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Brookfield Corporation Class A Limited Voting Shares (BN $62.11)
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Brookfield Wealth Solutions Ltd. Class A Exchangeable Limited Voting Shares (BNT $62.17)
Q: Have been thinking about Chris’s question Sept. 25 regarding these two companies.
So it makes sense to buy BNT because you may have better share appreciation than BN and if you don’t then you can exchange it into the higher priced BN ? Thanks. Derek.
So it makes sense to buy BNT because you may have better share appreciation than BN and if you don’t then you can exchange it into the higher priced BN ? Thanks. Derek.
5i Research Answer:
Yes and no; while BNT gives investors 'optionality' on the wealth business, BN is far more liquid and more than 8X as large. BNT would need to see very strong success over time for it to significantly do well enough to overpower BN's influence via the exchange feature. BN shares trade with significantly more liquidity and investors often prefer this. The idea is not bad but not quite the easy decision as it initially appears.