Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 18 May 2026
BN· Financial Services
Brookfield
Brookfield Corporation is a leveraged alternative-asset compounder whose 85x trailing P/E and 0.7% five-year ROIC fall outside Buffett's simple-and-cheap test.
Buffett fit
Weak fit
Owner
32
Durability
40
Management
29
Price
20
Score updated 27 Oct 2026 · analysis from 18 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Brookfield Corporation for a decade is owning Bruce Flatt's vision of through every asset class.
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Real assets are durable, but the holding-company structure has compounded against shareholders during a rising-rate cycle.
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Share count up 2.1% annually is the opposite of what owner-operators want.
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of 85.4 and a recorded 0% owner-earnings yield mean the cash math of simply does not work.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
4- 128.3% reflects fee on the asset manager
- 2EV/ of 4.0x looks cheap on the surface (though deceptive)
- 3Bruce Flatt-led capital allocator with multi-decade track record
- 4Real-asset exposure offers some inflation hedge
Concerns
6- 1 of 85.4 is impossible to justify on current earnings
- 2Five-year EPS CAGR of -25% shows accounting profitability collapsing
- 3Interest coverage of just 1.26x is uncomfortably thin
- 4Share count up 2.1% annually, dilution, not
Price history
$37.95+16.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Brookfield Corporation is a multi-strategy alternative asset manager and direct owner of real estate, infrastructure, renewable power, and private equity assets. The 0.7% five-year reflects the heavy on-balance-sheet capital model, not a lack of value creation, but it makes any Buffett-style return-on-capital screen flag it red. EPS fell at a 25% annual rate over the past five years and saw a 50.6% peak decline. data is reported as zero, which is itself a complexity warning.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 27, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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