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

A wonderful company. Very, very strong in managing private assets. They have a really interesting product portfolio. In the very near term, it may be a little challenged given that people are moving to more cyclical portfolios. He thinks this is being seen as a source of cash in the short term. As a long-term holding, he thinks it does just fine. In the near term there might be better places for new money. Although he owns a small position, he wouldn’t be adding here and it might be used as a source of cash.

It would be important for us to get above the highs of the last few years. It is probably capped for now and the risk is that we come back to support at the lows of the last couple of years. He thinks there is a more material correction coming over the next year.

Technically you have had a long consolidation over the last year and a half. If it takes out the highs then it is a positive sign. It is a long base so the case is higher. It is well set up.

You have to take a little longer-term view on this. It doesn’t look like the stock has done a whole lot in the last year, but over the last 10-15 years, it has been a huge compounder of capital and has created a lot of wealth, not only for the partners, but for many of the shareholders. They are in all the right businesses of real estate structure, private equity, power and have an excellent collection of assets. They also have a growing asset management business earning significant fees. It doesn’t pay a large dividend, but their goal is to really compound the NAV of the businesses they own over a long period of time.

(A Top Pick Jan 21/16. Up 22.23%.) This had been trading below its five-year average, and he had modelled a high growth rate. He still models it growing at 24% each year over the next couple of years, on a strong institutional aspect for real assets, as an alternative to bonds. It is not cheap relative to its 5 year, and he would wait for a pullback before buying.

He prefers the parent in this group because you are getting all the fee income and the world class management. Also, you are not as likely to get pigeonholed into a sector or area where there might be short term problems. Overall they are all good, but the management would be his choice.

Likes this name, for a whole lot of reasons, but strategically he just wants to be invested at the top of the chain. There are a lot of moving parts. The company has done tremendous things with their portfolio.

Extremely well-run. They have something like $90 billion under management, aside from the 3 major subsidiaries/partnerships. One of the smartest management in the country. If looking for growth over time, this is excellent. If looking for dividend growth, buy the subs.

The chart looks pretty good. It is building a “cup and handle” formation, and looks like it is trying to retest the highs. The price is definitely resilient, and buyers are stepping up. The only caution he would make is to check the valuation. Dividend yield of 1.6%.

A very well-run company. It has exposure to private equity, infrastructure with different subsidiaries. The stock has done very well long-term and it is a great long-term hold. Also, management owns about 15%-20%. 1.5% dividend yield.

(A Top Pick Sept 3/15. Up 10.03%.) This is doing all the right things. They are managing $250 billion for other people, and a lot of that will be fee earning. Trading at 36X earnings, but earnings may or may not matter for this company as there are a lot of moving parts. Feels the price is reasonable for such a quality company.

(Market Call Minute.) A cheaper way to get exposure to both real estate and renewable energy.

Global asset manager. They manage hard assets such as real estate or power infrastructure assets. They have a number of subsidiaries in South America. All those fees flow back up to this company. 8% cash flow yield. The dividend will grow over time. 12-15% ROI targeted in aquisitions.

Better on the US side or the Cdn side in an RRSP? It shouldn’t matter, because in the end it is just a call on the currency. They should trade, currency adjusted, at the same value. This is a great company to own. Very well-managed. Of that whole Brookfield group, this is the one that you should own.

A huge asset management company. They are across the world and have various sub funds that are quite attractive at various points in time. Looks at this as an almost “trading” situation. Right now he sees it going sideways. One of the problems is that you are dealing with a company where you are never sure what they are going to do next. Very smart management and have been very successful. When he thinks it is cheap, he will step into it.