Brookfield Asset Management (A)

Their proposal to acquire BPY saw the stock sell off by 5%. However, this sell-off has seen the price go down to his buy price of 13.5x adjusted funds from operations, around $50. A phenomenal compounder for longterm investors. Creates value efficiently for shareholders. There is a lot of demand for the types of assets they own in this environment. (Analysts’ price target is $61.69)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Their bid for BPY is a bet on the future of the real estate market. They would get the shares at a discount to where they were pre-pandemic. It will depend on future environments but it is likely a good long term move. Unlock Premium - Try 5i Free

BAM vs. BIP.UN The Brookfield companies are complex. BIP is exposed to the large-office property market. Companies are reducing their footprint here, so he's less bullish in this sector. However, he expects massive private investment as governments sell infrastructure to pay down debt, so private companies like this can take advantage. He'd favour BIP for this reason.

Remains a great alternative to low bond yields. Private equity and active management continue to be about 50% of the business, and that's where the growth is. Infrastructure and renewables have good steady eddy growth. Compelling on a PEG basis. Sees dividend growing at 10%. Yield is 1.27%. (Analysts’ price target is $56.55)

There is no alternative, it's so unique. Leader in private equity asset management space. Doesn't own, as the real estate part worries him. He does own BIP.UN and BEP.UN, as these are the least risky parts of Brookfield with the larger dividend. Watching it to see how real estate fares with the pandemic and possibly switching into BAM.A. He is still not sure since change in retail and office space behaviour is still new and we do not know how ugly it will be. 

Although the analyst says ETF, BAM.A is an asset management firm. The companies are all kind of the same. Anyone who is in the ETFs should look out. He suggests avoiding the name. The balance sheets are bank-like so they need to earn huge earnings to match their balance sheet and they don’t. They are pro-cyclical. As prices start to fall then the pro-cyclicality will start to reverse itself. These stocks are not a good place to be.

Billy Kawasaki’s Insights - Picks from 5i Research. The recent weakness should be considered an opportunity. Management tends to take a long term investment strategy that may clash with investor desire for short term moves. The company has a good track record and there is little concern in the long term. Unlock Premium - Try 5i Free

Complicated to value, but it's a diversified cash machine. Pays a modest dividend. Prefers BIP and Brookfield Renewable which pays more. You're better on the asset appreciation, not the dividend.

Blackstone vs. KKR Both good and both are global players. She likes the private equity space, and the way to invest here is through stocks like these. She plays this space through BAM. All have a strong global presence. Private equity will see continued secular growth with interest rates staying near zero. Large institutions are seeking returns in private equity and infrastructure and will invest more here.