Investment Q&A

Q: Two questions (please take as many credits as needed):

Question 1:
BN has a 73% ownership interest in Brookfield Asset Management. BAM has a market cap of about $29B. How could one calculate the value of this 73% ownership of BAM based on market cap? I wasn't sure if the 73% was a figure of the total shares outstanding (and therefore value may be calculated as 0.73 x $29B) or whether the 73% interest was outside of the publicly listed shares (and therefore value would be calculated as much higher).

Question 2:
Based on the corporate restructuring announced, it says that "If approved, BAM will own 100 per cent of the asset management business, with Brookfield Corp.’s current 73 per cent interest held directly by owning approximately the same percentage of the publicly traded shares of BAM." Can you clarify what is changing here?

Q: Hello 5i team, I am a young professional early in my career. I am looking for your top 5 stocks for 20+ year hold. No preference on risk or industry.

thank you

Q: In your response today regarding BN, you said they were looking at moving their hq to the US. I think that was a typo, since it seems only BAM is looking to move their hq and not the parent company BN, correct? Also I see some more recent info came out today, see here. Can you explain to us BAM shareholders what this means for us? Its a bit complex, and i'm not sure if us shareholders get hosed on this move. Thx

Q: Do you think it will take a rest for a while with the chart going up on the angle it has or
has it more to go?

Q: Why is their Share based compensation (SBC) so impactful and visible in the results? Is it because of the size of the company and revenue? Other companies I am sure has SBC but I rarely see it as a top headline item in earning press release.

Q: Is journaling shares from a TSX listed company to its US counterpart, a way to potentially benefit from a weakening canadian dollar and a strengthening Us dollar?

For Example, I journal my brookfield shares to the US market today, the current exchange is 1.38.
5 years from now I sell my shares in US dollars and convert back to canadian dollar at 1.45.

Does this make sense?

Q: Good day everyone. My holding in the following companies represent 25.11% of my investment portfolio across 3 registered and 1 cash account:
BN 5.00 %
BAM 2.36 %
BIPC 2.22 %
BIP.UN 1.35 %
BEPC 1.25%
For a total of 12.18 % amongst the Brookfield group of companies

CSU 5.49 %
TOI 1.81 %
LMN 1.40 %
For 8.7 % in CSU and associated companies

MLF 4.23 %

Collectively these holdings represent about 25.11 % of my holdings at the end of the 3Q.

I understand that your services are not to give personal advice but would value and appreciate your opinion on the weighing of these investments, specifically in the Brookfield group. The portfolio has done reasonably well (thanks fot 5i) but don't want to get complacent.

Much appreciated.

Q: I have been a happy holder of BN/BAM but have always found it hard to measure and take the approach that they are a smart group of ppl who also own a good chunk of the company. What financial metrics do you recommend for evaluating BN ? Regular metrics like PE and ROE don't seem to work...

Q: Hi team;
Any reason for the weakness in Canadian names today ? Namely the mentioned names for example, especially Gsy? Gsy down 10% in 2 days seems a bit drastic. Is there concern here or a bit the dip opportunity?

Thanks ,
Shane

Q: Looking to add one PE/Alt manager - can you compare BN to BX and who gets the nod?

Q: I like BN and have owned for a while mostly on the idea that they are smarter than me and doing things with money I could never do. But, how do you evaluate a company like BN? What objective metrics would I use? Regular financial like PE and ROE don't seem to fit per se...so when do I know I could sell for instance or buy some more as it's a 'bargain'?

Q: Hi,
Need to rebalance and am seeking etf and stock ideas.
Looking to:
1)Decrease canadian financials (currently hold BNS, BN, GSY, IFC, MFC, PRL, RY, TD)
2)Increase US consumer discretionary
3)Increase US real estate
4)Increase US utilities

Questions:
1)What order might YOU sell the stocks in #1 above?
2)Please provide 2 stock and 1 ETF pick you believe have decent long-term prospects for each of:
a)US consumer discretionary
b)US real estate
c)US utilities

Thank you.

Q: Hello Peter and Team. I am about to open a new TFSA account with almost 100K. Time frame of 5-8 years. Could you please recommend 4-6 growth/income stocks with 1or 2 ETF’s?

I was thinking BN, VFV, EIT.UN, TVK. Any other recommendations would be appreciated. Thanks for the amazing service. Brian

Q: Portfolio Analytics has suggested I reduce of my exposure in the Financial Services sector. My holdings consist of ACGL and BN at a full position plus AD.UN, BNS, and TD at a 1/2 position each.

My thought is to reduce BN to a half postion and sell AD.UN (after the current uptrend). I would keep ACGL for its International exposure and diversification. The banks, I just consider a long term hold

Is a full position of ACGL too high?

Is there a suggested balance amongst the subsectors?

Any other comments would be appreciated.

Thank you

Q: In response to a question on Oct 10 regarding your top 10 Cdn stocks you did not include BN. Has your enthusiasm on BN faded?

Q: Greetings 5i team,
I hold these seven companies in my TFSA in roughly equal amounts. I would like to add WELL to my TFSA. Would it be wise to shave a bit from all of the companies listed in order to do so?
Or, do you see a better solution to achieve this (ie. SELL one / two of the other positions in favour of WELL)?
Thank you as always.
SP

Q: I own both as well as stocks like Bip, Bepc, …. I want to own more of BMA and/or BN.
should I own 1 or both? And if 1 why? And if 2 why as well.

Part of my objective here is buy stocks whose size and diversity adds a degree of safety both short term and longer term. Hopefully that is doable here.

Thanks for your help.,

Q: I’m considering setting up a TFSA for a spouse who is not interested in selecting stocks/managing investments.
Should I stick to ETFs or mix ETFs with a few conservative stocks?

Q: Regardless of sector, please suggest 5 or so each Cdn and US holdings that would expect to average an 8%+ return per year including dividend and capital appreciation (can be company or ETF, but for ETF should consider fee) for 10 year hold. Thank-you!

Q: I own both KKR and BN. KKR stock price is appreciating significantly more than BN and all other stocks in the private equity realm, that I am aware of. Can a case be made to concentrate on KKR if one is not concerned about including BN to have Canadian exposure? Further, do you see any other financial stock with more pure growth potential relative to KKR?