Q: In a recent question about which stocks you would prioritize for TFSA, BN made the cut of the top 5 and was listed first (if this means anything). Can you provide details about BN and why it ranks as a top TFSA candidate? I assume it must have excellent potential.
5i Research Answer:
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.