Brookfield Infrastructure Partners (BIP.UN.TO)

As long as we are not in a waterfall, this is a good name. He is seeing 13% from funds operation growth over the next couple of years, from a pending Australian acquisition, growth in Brazil and toll roads in India. One of the problems is that it reports in US$ and only about 25% of their business is in the US, but 75% of their FFO (funds from operations) is hedged over the next 18-25 months to the US$. Has a good dividend which is growing. The kind of a name he would be nibbling on when he feels that the macro is a little more settled.

He wouldn’t be a buyer, because he doesn’t buy stocks over $10. However, he can see why people would buy it. It is a good company. Debt load is high which he doesn’t like. Infrastructure right now is very hot and the government is going to put a lot of money into it. A well-managed company.

Infrastructure is an important part of the portfolio, but don’t bet the farm on it. It is sensitive to interest rates. Take a partial position and wait for a pullback.

A good, long term hold for an income investor that is also looking for growth. This company is looking to buy long life assets with a very long time horizon.

He is a massive fan of the Brookfield group of companies. There are a whole bunch of different entities, so he just prefers the parent company Brookfield Asset Management (BAM.A-T) and let all the benefits accrue. This has been a great investment.

In a rising rate environment, a yield vehicle tends to underperform, because you can get risk free money cheaper than you could before. Overall he feels the Brookfield family of funds and investments is fantastic.

One of the more unique businesses within his portfolios. Their business strategy is to buy undervalued assets that are sometimes in trouble. They like to recapitalize it, restructure it, grow the business and then sell it and recycle the capital. A very difficult business model to replicate. The 5% distribution model is solid. It has been tough for them to do deals, which is why the stock has held back a little. Recently went into France and expanded into a tower telecom. He is comfortable holding this, but wouldn’t be adding to it.

He has very little visibility to understand how to think about earnings. A well-run company. He doesn’t understand the economics for holding this company for a longer period of time. The products that infrastructure companies tend to be in are very, very levered with high amounts of debt. (See comments under KKR-N.)

Likes that this a global play. Just added some telco assets in Europe. Likes the way the company is run. They are very good at acquiring assets. If you are looking to diversify out of pipelines and utilities and into infrastructure, this is a good one.

Stock vs. Stock. BAM.A-T vs. BIP.UN-T. BAM.A-T is the parent. They are very bright guys at BAM.A-T. They have opportunities to grow quicker than the parent. They are both good companies each with a good dividend yield.

Likes it. Very high quality business, run by an exceptional management team. They buy cheap depressed businesses and turn them around to sell at a profit. Recent acquisition of telecom towers in France will fit well. The dividend could grow at 10% for a total 15% yield. They do well when the markets are in turmoil because they buy distressed businesses.

Sold most of his holdings recently. A good dividend stock. The chart shows the stock is moving sideways. He is a big believer in money flow, which is basically price movement X volume. It appears that big money has been moving out of the stock for the last 6 months or so, which could be a warning sign. The days of growth are probably behind it.

(Top Pick Sep 26/13, Up 15.43%) It had a down turn recently. It has a high barrier to entry and pays a good yield.

This is a steady stock. Well diversified and good management. He likes infrastructure stocks. A good solid hold for the next 2-3 years.

You should see 8-10% total return. It is not a cheap stock, but you could put it away in the portfolio.