Brookfield Asset Management Inc (A) (BAM.A.TO)

(A Top Pick May 08/18, Up 27%) Global in scope with operating subsidiaries that are publicly traded. They've done a lot of transactions in recent years. They're successful in buying distressed or non-core assets or taking companies private. They're very good at raising funds. Their client base (institutional clients and pension funds) is large. They bought Oak Tree Financial, focussed on distressed debt to diversify.

It is an amazing company. He cycled out of BAM.A-T to focus on BBU.UN-T. He was blown away in September about how they have built out their infrastructure. BAM.A-T is a great company and most people should be owning it.

You can own any Brookfield stock and BAM is at the top. Smart managers. With this you're buying the international economy, not just Canada. But instead of buying BAM, look at its AGM notes to see what subsidiary they talk up the most--that's the one they feel is most undervalued. This year, it's BPY (Brookfield Property). BPY pays a good yield. He'd rather buy that than BAM itself.

They just bought Oak Tree, enhancing BAM's long-term positioning in credit. He sees 10% annual growth rate. Still not expensive. A safe company. They're doing all the right things. This is one of his top 5 Canadian stocks. You can buy either the US or Canadian version of this stock.

Which chart to look at if you're unsure about your investment horizon? If you're shorter-term investor, look at the 20-day moving average; intermediate 50-day; and long-term is the 200-day moving average which is most investors. BAM's 200-day is still pointing higher and is still doing quite well, but short-term it broke its level of support. It's a question mark if BAM can chart a higher high to maintain a long term positive trend.