Brookfield Corp (BN.TO)

(A Top Pick Dec 02/21, Down 23%) The original parent co. Spinoff adds about $10 to the total return, which the -23% doesn't reflect. Believes in management and strategy long term. Great alternative asset manager and compounder of wealth over decades. Property costs and rising cost of capital have been headwinds for long-duration assets.

BN vs. BAM Really likes Brookfield. His preference is to own the parent company, as it has a more unique ability than the individual silos to allocate capital across the platform. He would continue to hold the asset management spinoff, but may not add.

The new parent company. Likes the top of the pyramid because you get exposure to all the operating subsidiaries, but it can allocate capital opportunistically among those subsidiaries. Good at recycling capital. Ready cash to do M&A. So many levers to create value at a bad time in the market. Undervalued. Attractive in this environment. Yield is 1.65%. (Analysts’ price target is $67.36)