Brookfield Asset Management (A)

BAM.A-T

Really likes this chart. A great chart. A buy-and-hold chart that shows a solid uptrend.

Add to an existing position. You'll do well owning this for the long-term, but don't add to it now, because it's reached all-time highs. Wait for a weak report or bad headline to add more. $60 is a good buy level.

(A Top Pick Aug 01/18, Up 22%) A long-term core holding. It's a secular growth story. BAM benefits from a secular flow of funds, high fees and their breadth of expertise whenever someone is selling a birdge or tunnel. It's partially rate-sensitive, because some assets are long-duration like a bond. No, it's not a bond proxy, but a secular growth story.

He likes the asset management space. This company has been smart about how they build their portfolio. Not a big yield, but it grows by 8% per year. A great hold.

Private equity is illiquid, but BAM.A makes money off private equity and charges fees. They shouldn't be hurt as badly if there is a market correction. A good defensive play.

When will it go below $60 for me to buy it? Maybe never. Sometimes just buy a stock and don't wait for it to pull back; the stock could keep rising. BAM is one of the best stocks out there. Pension funds and endowments love these infrastructure stocks with steady earnings for a long time. They're paid management fees for managing tens of billions of dollars, so their capital isn't at risk, and they have a share of the upside. If you missed this at $60, consider that in a few years the price could climb to $100. BAM is one of his largest Canadian holdings. Wonderful company.

(A Top Pick May 27/19, Up 3%) They bought Oak Tree earlier this year and now manage $500 billion in capital, generating fees off that capital. He will hold this for years. You play real estate, infrastructure, and private equity. A fine company with a great chart. It's one of the biggest asset managers in the world. They have the advantage of scale so they can buy companies. They invest in almost every developed country and many developing ones.

(A Top Pick Aug 01/18, Up 19%) A core holding for many years. They dominate in the alternate real asset space, leading in private equity in real estate, renewable energy and infrastructure--businesses that are less efficient with higher returns. They recently bought Oaktree, a California credit manager. They are very well managed by peoeple who heavily own shares.

Her alternative to the banks. Better than the banks, because you don't have the credit risk. If we ever were to go into a recession, it's well diversified with several different asset classes. They benefit in a recession, as they can buy cheaply. And they benefit when times are good, as they can monetize those assets. Yield is 1.38%. (Analysts’ price target is $72.83)

Manages nearly $400 billion in worldwide assets (highways, sea ports, airports). BAM is loved by pension plans and insurance companies that must invest long-term with a steady return. They get both a management fee and a piece of the action. Run by the best CEO in Canada. BAM is undervalued now and should be a core holding for all Canadians. (Analysts’ price target is $73.01)

He likes them as a company. He likes how management has organized the company and all of its arms. The dividend is not great but overall if you are a long term believer in the development of infrastructure, it is a good overall macro entity to hold.

A great global presence. They own parts of several different Brookfield holdings. The asset management space is growing and they are large enough to attract new customers. They are masters at taking companies private. The low interest rate environment is conducive to them continuing to expand. Yield 1.37% (Analysts’ price target is $72.99)

(A Top Pick Oct 09/18, Up 14%) He will hold this for a long time. They're in the right space now. They have no problem raising money and buying back shares and raising dividends. BAM is a little more volatile than most utilities, but overall solid.

BAM vs. Onex They're very different companies. BAM has moved from infrastructure to being more private equity; it's larger than Onex. Onex just bought Gluskin and Sheff, branching into a new direction. You can do well owning both; buy 50/50 in them. He can't favour one over the other.