Brookfield to take 25% stake in Dominion's Cove Point in $2B Deal

Dominion Energy, Inc. (D), today announced that it has entered into an agreement with Brookfield Super-Core Infrastructure Partners, an infrastructure fund managed by Brookfield Asset Management Inc. (Brookfield), in which the company will transfer a 25 percent non-controlling equity interest in Cove Point to Brookfield in exchange for cash consideration of just over $2 billion, excluding working capital. The announcement is part of Dominion Energy's previously communicated intention to establish a permanent capital structure for Cove Point.

This is very interesting in LNG Export from North East US. Shipping distance to Europe will be less compared to from Texas.

Amazon AWS Growth Profile Last 5 Years & Thoughts on AWS Value

Amazon AWS Growth Profile Last 5 Years has been amazing. Revenue went up from $1.5B in 2015 to $7.5B in 2019 which is 5 times multiple over 4 years. The Operating Income growth is slowing down as more competitors emerge include Azure and GOOGL.

IT Enterprise is a $Trillion Market so continues growth is possible. However hard to predict operating income growth. The servers and hardware need to be replaced over time Paya will be there although hardware cost keeps falling over time. As of now I think attributing a valuation of $50B to $100B for AWS is feasible assuming rosy assumptions. That still leaves $750B for rest of AMZN.

US S&P vs UK FTSE vs Euro Stoxx - Stock Index Performance Last 4 Years

Stock Index Performance Last 4 Years - US S&P vs UK FTSE vs Euro Stoxx in US$ terms shows that while US Index is up 50% taking Forex into account UK stock market is only up 2%, Euro Index is up 10% in comparison.

Brexit Uncertainty is one major factor. Also I believe the lack of innovation in Europe when compared to US which is leading in tech innovation and disruption is another major factor.
Returns over next 4 years for UK and Europe could improve if business sentiment and investment improves after Brexit issue is done one way or other. However I expect the US Index to continue to deliver with increased innovation and earnings especially with the lower corporate taxes and abatement of trade war with China. The US China trade war will be like the Cold War which will keep going but they will come to some mutually agreeable stalemate.

S&P TSX 60 vs US SnP 500 Index Performance Analysis - Last 19 Years

Last 19 Years S&P TSX Index Performance Shows that investing in Canada stock market index has not been a good bet relative to alternatives. $10K invested in 2000 is only worth $18K in 2019 Oct. The problem is that Canada has many mining and resource companies that are cyclical. Also there are not that many world leading businesses in Canada. A strategy of investing in Canadian Banking and Telecom dividend champions has worked out better.

Investing in Canadian Index at low points in the commodity cycle in 2002, 2009 and 2016 ha e produced good short term returns as a trading strategy.

Brian Kingston, CEO of Brookfield Property Group, dishes on 5M and Pier 70 in San Francisco - San Francisco Business Times

Brian Kingston, CEO of Brookfield Property Group, dishes on 5M and Pier 70 in San Francisco - San Francisco Business Times.


Brookfield Property Group, dishes on 5M and Pier 70 in San Francisco

SoftBank is reportedly seeking to take control of WeWork through a financing package

SoftBank has readied a financing package to take control of WeWork and further sideline the company’s founder Adam Neumann, The Wall Street Journal reported, citing people familiar with the matter.

SoftBank already owns one-third of WeWork, but is aiming to invest several billion dollars in additional equity and debt in the company, sources told The Journal. The potential deal would shift Neumann’s already diminished voting power to the Japanese conglomerate, according to the Journal. This would give give SoftBank a bigger role in turning around the company’s operations.

SoftBank is reportedly seeking to take control of WeWork through a financing package

Online brokers tumble after Schwab cuts commissions to zero

Sometimes I wonder if the tech disruptors are actually creating value or they are just distributing the value to consumers.

Robin Hood am online app that allows people to trade for $0 started in US in 2013. Due to its growth now all major companies are switching to $0 trade commissions. The consumer benefits not a multi billion dollar industry is decimated now. These companies now need to make money in other ways by increasing rates on margin loans or other services.

Same can be said for Uber and LYFT as well. I am not sure if these business models are sustainable. This will lead to more layoffs in these industries and more automation to cut costs.

Very dangerous times to be invested in companies as any startup can disrupt the industry. It is ever more important to be invested in companies with strong economic moat with barriers to entry including low cost of operations, secular tailwinds and network effect.l or patents.


Online brokers tumble after Schwab cuts commissions to zero