Daniel Pronk

"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."

"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 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"

"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"

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

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

"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, 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"

"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"

"And the answer is because I wanted [717s] to reduce my exposure due to the [720s] execution risk and lower expected [722s] returns. But I still think the long-term [724s] underlying thesis is here."

"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."

"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."

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

"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."

"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."

"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."

"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."

"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 then the TLDDR for why I [91s] decided to reduce my overall Brookfield [93s] Corporation exposure is because the [96s] business is now on track to miss its [98s] 2025 guidance that it put out."

"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."

"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"

"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 also [1474s] think that it is going to co"

"Now, to put [692s] this in perspective, AMD's data center [694s] business, its data center revenue, is [696s] about 17 billion dollars. This means [699s] that Amazon's chips business is now [702s] larger than AMD's data center business, [705s] its data center revenue."

"So, I do actually believe that [1085s] Amazon stock is still undervalued in the [1087s] market, and I'm even considering picking [1090s] up some more shares after reading the [1091s] shareholder letter because I think that [1093s] it is extremely bullish."

"All right, let's now move on and [1127s] discuss Meta's new model, which is Muse [1130s] Spark, because the stock has been [1132s] rallying pretty aggressively since they [1134s] announced this new model."

"So with that [23s] being said, let's just hop right into [25s] the video and let's start off by [26s] discussing Amazon's recent stock price [28s] surge because it's up roughly 20% from [31s] the lows that it set in just over the [33s] past couple of weeks."

"And I know that Amazon stock is [1034s] up over 20% over the past couple of [1036s] weeks and it's right back to all-time [1037s] highs. But you have to also understand [1039s] that Amazon's stock has been kind of [1042s] underappreciated over the past few years [1045s] because the fundamentals of this [1046s] business have been growing incredibly [1048s] well, but the share price hasn't really [1050s] been doing all that much. So, I think [1052s] the stock was underappreciated and now [1054s] t"

"Amazon [652s] and Apple enter agreement for Amazon Leo [655s] to provide satellite services for [657s] supported iPhones and Apple Watch [659s] models, allowing users to text emergency [662s] services, message friends and family, [664s] request roadside assistance, and more."

"And I can see the real value in a service like [922s] Amazon. And over the long term, I think [924s] that this service is going to save [926s] people's lives and overall just improve [928s] the safety of traveling and being out in [931s] the mountains and whatnot. And that's [933s] partly the reason why I'm so bullish on [934s] Amazon Leo over the longer term"

"As many of [18s] you know, I do own Amazon and Meta's [20s] stocks and these are stocks that I have [22s] been saying are looking cheap for [24s] months. And surprisingly, even though [25s] they just rallied over 20%, both of [27s] them, I do still think that they are [29s] selling below fair value."