Brookfield Corp (BN.TO)

High quality. About $900B in AUM. Good, smart management over a long time. Revenues generated predominantly outside Canada. Very good returns, and this should continue. Confident in management.

The own assets essential to the global economy which buffers the company from volatile macro events. Despite a challenged private equity fundraising environment, BN has done well by raising $143 billion the past year. that they will deploy into various funds and create returns which are inconsistent and lumpy though. They raised their dividend by 8% last February, and grew 14% annually over the past 10 years. This is good for retirement.

Brookfield has an excellent management team with a great history of successful capital allocation. BN is a direct investor in real asset projects and has a lot of capital to deploy for future growth. It has been one of the best performing stocks in the TSX for several years, however, with the recent downturn in the real estate sector over the past few years, it has been under pressure. But, the real estate sector being a cyclical area is likely to return eventually, and when it does, BN is one of the best capital allocators in the space. 
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Worries over their real estate exposure turned out to not be a problem. But a 5% dividend isn't attractive when interest rates match that. He loves the Asset Management business, and trusts the CEO long-term who will invest in businesses to expand.

It is the mother-ship corporation of all the other Brookfield entities. Its goal is to grow its capital at 15% compounded annually over the long term and has done this over the last 10 years and even more over the last 20 years. Its NAV is $74 per share as of last fall so it is trading at a discount to NAV.        Buy 7  Hold 3  Sell 1

Global leader in wealth management. Real estate appears to be turning the corner. If soft landing, one of his favourite plays. Fed rate cuts and rising liquidity should help shareholder returns. Trades at 10x price to adjusted funds, growing at 26%. Yield is 0.78%.

Ticks all boxes of offense and defense, growth and value. You don't have to sweat this name, a great performer all the time. Again, not if it goes higher, but when.

Very strong business with excellent array of assets. Real estate business strong (and undervalued). Expecting more people to return to office. Strong management team that is founder led. Insurance business growing nicely too. 

Management has done a great job retaining talent. Close to $900B in assets under management. A behemoth. Trading attractively at 13x earnings.

On his watchlist. Downtrend broken, as is resistance. Could probably get to around $63. If he's right about market being overbought, could get a pullback, as all ships will fall with the tide. Likes the chart, rebound looks intact.

Complex business model that is hard to value. Better names to get exposure to in private equity space. Would not recommend to investors. 

The question was on his choice between BN and BAM. BN is Brookfield Corporation which is the old Brookfield Asset Management. BAM is the new Brookfield Asset Management. This is a result of re-structuring done in 2022. BAM has a better dividend, almost 4%, but not as much growth. BN has a small yield but more growth. It is leveraged to the economy and makes money when they sell something, so their income is lumpier than BAM. Since 2022 the total return on BAM is 28% and BN is 10%.

Likes the stock. Underperformed. BN and BAM are closely correlated. BAM just reported, increased dividend, a nice beat that some are saying merely due to taxes. He models outsized growth for 2024. Pretty attractive risk/reward. 22x, 17% distributable EPS growth. Buying at these levels will work.

A giant with many companies in many industries like real estate and private equity. The appeal of the latter is that it's less efficient than public markets, so it's easier to find mispricings. Also, given BN's scale and size, sellers approach them first before entering a competitive auction. Also, BN benefits from the secular trends of divesting from public into private markets. He owns several Brookfield stocks.

He feels strongly about the value of owning the parent, BN, rather than owning one of the subsidiary pieces.