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Brookfield Asset Management Inc Class A Limited (BAM)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Hi,
Total return, long term investor with a diversified portfolio. I have a tiny position in BAM that I either want to add to or sell. If I sell, I could put the proceeds into BN.
Does it make sense to consolidate into BN or to build a bigger position in BAM? Which is likely to have the best total return over the next few years?
Thank you, Michael
Total return, long term investor with a diversified portfolio. I have a tiny position in BAM that I either want to add to or sell. If I sell, I could put the proceeds into BN.
Does it make sense to consolidate into BN or to build a bigger position in BAM? Which is likely to have the best total return over the next few years?
Thank you, Michael
5i Research Answer:
We would side with BN as having the best potential return over the next three years. For consolidation purposes, we would be fine shifting to BN if an investor is growth-focused. If income is preferred, we would be fine consolidating into BAM. Keep in mind BN owns 75% of BAM, so there is exposure to it through BAM anyway, but the dividend yield is much lower with BN.