Investment Q&A

Q: What is the date of when the new Brookfield symbols will trade? If not known, guesstimate? I remember when BIPC was split out, the share price cratered as some people received shares they didn’t want to hold. Do you think the same will happen with either BN or BAM after the split?

Q: We hold an all-equity portfolio with 40-45 stocks and ETFs. Core holdings are large-cap Canadian and U.S. companies. We assume that a full position of 40 names would be 2.5% of the portfolio. Top two holdings are BAM at 5.23% and CSU at 4.31%. At what level would you trim?
Also, the Brookfield family is presently 10.26% of the portfolio. What level would you trim there?
We are not planning to trim soon as 12 positions which are small-cap tech are sub .50% and we anticipate a reversal of large-cap dominance.

Q: Looks to have been smashed to the downside. And today is yet another ugly day. On the Flip Side how does its future look? It is down 40% from its 52 week high. Time frame and forward projections on its potential?

Q: All four securities are held in a US TFSA at ~2% - 2.5% positions each. I would like to deploy available funds to either take two of the positions to 3.5% or add to all four at 0.5% ea. Seeking market recovery growth over the next 2-4 years, which strategy would you deploy? If only two were added to, which ones would they be, if it were you?

Thanks for all you do for us little guys.

Q: Hi,
I’m confused with the last press release of Brookfield on Friday :

""...The transaction will result in the division of Brookfield into two publicly traded companies – the Corporation (Brookfield Asset Management Inc. will be renamed “Brookfield Corporation”) and the Manager with the holders of Brookfield’s class A ………becoming shareholders of the Manager on completion (the “Arrangement”).

• Brookfield Corporation and the Manager will respectively own 75% and 25% of our asset management business;

• the Class A Shares of the Corporation are expected to trade on the New York Stock Exchange (the “NYSE”) and the Toronto Stock Exchange (the “TSX”) under the new ticker symbol “BN”;

• the Manager’s class A limited voting shares (“Manager Class A Shares”) are expected to trade on the NYSE and TSX under the ticker symbol “BAM”;

• each holder of Class A Shares will receive 1 Manager Class A Share for every 4 Class A Shares held;


It looks like the actual BAM.A shares will be « renamed » BN. And "NewBam" shares issued on 1 for 4 basis. Is it right?


Do you know how long it could take to implement the changes after the Nov9 meeting? 5-10 days? I plan to transfer some shares of BAM out of my RRIF this year and I prefer to wait after the spinoff.

Thanks a lot.

Q: Hi- in a growth long term portfolio, would you own both bam and wsp. Is there any overlap? What percentages are they international?

Q: Hello Peter,
Can you please comment on good natured results? Is it fair to say Blackstone is more for income oriented investors given its dividend and Blackrock is more for growth oriented investors. Also, would be better to diversify into both instead of picking one as i already own fair amount of BAM? Is Manulife worth a hold for long term given its decent dividend? thanks very much

Q: Hello Peter,
When Brookfield first indicated that they were going to spin off the asset management unit, the stock popped alot, but then subsided. Now, the spinoff is more certain as opposed to just mentioning it, why is the stock not behaving as it did when the first announcement was made? Please provide your view. Given USA is still delaying its legalization of marijuana, I was deciding on Weed or Hut mining given both are volatile. What would make sense ? Thanks very much

Q: How do you think these rate hikes will impact BAM? The stock didn't seem to move much yesterday considering the greater then expected increase.

Thanks!

Q: BAM is an oversize percentage of our portfolio (everything else has dropped more). When they spin off 25% of their asset management business later this year, will their market cap. decrease similarly to Dell after the VMWare spin off?

Q: As a follow-up to Harry's question of June 2/22, can I ask why you rank the three companies as BAM, BX, BLK in that order? I own BLK and wonder what makes it the least attractive of the three. Thank you,

Q: Looking at one of these conglomerates in my US Spousal Rsp. All seem similar in their business mix however, BX offers higher dividend and has the largest market cap. BLK seems to offer an outsized dividend and trades accordingly.
Question, for a long term Rsp hold, which of the three is most compelling

Q: What order and at what price would you nibble at the stocks listed (already own them all at this point but no full positions other than Cost) + brief explanation why?

Is there any other screaming buys you would recommend at this time regardless of sector , Thanks for your help with my portfolio

Q: Hi,
Is it fair to the shareholders if they get only 25% of the Asset Management business? I am not quite sure how this spinoff works? Could you please explain if this is beneficial for shareholders of Bam:us or Bam.a. Thanks. Shyam

Q: Hello Peter and team,
It looks like BAM will be spinning off the asset management unit. On their earnings call, i believe they mentioned it and the stock went up quite a bit and then went down again. Now that it is confirmed, there was no reaction.. Any comments? In case they do spin it off as a shareholder would one get shares of new companies similar to their other spinoffs and would this results in surge in stock price? In other words, if you are a BAM holder , would it be good idea to buy more shares at current price of $61.00 cdn assuming it is within our allocation in our accounts. Much appreciated.

Q: Good Morning,

Of these three, what would be your order of preference to add too?

Thank You

Q: Looking at these names at current prices for a non registered account. Can you give me your top 5 names for a 7 year hold.. would any of the above names be included?

Q: Today you replied to request for your 10 US/Can highest conviction names and left off Google and BAM (my two largest positions). Is there a reason and if so why?

Q: Now that oil has recovered, I was thinking of selling my shares in XOM and wanted to buy some Canadian stocks. I am retired so I have a relatively low risk tolerance. How would you rate RY, BEP, and BAM. Are there other companies you would suggest that are stable and offer a decent dividend.

Q: If you were to sell any of the above, list in order your top 5 or 6. Or would you keep the portfolio as is for next 3 years.
Roy