ValueMaven Posted October 21, 2020 Share Posted October 21, 2020 I am a long standing holder of BAM and was surprised to see that BIP LP has generated a nearly 2x greater return then BAM, with equal vol over the last decade. Now that there is a c-corp (BIPC) U.S. investors can get access to this global infrastructure/data-center/toll-roll company. You could argue that this is the purest way to play the BAM families expertise (no real estate, no renewables, no P/E w/BBU etc). It's up a lot from the spin back in late March, however, I think given how attractive BIP/C is this one is worth a separate thread. It appears that BIP crashes when there are global-growth scares. Think 2016, late 2018, and early 2020. Worth buying during panics. Link to comment Share on other sites More sharing options...
chrispy Posted October 22, 2020 Share Posted October 22, 2020 No doubt BIP has had a great run and should continue to perform well. Listening to their portion of investor day is like listening to that perfect friend/cousin speak - everything is clicking and going as planned. The value of the subs changes more/less in real time when capital is deployed/sold while BAM has a little bit of a lag with building and deploying AUM and waiting years for carry to be realized. Because of this lag, I think the future could be different with BAM outperforming. Buying BIP at a fair price will most always be an attractive investment though. Link to comment Share on other sites More sharing options...
racemize Posted October 22, 2020 Share Posted October 22, 2020 No doubt BIP has had a great run and should continue to perform well. Listening to their portion of investor day is like listening to that perfect friend/cousin speak - everything is clicking and going as planned. The value of the subs changes more/less in real time when capital is deployed/sold while BAM has a little bit of a lag with building and deploying AUM and waiting years for carry to be realized. Because of this lag, I think the future could be different with BAM outperforming. Buying BIP at a fair price will most always be an attractive investment though. It is worth noting that the dividend incentives flowing up to BAM are going to be a significant headwind compared to say the first 4-5 years. Probably will do quite well still, but not as good as the beginning years. Link to comment Share on other sites More sharing options...
ValueMaven Posted February 7, 2021 Author Share Posted February 7, 2021 I was very impressed w/BIP's most recent quarter and how they managed 2020. Still cant wrap my head around the valuation difference between BIP and BIPC though. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now