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

To what extent does it suffer from a holding company type discount to the value of its assets? Is that discount stable relative to earnings growth and growth in the value of its assets and, in which case, does it really have an impact on the value as an investment? One of the largest asset managers in the country. Recently spun off their real estate holdings into Brookfield Property Partners (BPY-N). Brookfield Asset Management on its own does have a percentage of holdco discount. If you look towards the entities like BPY, the holdco discount is even larger. His choice is to owning this because as a holder, he is aligned with the management team 1 for 1. Going forward that is his preference in terms of ownership. This one has held up very well in terms of this downturn and is trading just slightly above its NAV.

(A Top Pick June 7/12. Up 4.5%.) He has had a lot of exposure for 3 years to real assets that generate cash flow. This one is a great example of that. He has been steadily moving his asset base from Canada to the US so he now owns more US real estate assets. However, this is still a very compelling investment.

Higher dividend payers around the world are getting hit. Nothing specific in this stock. People are perhaps making an asset allocation call.

He likes being on top of the mix. The company is managing tremendous number amounts of assets for others. Return of equity goes up and up.

Property, infrastructure and renewable power. A long term play of 5-10 years. Long term goal is to increase the amount of fee-generating assets. As they do that you see things like last quarter when core earnings were up 22% and that will happen again.

It trades around net asset value. Likes to own it since it owns all the other parts. He has always owned this part of the asset. Thinks it is a well run company. Infrastructure, power and property businesses. Can buy assets very, very cheap.

Does the fact that this is a conglomerate affect how you would assess its value and prospects for growth? He has a NAV of $40 so it is trading at about an 8% discount. This company characterizes its future growth through what their NAV is. They say that over the next 9 years, there is going to be a big transfer away from bond yields and into real assets, which will drive their adjusted funds rate about 13% annualized over the next 9 years. There could be near-term weakness.

He has Brookfield infrastructure. This one has been fabulous to own. Broke out in 2012 and is now having a pretty sizable correction. Support level around $36 will probably hold but you have to make sure it does. As long as it does not take out $36 you are probably ok.

This falls into the camp of companies which have a very strong sustainable, predictable cash flow. Feels the market is prepared to pay a premium for predictability and durability. There is some research that calls into question of how financials are presented, which is impacting the stock somewhat.

(A Top Pick Feb 14/12. Up 26.23%.) All they have done over the last year is to continue to grow their NAV, continue to increase their cash flow and continue to increase the dividend. Very happy with it. Worth in the $40’s at this point.

A great way to access sectors that are tough to access. Asset management, power. Well exposed to US residential housing. 12-15% growth over next 5 years. They are opportunistic buyers.

Their dividend could be increased. Thinks the last time was 2010. Current yield is 1.5% and he prefers to see a little more dividend growth. The problem for him is that this is not really a transparent business. Good managers and have done a good job.

Asset management company in property, infrastructure and renewable energy. What is really key is that they are really great operators. They buy assets very well. Trades at a discount to its NAV. Nice dividend yield. A lot of infrastructure by governments will have to be sold off and this company is very good at buying these assets and running them.

( A Top Pick Dec 20/11. Up 29.84%.)

(A Top Pick Dec 28/11. Up 29.13%.) Have the complete set of underlying operating subsidiaries and this is a cheap way in.