Investment Q&A

Q: Prior to the December 2022 distribution of the new BAM, I believe that the old BAM (now BN) was trading with a dividend yield above 1%...perhaps around 1.25% or even 1.5% (?) As of this moment, the "new" BN trades at a 0.91% yield.

I usually use historical yield as a guide for my stock purchases. Am I able to make a direct yield comparison of today's BN vs. the former, or was the dividend affected in any way because of the distribution 6 months ago? If so, by approximately how much ??

Q: Hello,

TD believes the following on BN

After subtracting the market value of BN's stakes in BAM/BEP/BIP, the stock is ascribing negative value to the stake in BBU (~$1.75/share), real-estate (~$20.00/share), insurance (~$2.50/share), and carried interest (~$3.60/share). BN's ~$4bln of annual FCF provides considerable firepower to address the discount, although share buybacks must be weighed against the prospect of growing the franchise. We believe that BN's conviction in the intrinsic value of its stock price is evidenced by ~$750mm of TTM share repurchases and ~ $100mm of share purchases in the open market by the senior executive team.

Couple questions
1. This is the first time I have seen the value of BN being just reflected as just BIP,BEP, and BAM. Would you agree with this.

2. If you agree, isn’t it extremely compelling to get BBU, Reinsurance, oaktree, and property for free?

3. Would you agree with the $61 USD target or 90% upside?

Thank you!

Q: Hello Peter & Team: I am trying to trim down my financial holdings as I am spreading too thin, I'm currently retired and would like income with growth potential with 3 -5 years holdings time frame . Which of the above is most prefer to least prefer, and why.
Thank you for your great service , as always.

Q: Hello,

TD believes that BN is only pricing in BIP, BEP and BAM and ascribing no value to BBU, oaktree, insurance and the real estate.

Do you agree? If so, this must be a deal of a century?

TD- After subtracting the market value of BN's stakes in BAM/BEP/BIP, the stock is ascribing negative value to the stake in BBU (~$1.75/share), real-estate (~$20.00/share), insurance (~$2.50/share), and carried interest (~$3.60/share). BN's ~$4bln of annual FCF provides considerable firepower to address the discount, although share buybacks must be weighed against the prospect of growing the franchise. We believe that BN's conviction in the intrinsic value of its stock price is evidenced by ~$750mm of TTM share repurchases and ~ $100mm of share purchases in the open market by the senior executive team.

Q: Which Brookfield company should I add for dividend with some growth.
Thanks
John

Q: Good afternoon - I’m overweight in big tech in my TFSA and am planning to do some rebalancing. I’m looking for some non-tech suggestions please. Either US or Canada are fine.

Thanks!
Janet

Q: Hello,
Which one would you add to and why? Long term hold and I don’t need the dividend. Thank you!

Q: Down for a long time.

Keep or sell and replace with most promising
Canadian growth company

Q: I currently have a portfolio with these six holdings. What would be your current top 5-10 Cdn and/or US buys to diversify the portfolio and put a large cash balance to work for a 5-10 year time horizon with total return as the primary objective

Q: I liked the answer you gave to one of the members today on how to deal with volatility. Buy good companies run by good people at attractive valuations and hold for the long term. My question is:
What Canadian companies would you consider best fit the bill today? If you can give me 10 companies that would be super helpful.

Q: Hello,

I have a sense of how you will answer this question but I hope you can elaborate a provide a bit more of your thought process.

Both BN and bbu are “holdcos” and have a holdco discount. Which do you think is cheaper? And if BBU is significantly cheaper why not give that a bit more of a closer look as an investment? Even though BN has the Asset Manager ownership, which is the holly grail (and some ownerships in the other spins and real estate).

Q: You recently said that BN has more upside potential than the Canadian banks. However, I can't bring myself to trust BN management for a number of reasons, including opaque financials, constant shuffling of assets, too many interrelated corporate entities and emphasis on non-GAAP measures rather than good old-fashioned earnings. What gives you confidence that BN is a better long term investment than the Canadian banks?

Q: Hi, how much of BN's business is roughly in the real estate part of the corp? Can you provide a breakdown of how much of each business line makes up BN?

Also, is it correct that BN invests alongside investors in their funds? Or are they making private investments with just their own capital? If so how do they balance that ?

Q: Good morning, At times you guys talk about a good company that has a long runway in the future but for now the investor will have to be patient. Wouldn't it make more sense to sell these stocks for the time being and invest in something that should have more short term potential? Typical of an Opportunity cost. A couple examples would be Aritzia and Brookfield, BN

Q: Both these companies are having a disastrous ytd 2023.Do you see any reason to own either in 2023 given both the real estate and retail outlooks for the year

Q: Hello,

If the market were to turn over, how much lower do you believe BN could trade? Maybe you could provide a low, medium and high point based on hard or soft landing.

I’m hoping most is priced in lol.

Have a good weekend.

Q: This stock I bought at 66.00 is now 40.00 is it a sell , a hold or buy more.

Q: I am absolutely stunned by your constant promotion of BN.Why is this?
The dividend is almost none.
They have a high portion of their investments in commercial real estate,which looks more scary by the day.
The market keep telling us for a long time that BN is overpriced.
So why oh why do you keep mentioning BN in a favorable manner?
I know they are around for a long time,but so was Nortel and GE.

Q: Buy BN or BAM? why?

Q: Can you recommend 5 top value Canadian and 5 USA companies that have solid long-term businesses, with great management, a good P/E and have no debt or very low debt. Would really like to find a solid core of buy and hold names in any sector. It would appear to me that SLF would be one good choice.
Thanks!