If you’re like me, when you’re looking for an investment for your RRSP you want something that will be solid and strong for a long, long time.
I’m a millennial, a new mom, and have another on the way. Needless to say, I can’t exactly afford to put a lot of money to the side, but what I can put I want it to perform.
That’s why today I’m focusing on Brookfield Asset Management Inc. (TSX:BAM.A). I would be here all day if I started to list everything this company based out of Toronto has its hands in, but here’s the headline. Brookfield is an alternative asset manager with holdings around the world. Those holdings and investments include real estate, renewable power, private equity and infrastructure. Its diverse portfolio has about $465 million in assets amassed over the last 120 years. Today, I’m just going to focus on the most relevant information to help you consider this for your portfolio.
To continue its strong growth, Brookfield is constantly expanding into new areas. Most recently, this included Shanghai, the business centre of China. The real estate business completed a $20 billion acquisition of a retail mall portfolio and a $15 billion portfolio of office and residential properties in the city.
Now the company is hoping to go even further, and is planning to buy a commercial property of three office towers and a retail mall at Greenland Huangpu Center in Shanghai for about $3 billion from Greenland Hong Kong Holdings Ltd. If the deal goes through, it would be one of the biggest commercial property deals in China by a foreign firm. Brookfield is currently in talks with banks for a $1 billion loan to back the purchase.
Strength in numbers
That is, the company continues to post such strong numbers that it has committed to routinely buy back shares, putting money aside to do just that.
Historically, this company has been on a steady, straight rise, currently jumping from about $2.50 at the time of its initial public offering to now at $63.04 at the time of writing. Over the last five years alone, the stock has doubled!
Brookfield gets to these numbers by consistently reporting great results. Most recently, net income rose 65% in 2018 to a record $10 billion. The company since has put about $47 billion aside to acquire any new attractive assets around the world.
And more great news for investors due to the excellent year they had the company raised its dividend to 0.21 or 1.33% at the time of writing, which represents an increase of 7%.
If you’re investing in this for the long term, which you should be, consider holding onto this company for only 10 years. You never know, things happen after all.
If we look at historic performance, 10 years ago the company traded at $12.08. If you had invested just $5,000, you would now have well over $26,000!
So again, if we look at it now and expect around the same returns (and look at the last five years, it’s not impossible!), let’s see what we get.
That’s an increase of 422%. So investing $5,000 now could get you to over $21,000! Overall, definitely not a bad investment. And who knows what could happen in another 20 years after that?
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns shares of BROOKFIELD ASSET MANAGEMENT INC. CL.A LV.