This Alternative Asset Manager Is One of the Best Long-Term Holds in Finance

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By Matt DiLallo – Apr 18, 2026 at 11:00AM ESTKey PointsBrookfield is capitalizing on several long-term growth trends, including investments in AI infrastructure. The company expects to deliver 25% annualized earnings growth over the next five years. Its stock price currently sits well below its estimated value. Brookfield Corporation (BN +1.40%) doesn't get the credit it deserves. The global investment firm has delivered a 19% compound annualized total return over the last 30 years, far exceeding the S&P 500's 11% annualized total return. At that rate, it would have grown a $5,000 investment into nearly $925,000. The leading alternative investment manager believes its best days could lie ahead. That makes it one of the best financial stocks to buy and hold long-term. Image source: Getty Images. Capitalizing on multiple long-term growth catalysts Brookfield is in the middle of a transformative growth phase, driven by multiple long-term trends. The company invests capital on behalf of shareholders and clients (through its alternative asset management business, Brookfield Asset Management) in companies and real assets that benefit from secular growth trends. The firm sees a once-in-a-generation opportunity to build the digital backbone to support AI. Brookfield estimates that total worldwide spending on AI infrastructure will exceed $7 trillion over the next decade. It's seizing on this opportunity by launching a fund to invest up to $100 billion in AI infrastructure assets. ExpandNYSE: BNBrookfield CorporationToday's Change(1.40%) $0.65Current Price$46.59Key Data PointsMarket Cap$104BDay's Range$46.54 - $47.5952wk Range$31.62 - $49.56Volume222KAvg Vol6.2MGross Margin26.37%Dividend Yield0.54% AI infrastructure is only one growth driver. Brookfield also sees an enormous opportunity to offer aging populations wealth products that provide retirement income (e.g., annuities and private funds). The company is also a leading global real estate investor, positioning it to capitalize on the global real estate recovery. An extremely compelling investment opportunity Brookfield expects its core businesses to deliver 20% annualized growth in distributable earnings per share over the next five years. Additionally, the company expects to generate $53 billion of cumulative free cash flow over the next five years. It plans to allocate the bulk of that cash to grow shareholder value, which it expects will boost its annualized earnings growth rate to 25% during that period. Given the company's focus on durable long-term growth drivers, it should continue growing its earnings at a strong rate well past 2030. Companies growing as rapidly as Brookfield typically trade at premium valuations. However, that's not the case with this leading alternative asset manager. Brookfield currently trades at around $45 per share, well below the company's plan value of $68 per share. It expects to increase the firm's value to $140 per share by 2030 through earnings and operational growth. It's rare to see such a high-quality company trading at such a discounted valuation. A must-own financial stock Brookfield is a wealth-creating machine. The global investment firm expects to deliver 25% annualized earnings per share growth over the next five years, driven by multiple long-term catalysts. That puts it in a strong position to deliver robust total returns, especially from today's discounted valuation. That high return potential makes Brookfield one of the best financial stocks to buy and hold long-term right now. Read NextApr 11, 2026 •By Adam LevyBillionaire Bill Ackman Has 39% of His Hedge Fund's $17.7 Billion Stock Portfolio Invested in 3 Stellar CompaniesApr 4, 2026 •By Reuben Gregg BrewerBrookfield Corporation Has Become the Next Berkshire HathawayApr 3, 2026 •By Matt DiLallo20 Best High-Yield Dividend Stocks to Buy in 2026Mar 29, 2026 •By Reuben Gregg BrewerWhat I'm Watching With Brookfield To See If They Beat The MarketMar 26, 2026 •By Matt DiLalloThis Elite Wealth-Creating Machine Is a Screaming Bargain These DaysMar 25, 2026 •By Matt DiLalloThe Best Financial Stocks to Buy With $1,000 Right NowAbout the AuthorMatt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.TMFmd19X@MatthewDiLalloStocks MentionedBrookfield CorporationNYSE: BN$46.60(+1.40%)+$0.65Brookfield Asset ManagementNYSE: BAM$49.32(+1.65%)+$0.80*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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