Is Brookfield still a high-quality stock worth buying in 2025? The company experienced a remarkable year in 2024, with its shares appreciating by over 40%. Despite this surge, it is important to note that the stock is now more expensive than in previous years, currently trading at nearly 2 times book value compared to its 10-year average of 1.4 times book value. However, history has shown that Brookfield is not an ideal choice for short-term investors. Similar to Berkshire Hathaway, Brookfield operates with a long-term perspective, focusing on investment classes with promising futures over multiple decades.
Given this approach, it may be justifiable to pay a premium for a company that has consistently delivered long-term success. Historical data supports this, as there has never been a time in Brookfield’s history when the stock was not a good investment for those willing to hold onto it for the long haul. While short-term investors may have faced losses by overpaying and selling too soon, those who have held onto Brookfield stock for multiple decades have seen impressive long-term gains, regardless of their initial purchase price.
The future trajectory of Brookfield’s stock in 2025 is uncertain. However, for investors looking beyond just the upcoming year to 2035, 2045, and beyond, Brookfield remains a reliable choice as a blue-chip stock.
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Disclaimer: Ryan Vanzo does not hold positions in any of the stocks mentioned. The Motley Fool has disclosed positions in and recommends Berkshire Hathaway, Brookfield, and Brookfield Corporation, abiding by a disclosure policy.
