results

Core Insights - Brookfield Corporation is expected to continue enriching its investors in the coming years, having achieved strong financial performance in 2025 [1][11] Financial Performance - In 2025, Brookfield Corporation grew its distributable earnings by 11% to a record $5.4 billion, outperforming the S&P 500's return of 18% with a total return of 21% [2] - Over the past three decades, Brookfield has delivered a 19% annual return, significantly exceeding the S&P 500's average annual return of 11% [2] Business Segments - The company's asset management business increased its fee-bearing capital to $603 billion, resulting in a 22% rise in fee-related earnings to $3 billion [5] - Brookfield's wealth solutions business saw a 24% growth in earnings, driven by strong investment performance and expansion of its insurance asset base [5] - The operating businesses, including infrastructure, renewable power, industrial services, and real estate, continue to generate increasing cash flows [5] Strategic Actions - Brookfield sold a record $91 billion in assets in the previous year, leveraging favorable market conditions to realize value from its operations-oriented investment strategy [6] - The company deployed $126 billion into new investments and repurchased over $1 billion of its shares at an average price of $36, which is a 50% discount to its estimated intrinsic value of $68 per share [6] - Brookfield recently increased its dividend payout by 17% [6] Thematic Investment Strategy - Brookfield is focusing on large-scale infrastructure investments to support AI growth, estimating a need for $7 trillion in investments over the next decade for data centers, power generation, and related infrastructure [8] - The company is partnering with Nvidia to build AI factories and has secured significant power agreements with Google and Microsoft [9] - This thematic investment strategy positions Brookfield to grow its earnings per share by over 20% annually in the next five years, aiming for total returns exceeding 15% annually [10]