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  5. BAM: In response to Keith's question today you listed [Brookfield Asset Management Ltd. Class A Limited Voting Shares]
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Q: In response to Keith's question today you listed:
BAM: 28.0x
BN: 13.5x

And yet you picked BAM stock. Why is that?
Asked by JR on July 19, 2024
5i Research Answer:

It is true that BN has a lower forward P/E than BAM, but the two are completely different business models. BN focuses on compounding internally by around 15% on average going forward by retaining the majority of the earnings (higher uncertainty), while BAM is a high-quality asset manager with a royalty-like revenue stream, BAM can comfortably grow its earnings by 15% going forward while paying out most as dividends (lower risk). Generally, we like BN for growth and BAM for income. 

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