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

Really likes this company. With this, you are buying a portfolio of assets in different business lines that are very well diversified. They have proven to be quite good in managing their business. The last year has been a little more volatile. Some of their oil/gas assets have been a little bit tricky. History has shown that management has great execution. The stock is consolidating nicely. As a core holding in your portfolio, it shouldn’t really hurt you, and it gets you a nice long term appreciation.

Barron’s magazine slagged the company and the stock went down. The rap against management is that it owns a lot of non-public assets and the reporter looked at how they were valuing these assets. Brookfield is forced to mark these assets to market every year because of the way international financing works. Every time the company has sold one of these assets, they have sold it for more than what they have said it was worth. This is a fabulous company with billions of dollars under management for institutional investors, that are on its balance sheets. Dividend yield of 1.5%.

There are a lot of question marks about their balance sheet. A very well-run company and have a lot of great assets. When you start questioning their accounting on how they account for some of these assets, you have to do a little bit more homework than usual. If you can’t figure it out, maybe there is a cleaner story that you can invest in that doesn’t have so much noise around the accounting.

Has dropped recently. There was an article in Barron’s on the weekend that was questioning their accounting. This has always been more asset based accounting in valuation, and the earnings are the value of your assets, as opposed to cash generation. He prefers cash generation. He is not comfortable with their growth.

Longer term this is a company he likes. He has always admired them. Management has done an amazing job. He prefers this to some of the subsequent parts, even if they sell at a discount to NAV. Recently when it sold off it was quite an opportunity. They will participate in a lot of this infrastructure building. He may initiate a position in it later this year, but it is a little rich now.

Among the most impressive companies in Canada. Management is absolutely world-class. Forward-looking, very smart and strategic in terms of assets there are acquiring, with a very wide view. Have tremendous resources at their disposal. Interestingly the stock was downgraded by a US broker today. Feels the stock has an inherent value of around $50-$55, and is an absolute must hold for every investor.

It is the poster child business for a dividend growth portfolio. They have a habit of growing the dividend. They just announced purchase of a US property. They have a high degree of discipline in their quality management. Look to enter below $40.

Preferred R. Preferred market was terrible last year, down 30% minimum. This is not a fixed income product, but an enhanced equity instrument. There is just as much risk of rates going lower than higher. This is a hybrid of an equity instrument.

Likes that the vast majority of management gets paid in shares. From an NAV point of view, he sees it as around $45, or even a little higher. Very good at buying assets at the right time and selling assets when they think they are mature.

A really good name. Trying to form a base at around the current level. These guys are really good at being alternative asset managers. Watch for levels for finding support. Make sure it holds the level where it is at and doesn’t go lower.

His largest holding and he likes it a lot. For many years this has been on a tear. Had a correction, which is rare for them. Well capitalized, very smart and able to take advantage of people in distress. This is the kind of people you want to invest in for the long time. When it dips, you buy more and just wait out the cycle.

He sold it to buy TCN-T, and then sold that. He would not own or hold this sector right now.

April 9, 2019 bond with a rate of 3.95%. Unlikely you can sell this at a higher price than what it is at now, because it is rolling down the yield curve and getting close to maturity. These bonds are very liquid and you can sell them at any time, and then pick up another one that will mature in 2 or 3 years. He would not hold this bond to maturity.

Likes the Brookfield group. They have their fingers in everything. He likes Brookfield Properties. This is the kind of world where this company can do quite well.

(A Top Pick Jan 12/15. Up 3.43%.) When other companies are in trouble, this is the time when this company shines. They have a big beautiful balance sheet that he knows they’re going to put to work. Trading near NAV, and he thinks you are going to see some phenomenal moves.