How Long-Term Investors Could Win Big With This TSX Stock
Written by Kay Ng at The Motley Fool Canada
Turning $5,000 into $50,000 may sound like a fantasy — but for patient, long-term investors, it’s very much within reach. One TSX stock, in particular, has already delivered this kind of growth and could very well do it again.
Meet Brookfield Corporation (TSX:BN) — a global powerhouse that has incredibly created generational wealth for shareholders over decades.
Let’s explore how it happened — and why it could happen again.
Brookfield isn’t just another blue-chip stock — it’s a compounding machine. According to its own data, Brookfield has delivered annualized compound returns of 19% over the past +30 years, translating to a jaw-dropping +27,000% total return.
To put that into perspective:
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If you had invested $5,000 in Brookfield stock 19 years ago, you’d be sitting on roughly $53,850 today.
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That’s an annualized return of just over 13%, comfortably outpacing the broader market.
Brookfield’s long-term success has been fueled by a consistent strategy: acquiring, developing, and managing real assets — such as infrastructure, real estate, renewable energy, and private equity — across global markets. Their focus on long-term value creation has made the stock a staple for serious investors.
Even great companies can be volatile in the short term — and that volatility can be your biggest advantage as an investor.
For example, Brookfield’s five-year annualized return is 22%, boosted by smart reinvestment during the 2020 market crash. It proves a critical point: Buying quality stocks during downturns can supercharge long-term results.
Currently trading around $94 per share, analysts believe the stock is fairly valued. That said, patient investors could benefit from waiting for a 10-20% pullback to scoop up shares at a discount.
Brookfield’s target of +15% annual returns remains intact, thanks to its disciplined approach, access to capital, and deep operational expertise.
Brookfield is not standing still. This year alone, across its diverse businesses, it
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Monetized over US$55 billion in assets, most sold at or above carrying value;
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Completed US$94 billion in financings, further strengthening its position; and
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Sitting on a record US$177 billion in deployable capital ready for future investments.
Key areas of growth include
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Investing its US$135 billion insurance float strategically and within the parameters set out by insurance regulators;
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Developing AI infrastructure and data centres to support the AI revolution; and
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Investing in renewable energy and infrastructure projects to meet rising global energy demand.
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