Reduced BN position due to underwhelming growth lowering DCF-based intrinsic value; thesis collapsed relative to alternatives.

This has already happened to me and my portfolio over the past year with respect to Brookfield. If you are a longtime follower of my channel, I'm sure you know that for almost 3 years I held Brookfield stock as the largest position in my portfolio by a considerable margin.

It performed very well in this position, and more than doubled my money during the period I owned the stock.

However, as time went on, I began to realize that the company's growth continued to fall far short of its stated expectations and goals, and even lower than my own expectations.

As this situation continued over time, the value equation for this investment changed; Because, as we discussed earlier, less growth means less intrinsic value. When I entered the lower growth rates into my discounted cash flow (DCF) models , I realized that the stock was not as cheap as I had thought.

When I reached these conclusions, I decided to significantly reduce my stake in Brookfield and transfer those funds to other companies that I believed were performing better and could generate higher returns for me.

For me , this was a very logical and rational decision in my investment portfolio. The numbers didn't lie, and when I entered the figures I thought would be realistic, it turned out that the future returns were much lower than I had initially planned and expected.

Simply put, my investment thesis had somewhat collapsed, and when I introduced what I considered to be more realistic, other investments in my portfolio and in the market looked much more attractive.

And that's what happened in the end. I believed that other investments were performing better and generating higher returns, so I made the change.

But again, Brookfield was by far the largest position in my portfolio for a period of 3 to 4 years. Nevertheless, I tried not to become emotionally attached to the stock , and I tried to analyze it rationally.

As the facts continued to accumulate quarter after quarter that growth was coming in lower than their and my expectations, I reached a point where I had to accept that, change my investment thesis, and make adjustments to my portfolio based on the new information.