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

(A Top Pick Nov 26/14. Up 8.33%.) Renewable, infrastructure, improving property values in the US, asset management, private equity flows. This is a low interest rate idea. Believes it can grow 17% FFO over the next couple of years. Trading at a discount to his assumed next year’s NAV. Dividend yield of 1.59%.

This is a core holding mentality that investors should have. They have conservative, long term portfolios. A very clever major group in Canada.

He owns two of their subsidiaries because of a better growth profile. It is sitting at its highs. You are owning US$ assets. It has great global exposure. You will do well, but he prefers going down the chain for more pure plays.

His view is pretty constructive on the Brookfield universe with their hierarchy of companies. Money always flows up to the parent company. This is a conglomerate that offers a bit more diversification. A favourable company to hold.

Very diversified operationally, and with the way the stock has been beaten up it would certainly be one for a longer-term hold and at an attractive entry point.

It has been a little bit expensive, but it held up well recently. It is smart management. He prefers this to others in the family.

Ranks 448 in his overall model, borderline bottom 3^rd. 1.5% dividend yield is a mere 16% of cash flow paid out. Earnings are expected to decline by 6% in the coming 12 months, against a 20% PE. It seems to be a pricey stock without a lot of growth.

For the longest time, this continued to go along and go higher and higher and higher, to a point where it maybe got a little excessive at $50. Now there is some pullback on decent volume and is starting to build a base. He is hoping that this is the next catalyst to move it higher. Going forward into the new year, he would have no problem owning this.

He loves the ideas of scaling into a position in a quality company and this is one of them. Regardless of how good the management is, it will go down if the market goes down.

Very good allocators of capital. If you want to give your money to somebody to look after and allocate it responsibly, this company is great. Have infrastructure assets and property all around the world. They are kind of cyclical investors as well. He doesn’t see a ton of upside, but it’s a good stable place to be.

(Top Pick Jan 29/15, Up 6.67%) Will continue to be a solid performer. It tends to get pushed into the basket of interest sensitive’s, but he does not feel they are interest sensitive. He will continue to buy more.

(Market Call Minute) It has come back a little here.

Does operating in 8 different business segments detract from its overall focus? We’ll see the answer going forward, but meanwhile they are hiring a lot of smart people. Assets are assets and what they are focusing on are good quality long life assets that have some inflation protection, and using a reasonable amount of debt to make their acquisitions. As their different entities grow, all the dividends flow up to the parent.

A great core position in a portfolio, because you get exposure to the other businesses. Just reported and it wasn’t a fantastic quarter. For some strange reason the stock sold off 6%. He would be adding anywhere in the $40-$45 area. World class management and world-class assets. They have a super long time horizon when they are buying assets, so their valuation that they can pay for these acquisitions is fantastic. The most exciting thing is that they are becoming an asset management company.

He would prefer some of their subsidiaries. But if you have a long term horizon, he would prefer this one. Short term BEP.UN-T would do better.