Brookfield Corp (BN-T)

The closer you are to the top of the house in the Brookfield framework, the closer you are to the CEO and the Board, and the incentive structures tend to favour them. Doesn't have the great yield, but has upside. BAM offers you the yield and, broadly speaking, growth aspects. He'd encourage you to stay near the top of the house, depending on how much yield you need for your life circumstances.

For BIP.UN, it's not really whether Mark Carney got elected or not, or tariffs, because it's a global business. Infrastructure, toll roads, coal, etc. Very diversified. 

Prefers owning this to any of the subsidiaries. It's more diversified and very cheap. That's where management is and where they have their money; he always likes to invest next to the guy who's running the show. Trophy offices. About 85% of the value of the subsidiaries is baked into BN stock. Insurance segment. Probably 40% undervalued today. Lots of opportunity. Growing ~15% a year. Yield is 0.69%.

BN.PF.H is what you're looking for. It's going to reset at the end of the year. Reset spread is 4.17. Add 4.17 to the BOC 5-year bond yield today (2.7%). That gives you almost 7% as the reset rate at the end of the year, if the BOC rate were to remain stable. One to consider, he owns a bunch. Brookfield's a very solid company.

Typically, his Top Picks include a US name, a Canadian name, and an income name. Today all 3 picks are Canadian compounders.

Brookfield is a phenomenal, high-quality company. Will benefit from current environment. Roughly $160-170B of client capital to invest. Can grab businesses that come under pressure. Easy way for you to be counter-cyclical, sleep at night, they do the work for you. Yield is 0.7%.

Got stopped out at $77. Great company. Private equity is having a difficult time in this market, partly because so many have used leverage for deals and the cost of credit is going up.

A quality Canadian name, allowing Canadian dollars to access global markets. Their challenge is that they invest in private businesses, then sell them at a higher price. But all the current volatility has put those plans on hold. Not the end of the world--BN will continue to run those businesses.

He rotated out a few weeks ago. Seeing recent weakness in financials (with $$ also coming out of industrials and consumer discretionary). Chart shows a fairly major breakdown of support ~$78. Now the stock is rolling back up, so it's looking more encouraging. Downtrend line on the chart is ~$81-82, so we'll have to see what happens at that point.

At Investor day last September it targeted expected distributed earnings at 17% compounded annually over the next 5 years. There's another possible target of 25%. It does not have much exposure to tariffs.

Loves it, wonderful management. Ran up too much, too fast. Not surprised by pullback, as all the private equity firms have. If liquidity tightens up, these guys won't be able to easily sell projects, GAAP earnings will suffer, with lower near-term cashflow and profitability. 

A core holding in his Canadian dividend strategy. Incredibly well run by bright people for a long time. Sold off ~10%, but chart's done extremely well. Likes that CEO has bulk of his net worth invested in shares. Quality operation.

A year ago, people were worried about its exposure to real estate. Management owns 20% of the company, so it behooves them to do well for shareholders. Cashflow monster. Management believes its real estate holdings and potential fees are undervalued.

Are shrewd operators run by a smart CEO. Definitely buy on weakness. He wishes he knew what they own, but they seem to own everything that is great.

Indicated a move of head office to US, but doesn't have to do with tariffs. They're global, yet Canada provides only a small percentage of earnings. Management believes a move would encourage more US-based indices to include it, thereby broadening its potential shareholder base.

Phenomenal compounder. Valuation still at massive discount to US peers. Management closely aligned with shareholders and working hard to unlock value. He'd consider buying today. Unique position with capital allocation to maximize its portfolio.

He doesn't worry too much about tariffs, given BN's geographic diversity and type of operations. Great business, well-positioned long term. Valuation discount not as appealing as in the past. Be mindful of your position size.