BAM

"But given where a lot of other [618s] stocks are in the market like Amazon, [620s] Meta, Microsoft, Brookfield Asset [622s] Management, Marcato, Libre, I simply [624s] think that those stocks are offering [626s] much more value here and those [628s] businesses are also growing much [630s] quicker."

"Brookfield Asset Management"

"So getting back to Brookfield asset management, This is my favorite asset manager because Brooksfield's entire business is centered around owning physical assets that make up the backbone of the global economy."

"So I think that Brookfield [862s] Asset Management has a more cleaner [864s] story for the AI buildout and also we'll [867s] see more tailwinds and higher future [869s] growth rates and I think the historical [871s] execution of this business is really [873s] just because it is such a cleaner story."

"However, Brookfield [688s] Asset Management is the one shining star [691s] that's actually been continuing to [692s] execute, continuing to hit its targets. [694s] And I actually think that this business [696s] is on track to beat its targets [698s] specifically for this business. And that [700s] is part of the reason why I have rotated [702s] more of my BN into BAM because BAM has a [706s] much better execution history."

"So the TLDDR [78s] is that Brookfield Asset Management has [81s] a better, more consistent track record, [83s] stronger execution, and I believe is [85s] offering more value. So that is the [87s] TLDDR for why I made the rotation from [89s] BN to BAM."

"And we can [482s] see that the asset management business [483s] is growing. Its earnings, it's doing [485s] strong."

"As I have been saying, [893s] Brookfield asset management has [895s] continued to perform well and BN owns [897s] 73% of that."

"And we can see that [408s] BAM is projected to grow to $4.2 billion [410s] of earnings by 2030. Again, I think [413s] they're actually on track and can [414s] achieve this."

"Now the [279s] important thing to point out here is [281s] that BAM is actually on track to do [283s] these numbers and beat these numbers and [285s] the insurance business is actually on [287s] track."

"But at the same time, I've [18s] also reduced my overall Brookfield [20s] exposure in my portfolio from over 20% [23s] to around 10 to 11% now. And again, with [26s] the majority of that being in Brookfield [28s] Asset Management and not in Brookfield [30s] Corporation"

"And I actually think [215s] that this target right here for BAM is [217s] going to be met this year. However, [219s] Brookfield's entire outlook for 2026 [221s] tells a little bit of a different story. [223s] So again, I believe that the fee related [225s] earnings for BAM is actually going to be [227s] hit. So I put a check mark."

"And here you [1074s] can see that BAM's historical median [1076s] price to earnings ratio has been 34.5. [1079s] And this business sells for a premium [1081s] because it has 60% profit margins. It's [1084s] growing by 20% per year and it pays out [1086s] all of its profits as a dividend that [1088s] grows over time. So it is a very [1090s] attractive stock for the market and for [1092s] investors and that is why it has [1094s] commanded such a high multiple [1096s] historically. Now today BAM is"

"So for all of [1147s] the reasons that I have discussed in [1148s] this video, that is why I have rotated a [1150s] significant amount of my BN position [1152s] into BAM and also reduced my Brookfield [1154s] Corporation position overall. It really [1157s] comes down to the fact that I truly [1159s] believe BAM is offering more value and [1161s] higher return potential from here."

"And in 2024, they were [355s] expecting the Brookfield asset [357s] management business to do $3.7 billion [359s] of earnings by 2029. And again, I [362s] actually think that this is going to be [364s] hit. BAM is doing a very good job [366s] growing their business. And the outlook [368s] for that company is very strong."

"However, a large portion [813s] of this bullishness is also related to [816s] Brookfield Asset Management. BAM is [818s] actually the company managing that $200 [820s] billion, and they're the company working [822s] with these sovereign governments to [824s] build their data infrastructure. They're [826s] going to be managing all of the capital. [828s] So that tailwind is actually mostly for [831s] BAM as well and it will benefit [833s] Brookfield Corporation because they own [835s] 73% of BAM"

"The number one position here is [398s] Brookfield Corp, 17.6%."

"Then Brookfield"

"But what caused me to believe that this [900s] stock is actually looking quite cheap [900s] right now is their outlook. because the [902s] CEO, he actually did an interview on [904s] CNBC, but in the conference call, he [907s] basically said, he damn near guaranteed [910s] that Brookfield Asset Management is [912s] going to grow over 20% this year."

"I also think that this stock is offering more value than Brookfield's Corporation. And on top of that, it pays a very nice 4.3% dividend in the stock market today. And this dividend should continue to grow. So, I'm adding additional income to my portfolio by making this switch as well as increasing my future potential returns because I think that BAM could offer a higher compounded annual growth rate from here. So yes, I have officially made the switch and I have trimmed down my Brookfield Corpo"

"Brookfield Asset Management also had a record quarter and year for fundraising."

"BAM increased its annual earnings growth targets to 20% over the next 5 years."

"Brookfield Asset Management's historical trailing 12 months price to earnings ratio."

"I sold it to rotate that capital into Brookfield Corporation, the BN ticker. I simply thought that BAM was getting overvalued and BN was offering a significant amount more value at that time. But over the past 18 months, I now think that this relationship of value has flipped again, where I now think that there's a very strong argument that BAM is offering more value than BN at the respective prices. So, I have trimmed down my BN position and rotated that capital into BAM."

"let's take a look at my Brookfield Asset Management DCF."

"Overall, based on what I can see from Brookfield Asset Management's fundamentals and their reports, it seems like the business is seeing an accelerated demand for their types of strategies and assets that they own. And I think that this demand will only continue over the coming years. So I think that this business is well set up to see a continued acceleration to its fundamentals this year and over the next few years as well."

"why would I trim down my BN position to rotate it into BAM if BAM is only offering a roughly 0.5% higher compounded annual growth rate"