The Next Berkshire Hathaway
Web Editor, "Mad Money"
Brookfield Asset Management is the next Berkshire Hathaway.
At least that’s what Cramer thinks.
Brookfield has $70 billion in assets and uses the money to invest in property, power and infrastructure, a bull market that’s still charging, Cramer says.
The power business is great because it’s a play on clean energy – hydroelectric power stations, wind farms and more. That means it isn’t hostage to the high prices of oil, coal or natural gas. Energy independence anyone?
Governments all over the world have been divesting assets like these power stations, so Cramer could easily see Brookfield scooping them up, one plant at a time, to become a global powerhouse.
Eighty percent of the power is contracted, too, which means Brookfield already locked in its customers at a good price. If those prices sink, the business should be protected.
And Brookfield’s a ROWer. The Canadian company has plants in the U.S., Brazil and its home base. It also put in a bid for Australian commercial property owner Multiplex.
Thirty percent of Multiplex’s business is in Dubai, which Cramer loves. But even better is the company’s development, construction and management business, he says. It has 47 projects going right now.
Brookfield has a history of consistency. It’s a good earner. It has great assets in property and power, and it’s growing worldwide.
Oh, and the stock pulled back hard recently, leaving investors the perfect entry point to buy in.
Bottom Line: Could BAM become a more international version of Berkshire Hathaway ? Cramer’s betting on it.
Questions? Comments? madcap@cnbc.com
