# BAM or BN



## 8ballcornerpocket (Jan 2, 2021)

Hi folks!
Happy holidays to all!

After the spinoff of old BAM to the new BAM and BN, I am wondering which one would you add to if you had new money to invest.

BN seems or looks like more of a growth and dividend growth stock. 
BAM, will be paying out a much higher dividend, so could be more of a income stock.

Am I on the right track of thinking?

Thank you.


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## Jimmy (May 19, 2017)

BN is the actual group of companies. Could be a little more diversified and is like owning a conglomerate basket of diversified companies. I think it could be a less volatile given its earnings are based on the earnings of the underlying companies, so long as they are steady. Good if you want to own a basket of Industrials,property, infra, renewables , insurance cos etc

BAM is now the manager buyer and seller of all these companies and gets dividends from BN. It is now more like a private equity fund. It makes $ on the capital gains when it buys and sells the companies and collecting dividends in the meantime. I think it could be more volatile depending on the schedule of acquisitions /dispositions and related capital gains/losses.

Both could be good as old BAM could both buy/sell companies at a good profit and manage them operationally.


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## MrMatt (Dec 21, 2011)

I think the concept is that BN is the new Top level managment, and BAM is like any of the other investment divisions (ie BIP, BEP etc)

Honestly the corporate structure is a mess, but I think it's an interesting concept. 

My 'understanding' or lack of is that BN will do all the corporate stuff, and the various subdivisions are basically holding companies for the different types of investments.
I also understand that it is WAY more complex than that.


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## 8ballcornerpocket (Jan 2, 2021)

Thank you for the reply's guys!

I usually hold companies that I understand, however I would not be able to explain this one to a 3 year old 
All I know it is a solid company(ies). Well according to all those BNN experts )


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## Jimmy (May 19, 2017)

It is confusing. The new BAM ( the manager) is the dividend payer paying out 90% of earnings apparently. So BAM is the one you want for dividends. I was reading it will be around 3.5% div yield. The old BAM div yield was more like 2% so that may have been motivation for the split. 

I have the old BAM so now have both w the split ( 1sh in BN and .25 sh in new BAM for every old share of BAM. My stock advisory service is in a wait and see mode to see which they like more going forward ( maybe both)

So your original post is right . Get new BAM if you want the dividend and income. Get BN if you want capital appreciation more


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## Money172375 (Jun 29, 2018)

Remind me…how is the split and issuance of the new stock treated for tax purposes?

what’s the cost base for the new stock issued?


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## Jimmy (May 19, 2017)

Money172375 said:


> Remind me…how is the split and issuance of the new stock treated for tax purposes?
> 
> what’s the cost base for the new stock issued?


It says to use 88% of the old ACB to BN , 12% to the new BAM

tax-q-a-canadian-and-us-shareholders-dec-2022.pdf (brookfield.com)


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## Money172375 (Jun 29, 2018)

Thanks. Does Adjustedcostbase.ca have settings for this? Or is it all manual entries?


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## Jimmy (May 19, 2017)

Hi Money, Sorry I just use Excel maybe others can add ideas.


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