Jump to content

BIPC - Brookfield Infrastructure Corp


Recommended Posts

I am a long standing holder of BAM and was surprised to see that BIP LP has generated a nearly 2x greater return then BAM, with equal vol over the last decade.  Now that there is a c-corp (BIPC) U.S. investors can get access to this global infrastructure/data-center/toll-roll company.  You could argue that this is the purest way to play the BAM families expertise (no real estate, no renewables, no P/E w/BBU etc). It's up a lot from the spin back in late March, however, I think given how attractive BIP/C is this one is worth a separate thread.  It appears that BIP crashes when there are global-growth scares.  Think 2016, late 2018, and early 2020.  Worth buying during panics.

Link to post
Share on other sites

No doubt BIP has had a great run and should continue to perform well.  Listening to their portion of investor day is like listening to that perfect friend/cousin speak - everything is clicking and going as planned.

 

The value of the subs changes more/less in real time when capital is deployed/sold while BAM has a little bit of a lag with building and deploying AUM and waiting years for carry to be realized.  Because of this lag, I think the future could be different with BAM outperforming.  Buying BIP at a fair price will most always be an attractive investment though.

Link to post
Share on other sites

No doubt BIP has had a great run and should continue to perform well.  Listening to their portion of investor day is like listening to that perfect friend/cousin speak - everything is clicking and going as planned.

 

The value of the subs changes more/less in real time when capital is deployed/sold while BAM has a little bit of a lag with building and deploying AUM and waiting years for carry to be realized.  Because of this lag, I think the future could be different with BAM outperforming.  Buying BIP at a fair price will most always be an attractive investment though.

 

It is worth noting that the dividend incentives flowing up to BAM are going to be a significant headwind compared to say the first 4-5 years.  Probably will do quite well still, but not as good as the beginning years.

Link to post
Share on other sites
  • 3 months later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...