Tag Archives: TSX:BBU.UN

This Growth Stock is Priced at a Tremendous Discount

Summary

  • Brookfield Business Partners has +30 years of proven track record in investing and managing businesses on a global basis.
  • It aims for returns of 15-20%.
  • Buying the stock on big corrections can lead to even higher returns for you.
  • The risks lie in the strong reliance on management competency and the limited partnership having volatile earnings/cash flows from buying and selling businesses. This makes it very difficult to value the stock.

What Does BBU Do?

Brookfield Business Partners LP (TSX:BBU.UN)(NYSE:BBU) acquires high-quality businesses that are either market leaders or are businesses that it can improve on by applying its global investing and operational expertise.

Ultimately, BBU believes that the businesses that it acquires will generate strong cash flow — if not now, then in the future (after it improves the operations). When a business has maximized its value, BBU would sell it and redeploy the proceeds in better opportunities for higher returns.

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