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

Likes the quality of their real estate assets, the geographic breadth along with the size of projects that they are involved in. Has good, intermediate term growth potential, and is a name that attracts meaningful institutional interests. (Almost a Top Pick.)

He wants to invest with the smartest guys on Bay Street, and that’s who these people are. They are predicting that in the next 10 years they will triple their NAV, by getting more real assets and more fee bearing capital. Dividend yield of 1.25%.

Stock vs. Stock. BAM.A-T vs. BIP.UN-T. BAM has good organic growth and a nice dividend yield. They are very good at understanding the assets they own and knowing when BYthose assets are fully valued.

Among the smartest management team out there, particularly in Canada. They have a whole variety of assets in real estate, infrastructure, railroads and energy. They also manage a lot of money in funds, in which they get paid a straight up fee plus an override on profits. As those funds build up and get to the tens of billions of dollars, that amounts to an enormous cash flow, which are not assets at risk, just free money at being very good at what they do. Should be a core holding for most Canadians.

Likes this one 1 year out and for the next 5 years. Sees about 21% rising AFFO growth over the next couple of years from rising institution allocations to real assets, US economic momentum where they have 62% of their business and its robust asset management business with significant fundraising momentum. This is a bit of a call on rates staying low for longer. Yield of 1.28%.

A highly predictable company with wonderful underlying assets. Have lots of different types of assets that they manage. It is fee revenue that they generate. Have a great history of continuing to build assets. About 40% of their business is in the US, 20% in Canada and 20% in Australia. There is great visibility in the fee revenue they generate. Management has a great record of allocating capital. This could be a core position in almost any portfolio.

3.95% bonds maturing Apr 9/19. One of the themes in his 3 picks is quality. He is taking cautionary measures to guard against BBB bonds starting to underperform the market. Also, preservation of capital in these very low rates is #1 in his mind.

It went up so far so fast so if you are over exposed it is a good time to take a little profits. However, it should remain a core position. They are good financial engineers. They find acquisitions that really drop to the bottom line. It is a proxy for the global economy and it is not a bad time to sell some into the coming Christmas rally.

Brascan Jan 14, 2035 Bonds. Now ‘Brookfield’ and a solid ‘A’ rating, but you probably don’t want to own this long a bond.

Diversified globally and extremely well-managed. This gives you a basket of really strong global assets. They will benefit from pension funds and governments that want to own solid vehicles. Their record of acquisitions has been very conservative. Cash flow continues to increase. Yield of 1.29%.

Sold off from its highs of $55. An interesting play that he likes. You are getting real estate, infrastructure, utilities and into the asset management side of their business. Very defensive type business model.

He has owned it forever, one of the best managed large companies in Canada. Smart acquisitions of assets and a top notch group. These guys are constantly building wealth. If he was a pension fund manager, he would put his money with them for 10 or 15 years. This is for steady, solid appreciation over time. He likes the parent also.

Has done relatively well lately. A nice diversified holding. Bit of real estate, timber, all kinds of things. Nice long term track record. He would want to buy it at $47

He does not know seasonality on this one. Technicals look good. It has a long term upward trend that is still intact. Below its 20 day moving average, but don’t be concerned. Strong compared to the market.

Does not see a risk for the next number of years. We have recovered post-crisis. As long as we stay above the $43 level, then the breakout is not false otherwise it is negative and is not a new trend.