Summary
- The alternative asset management industry is a $300 trillion addressable market that's doubling every five years.
- This industry is leading the charge into every mega trend on earth, including green energy, infrastructure, AI, space exploration, biotech and anti-aging, and robotics.
- Blackstone Inc. and Brookfield Asset Management Ltd. are the two titans of this industry, with A-credit ratings and strong risk management. The world's richest investors trust them for a reason.
- Both have made income investors rich over the last 40 years, but for me personally one is the clear high-yield alt asset choice.
- One company's management is guiding for approximately 20% returns for the next 20 to 30 years, meaning the potential for 4X to 9X better income and returns than its rival. It's also a more stable cash-rich business model that promises both faster and less volatile dividends, making it a potentially rich retirement dream SWAN. One that could deliver 220% returns in the next five years.
This article was published on Dividend Kings on Wednesday, January 11, 2023.
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In 2014, a janitor named Ronald Read died and left $6 million to charity and $2 million to his family.
In 1995, a retired IRS auditor named Anne Scheiber, who had never made more than $4,000 per year, died with a $22 million fortune .
These are just two examples of "secret millionaires" you've probably never heard of.
You might imagine that regular people can't become millionaires without inheriting wealth, or at least getting very lucky by buying super-growth stocks like Amazon ( AMZN ) or Apple ( AAPL ) early.
Do you know what was in Ronald Read's portfolio when he died an octo-millionaire?
According to the Wall Street Journal , Reed died owning 95 stocks, and they weren't rock-star growth stocks like Amazon. Just take a look at some of the companies he owned.
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Procter & Gamble ( PG )
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JPMorgan Chase ( JPM )
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General Electric ( GE ) (down 70% off its record highs)
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Dow Chemical.
His biggest holdings were Smucker ( SJM ), CVS Health ( CVS ), and Johnson & Johnson ( JNJ ).
This Vermont janitor and gas station attendant, the first in his family to even graduate from high school, was able to achieve a net worth in the top 1.5% of Americans. From owning boring old dividend blue chips for decades.
What about Anne Scheiber? What financial sorcery did she conjure to achieve wealth in the top 0.5% of all Americans?
She didn't buy super growth stocks, she didn't master quant day trading or use options or leverage. She never made more than $4,000 per year; her IRS pension was $3,100 per year.
- $55,000 and $43,000 per year in today's money.
But for 50 years, Ms. Scheiber bought and held blue-chip stocks, optimizing for low taxes, per her experience at the IRS.
She died at the age of 101 and left her fortune to her two favorite colleges.
How many people do you know who make $4,600 per month and can build a portfolio worth $22 million?
How would you like to retire an inflation-adjusted millionaire? Who wouldn't?
Yet 45% of Americans and 35% of millionaires say it will take "a miracle" for them ever to be able to retire.
My friends, it doesn't take a miracle; it just takes blue-chip math and good risk management.
How Almost Anyone Can Retire A Millionaire
Monthly Savings | Inflation-Adjusted Portfolio After 20 Years | Inflation-Adjusted Portfolio After 30 Years | Inflation-Adjusted Portfolio After 40 Years | Inflation-Adjusted Portfolio After 50 Years |
$100 | $77,936 | $235,923 | $672,169 | $1,876,759 |
$250 | $194,840 | $589,809 | $1,680,423 | $4,691,899 |
$500 | $389,682 | $1,179,620 | $3,360,849 | $9,383,804 |
$1,000 | $779,363 | $2,359,239 | $6,721,695 | $18,767,598 |
$2,000 | $1,558,727 | $4,718,477 | $13,443,387 | $37,535,189 |
$3,000 | $2,338,091 | $7,077,716 | $20,165,083 | $56,302,791 |
(Source: DK Research Terminal, FactSet, Dave Ramsey Investment Calculator.)
Behold the table of your financial dreams! What kind of magic portfolio is capable of such wonders? This one.
- How I Built A $1 Million High-Yield Retirement Portfolio With 6 Dividend Blue Chips
- Preparing For Recession Part 36: Building A Zen Extraordinary Ultra SWAN (Z.E.U.S) Income Growth Portfolio .
In my next article, I'll go into this portfolio strategy and holdings in detail, but here's the bottom line.
The Dividend Kings ZEUS Income Growth portfolio has historically delivered 10.2% inflation-adjusted returns, and that's what analysts expect in the future.
What that means for anyone dreaming of a rich retirement is that it takes as little as $53 per month for 50 years to retire an inflation-adjusted millionaire.
If you start with nothing and can save $3,000 per month? Then you can start as late as 56 and retire at 70 with $1 million adjusted for inflation.
And this portfolio is 67% blue-chips and 33% bonds and managed futures. If you are comfortable without hedges, guess how little it takes to retire an inflation-adjusted millionaire?
- as little as four years with high enough savings (start at 66 and retire by 70);
- as little as $20 per month if you start at 20 and invest for 50 years, as Anne Scheiber did.
This is why I LOVE dividend blue chips with such passion! There is nothing on earth with the power to make financial dreams come true like blue-chip stocks.
Ronald Read and Anne Scheiber are just two examples among thousands of people just like you who retired millionaires. Not through miracles or luck, but from a focus on safety and quality first, and prudent valuation and sound risk management always.
High-Yield Dividend Rock Stars Can Turbocharge Your Wealth-Building Journey
If 12.4% annual total returns (10.2% after inflation) can make anyone a millionaire by retirement, then imagine what 13% to 20% annual returns can do?
That's what Blackstone Inc. ( BX ) and Brookfield Asset Management Ltd. ( BAM ) offer investors.
- Blackstone: A 6.6% Yielding Retirement Dream Blue-Chip
- How 4.6% Yielding Brookfield Asset Management Could Change Your Life .
Let me show you the "magic" blue-chip math behind how these kings of alternative asset management can change your life and make your rich retirement dreams come true.
Let's start with Blackstone, the slower-growing king of alternative assets.
BX currently offers about 15% total return potential, according to analysts, or 12.5% after inflation.
Blackstone's Rich Retirement "Miracle" Math
Monthly Savings | Inflation-Adjusted Portfolio After 10 Years | Inflation-Adjusted Portfolio After 20 Years | Inflation-Adjusted Portfolio After 30 Years | Inflation-Adjusted Portfolio After 40 Years | Inflation-Adjusted Portfolio After 50 Years |
$25 | $5,922 | $26,462 | $97,690 | $344,697 | $1,201,281 |
$50 | $11,845 | $52,924 | $195,380 | $689,396 | $2,402,569 |
$100 | $23,690 | $105,848 | $390,760 | $1,378,792 | $4,805,138 |
$250 | $59,225 | $264,620 | $976,900 | $3,446,980 | $12,012,845 |
$500 | $118,450 | $529,240 | $1,953,800 | $6,893,960 | $24,025,690 |
$1,000 | $236,900 | $1,058,480 | $3,907,600 | $13,787,920 | $48,051,380 |
$2,000 | $473,800 | $2,116,960 | $7,815,200 | $27,575,840 | $96,102,760 |
$3,000 | $710,700 | $3,175,440 | $11,722,800 | $41,363,760 | $144,154,140 |
(Source: FactSet, Dave Ramsey Investment Calculator.)
How much would you need to save and invest in BX each month for 50 years, assuming it can continue delivering 12.5% annual real returns, to retire an inflation-adjusted millionaire?
- Just $21 per month.
What about Brookfield? BAM has delivered 20% annual returns (what Warren Buffett has done for 55 years) for the last 37 years. And its CEO, Bruce Flatt, says that BAM sees a clear path to delivering similar returns for the next 20 years and possibly longer. That's about 17.5% inflation-adjusted return potential, according to BAM management. So, here's what the Brookfield "miracle" math looks like.
Brookfield's Rich Retirement "Miracle" Math
Monthly Savings | Inflation-Adjusted Portfolio After 10 Years | Inflation-Adjusted Portfolio After 20 Years | Inflation-Adjusted Portfolio After 30 Years | Inflation-Adjusted Portfolio After 40 Years | Inflation-Adjusted Portfolio After 50 Years |
$10 | $3,211 | $21,457 | $125,136 | $714,280 | $4,061,992 |
$25 | $8,028 | $53,643 | $312,840 | $1,785,700 | $10,154,980 |
$50 | $16,055 | $107,285 | $625,680 | $3,571,400 | $20,309,960 |
$100 | $32,110 | $214,570 | $1,251,360 | $7,142,800 | $40,619,920 |
$250 | $80,275 | $536,425 | $3,128,400 | $17,857,000 | $101,549,800 |
$500 | $160,550 | $1,072,850 | $6,256,800 | $35,714,000 | $253,874,500 |
$1,000 | $321,100 | $2,145,700 | $12,513,600 | $71,428,000 | $507,749,000 |
$2,000 | $642,200 | $4,291,400 | $25,027,200 | $142,856,000 | $1,015,498,000 |
$3,000 | $963,300 | $6,437,100 | $37,540,800 | $214,284,000 | $1,523,247,000 |
(Source: FactSet, Dave Ramsey Investment Calculator.)
Don't get me wrong, not even BAM's CEO thinks BAM has a shot at compounding at a Buffett-like 20% per year for 50 years. Even Buffett says he couldn't recreate his legendary success in the modern era.
- 20% returns for 50 years = $2.5 per month savings needed to become an inflation-adjusted millionaire.
But let me put it to you this way.
Right now, jackpot fever is sweeping the country. The last drawing for Mega millions saw 250 million tickets sold, one for every adult in the U.S.
The odds of winning this jackpot are 1 in 303 million. An investor in BAM, who buys $3,000 per month worth of its stock, would end up with $1.5 billion adjusted for inflation if they could compound for 50 years at 20%.
Do you think the odds of this happening are better than 1 in 303 million? They almost certainly are. And even if BAM doesn't deliver Buffett-like returns for half a century, the odds of retiring a millionaire with BAM, BX, or any diversified dividend blue-chip portfolio are about 303 million times greater than the lottery.
But according to BAM management, 20% returns for 20 to 30 years are possible or even likely. This means that according to BAM management, anyone with about $80 to $500 per month to invest in BAM could become a millionaire within 20 to 30 years.
OK, this is all very inspiring and exciting. The "miracle" math is elegant and backed up by countless examples of real people achieving life-changing wealth from blue-chip stocks.
But why on earth do analysts or management teams at BX and Brookfield expect such "miracle" compounding to last for decades?
The Reason EVERYONE Should Invest In Alternative Asset Managers
There are technically no industries that are "must own" for everyone. But alternative asset management is as close as you will ever find. Why? Here are $300 trillion reasons.
2018 BX investor day presentation
Five years ago, the potential global alternative asset market was estimated at $150 trillion. And it's been growing at about 15% per year since then.
Or, to put it another way, the potential total addressable market for alternative asset investing is about $300 trillion in size, of which BX currently has a 0.3% market share and BAM about 0.3% as well. In fact, the big six alternative asset managers combined have about 1% of this TAM tapped.
According to BAM, the 2nd biggest investment opportunity in human history is green energy, potentially worth $150 trillion over the next 30 years.
The single biggest investment opportunity? Alternative asset management, which is twice as large.
Why are alternative assets the ultimate gold rush? Because they encompass every part of the global economy.
- green energy
- infrastructure
- private credit
- private equity
- venture capital
- private real estate
- long/short stocks
- long/short bonds
- long/short commodities
- long/short currencies
- trend following
- leveraged investments
- options
- etc.
AI? Cloud computing? Robotics? Space? Biotechnology? Anti-aging? Fusion energy? Every imaginable breakthrough you can think of that could change the world and create trillions in new wealth alternative asset managers are investing in.
The funding for new infrastructure? $5 trillion per year, thanks to the global population growing to an estimated 11 billion by 2100. Guess who has the money to fund that? Not governments who are up to their eyeballs in debt.
But the world's super-rich? Pension funds? Sovereign wealth funds? Insurance companies? These institutions have time horizons spanning decades or even centuries, and they love alternative assets. Why? Two main reasons.
First, there are few places where you can productively invest trillions of dollars per year.
Second, the returns for alternative assets are superior to stocks.
BAM has been delivering 15% to 19% returns for its alternative asset client for almost four decades.
Those are returns on par with the greatest investors in history.
That's why BAM's growth has been extraordinary in the last 20 years alone.
- assets up 250X (32% CAGR)
- fee-bearing capital up 292X (33% CAGR)
- revenue up 218X (31% CAGR).
Now consider this incredible math, highlighting BAM's growth potential.
- 0.53% average expense ratio (very low for the returns it generates)
- $300 trillion investment opportunity (not counting the 15% growth rate in the addressable market itself)
- assume a 10% market share
- $30 trillion in additional assets under management
- $160 billion in potential additional revenue by 2052
- $163 billion in potential revenue by 2052 (14% CAGR)
- 43X potential sales growth.
And because BAM is a very capital-light model, margins would likely rise and suddenly, management's guidance for 20% returns for 20 to 30 years isn't unrealistic at all.
And remember that in 30 years the total addressable market ("TAM") for alternative assets is likely to be much bigger than it is today. In fact, if it grows at just 4% per year for the next 30 years, then the TAM for alternative asset management in 2052 would be $1 quadrillion.
What could that mean for BAM? That its potential for hypergrowth doesn't just span 20 to 30 years, as management currently claims, but potentially 40 to 50 years.
OK, so there's the reason that analysts, management, credit rating agencies, and the bond market are so bullish on alternative asset managers.
But for investors considering investing in BX and BAM, which is the better long-term investment?
Why I'm Planning To Invest Millions Into Brookfield Asset Management
My long-term plan is to invest 2.8% of my life savings into BAM, and I'll explain why that exact ratio in my next article.
How much do I plan to invest in BX? None, and here's why.
Don't get me wrong, BX and BAM are the two kings of alternative assets. If you want to own both, do so with my blessing. It's no different than owning both:
- Coca-Cola (KO) and PepsiCo ( PEP )
- Mastercard ( MA ) and Visa ( V )
- Home Depot ( HD ) and Lowe's ( LOW )
- Microsoft ( MSFT ) and Amazon ( AMZN ) - the kings of cloud computing.
But I don't feel the need to own the top two of every industry with alternative asset managers. BAM is the best fit for my needs, and let me show you the two reasons why.
Consensus Long-Term Return Potential
Investment Strategy | Yield | LT Consensus Growth | LT Consensus Total Return Potential | Long-Term Risk-Adjusted Expected Return |
Brookfield Asset Management | 4.2% | 18.7% | 22.9% | 16.0% |
Blackstone | 6.0% | 8.4% | 14.4% | 10.1% |
Vanguard Dividend Appreciation ETF | 1.9% | 10.2% | 12.1% | 8.5% |
Nasdaq | 0.8% | 10.9% | 11.7% | 8.2% |
Schwab US Dividend Equity ETF | 3.4% | 7.6% | 11.0% | 7.7% |
High-Yield Low Volatility Super SWANs | 3.8% | 6.7% | 10.5% | 7.3% |
Dividend Aristocrats | 1.9% | 8.5% | 10.4% | 7.3% |
S&P 500 | 1.7% | 8.5% | 10.2% | 7.2% |
REITs | 3.9% | 6.1% | 10.0% | 7.0% |
60/40 Retirement Portfolio | 2.1% | 5.1% | 7.2% | 5.0% |
(Source: DK Research Terminal, FactSet, Morningstar, YCharts.)
BX is expected to potentially outperform every popular investment strategy, including the Nasdaq and dividend growth blue-chips.
But BAM is expected to run circles around BX, and that's not just consensus; it's management guidance.
What does that extra 8% per year in potential returns mean for investors?
Inflation-Adjusted Consensus Return Potential: $1,000 Initial Investment
Time Frame (Years) | 7.9% CAGR Inflation-Adjusted S&P 500 Consensus | 12.1% Inflation-Adjusted BX Consensus | 20.5% CAGR Inflation-Adjusted BAM Consensus | Difference Between Inflation-Adjusted BAM Consensus And S&P Consensus |
5 | $1,465.25 | $1,773.38 | $2,544.81 | $1,079.56 |
10 | $2,146.96 | $3,144.89 | $6,476.08 | $4,329.11 |
15 | $3,145.84 | $5,577.10 | $16,480.40 | $13,334.57 |
20 (management guidance) | $4,609.44 | $9,890.34 | $41,939.55 | $37,330.11 |
25 (management guidance) | $6,753.99 | $17,539.36 | $106,728.32 | $99,974.33 |
30 (management guidance) | $9,896.29 | $31,104.02 | $271,603.66 | $261,707.37 |
35 | $14,500.55 | $55,159.37 | $691,180.62 | $676,680.07 |
40 | $21,246.95 | $97,818.74 | $1,758,925.66 | $1,737,678.71 |
45 | $31,132.11 | $173,470.18 | $4,476,137.52 | $4,445,005.41 |
50 | $45,616.37 | $307,629.22 | $11,390,934.55 | $11,345,318.19 |
(Source: DK Research Terminal, FactSet.)
BAM's management claims it could potentially deliver around 42X to 271X inflation-adjusted returns in the next few decades.
If BAM can maintain its current growth rates for 40 years or 50 years? Well, then a modest investment today could turn you into an inflation-adjusted millionaire all on its own.
Time Frame (Years) | Ratio Inflation-Adjusted BAM Consensus/BX Consensus | Ratio Inflation-Adjusted BAM Consensus vs. S&P consensus |
5 | 1.44 | 1.74 |
10 | 2.06 | 3.02 |
15 | 2.96 | 5.24 |
20 (management guidance) | 4.24 | 9.10 |
25 (management guidance) | 6.09 | 15.80 |
30 (management guidance) | 8.73 | 27.44 |
35 | 12.53 | 47.67 |
40 | 17.98 | 82.78 |
45 | 25.80 | 143.78 |
50 | 37.03 | 249.71 |
(Source: DK Research Terminal, FactSet.)
This means that BAM has the potential to deliver 4X to 9X better returns and income than BX in the coming decades. And compared to the S&P? 9X to 27X better inflation-adjusted income and wealth.
And here is the second reason I'm choosing BAM over BX for my portfolio, and this one will be of special interest to income investors.
Why Brookfield Is Likely To Have More Reliable Dividends Than Blackstone
Both BX and BAM now have variable payout policies.
- BX pays out 85% of earnings
- BAM pays out 90% of earnings.
The reason I'm keeping my BAM position small, at 2.8% of my portfolio, is because of its variable dividend policy.
How variable can alternative asset management dividends be? Let's consider BX's track record as an example.
As you can see, BX's dividend can be highly variable though it does grow steadily over time.
What does that mean in terms of total BX income for investors?
BX Generated 17% Annual Income Growth Over The Last 14 Years (With Dividend Reinvestment)
If you reinvest the dividends into BX stock (as I recommend for everyone who can afford to), the income growth tends to rack closely with total returns.
- so 14% to 15% income growth is the consensus for the future
- approximately doubling every five years.
What if you take your dividends in cash as many retirees do?
BX Generated 11% Annual Income Growth Over The Last 14 Years (Without Dividend Reinvestment)
BX is still a great long-term income growth investment for retirees as long as they size their position appropriately to compensate for the income variability.
- DK recommends a 7.5% or less max risk cap on BX
- and 10% or less on BAM.
What about BAM's dividend record?
Well, it's meaningless since BAM, up until the spinoff, was a stable, steady dividend grower.
Management points out that BAM focuses on fee-bearing assets rather than more capital-intensive investments, as some alternative asset managers pursue.
- they invest their own company capital alongside investor funds
- that's what [[BN]] (the new Brookfield Corp) is doing
- BX as well, but to a lesser extent.
In other words, BAM's revenue and earnings, what the dividends will be based on going forward each quarter, are more stable because they are locked up for several years.
Mind you, in any given quarter, there can (and will be) redemptions that are to be expected from an industry giant like BAM, which has over 500 large institutional clients.
But compared to BX, the dividend should be more stable.
How much more? There is no way to tell with certainty, since BAM today has a completely different business model than the BAM of years past.
By this, I mean that before the spinoff, BAM was the parent company and had a much more capital-intensive business. Today BN has the capital-intensive business mode (investing retained profits alongside client funds), and BAM has a 75% free cash flow margin.
Seventy-five cents of every dollar in revenue falls straight to the bottom line because BN covers BAM's expenses.
- The primary expense for the new BAM is taxes.
But here's something to give you a better idea of just how variable these asset manager dividends can be.
Blackstone Earnings And Dividend Volatility
Year | Blackstone EPS | Annual Change | Blackstone Dividend | Annual Change |
2008 | -$1.03 | NA | $1.05 | NA |
2009 | $0.63 | 161% | $1.20 | 14% |
2010 | $1.26 | 100% | $0.62 | -48% |
2011 | -$0.57 | -145% | $0.52 | -16% |
2012 | $1.77 | -411% | $0.72 | 38% |
2013 | $3.07 | 73% | $1.34 | 86% |
2014 | $3.76 | 22% | $2.12 | 58% |
2015 | $1.82 | -52% | $2.73 | 29% |
2016 | $2.00 | 10% | $1.52 | -44% |
2017 | $2.81 | 41% | $2.70 | 78% |
2018 | $2.17 | -23% | $2.15 | -20% |
2019 | $2.31 | 6% | $1.95 | -9% |
2020 | $2.65 | 15% | $2.26 | 16% |
2021 | $4.77 | 80% | $4.06 | 80% |
Annual Volatility | 155% | 99% | ||
Max | 161% | 86% | ||
Min | -411% | -48% | ||
Median | 15% | 16% | ||
Average | -9% | 20% |
(Source: FactSet Research Terminal.)
BX's earnings and dividends can be incredibly volatile. In fact, their average annual volatility over the last decade was almost 100%, though their median change was 16% per year in the right direction.
How does BAM compare?
Brookfield Earnings Volatility (Pre-Spinoff)
Year | Brookfield Asset Management EPS | Annual Change |
2008 | $0.35 | NA |
2009 | $0.25 | -29% |
2010 | $0.80 | 220% |
2011 | $1.00 | 25% |
2012 | $0.68 | -32% |
2013 | $1.11 | 63% |
2014 | $1.67 | 50% |
2015 | $1.21 | -28% |
2016 | $0.83 | -31% |
2017 | $0.72 | -13% |
2018 | $1.82 | 153% |
2019 | $1.39 | -24% |
2020 | $2.62 | 88% |
2021 | $3.20 | 22% |
Annual Volatility | 84% | |
Max | 220% | |
Min | -32% | |
Median | 22% | |
Average | 36% |
(Source: FactSet Research Terminal.)
OK, so what can we estimate from this? We'll have to wait several years to confirm what BAM's "annuity-like" revenue stream means for dividend variability.
However, the old BAM's earnings were 54% less volatile than BX's, which bodes well for a more stable income from the new BAM.
Based on this comparison, here is my preliminary conservative estimate of the kind of dividend volatility BAM investors might see in the future.
Potential Future Brookfield Asset Management Dividend Volatility
Annual Volatility | 53% |
Max | 46% |
Min | -26% |
Median | 9% |
Average | 11% |
(Source: FactSet Research Terminal.)
Note that this is a very rough estimate, and here is what analysts expect in the next two years.
BAM Dividend Consensus
Analysts expect BAM to hike its dividend by 21% in 2024, compared to 20% EPS growth next year. And given the 17% EPS growth BAM is currently expected to deliver in 2023, I'm cautiously optimistic that we should see at least two years of stable and rapidly growing income from BAM.
Bottom Line: Both Blackstone And Brookfield Asset Management Can Help You Retire Rich, But I'm Planning To Invest Into BAM
Don't get me wrong, I'm a huge fan of alternative asset managers, and BX and BAM are the industry leaders. If you buy either of them today, then in 5+ years, you'll likely be thrilled with the results. In fact, you don't even have to wait five years to make potentially strong returns in either company.
Blackstone 2025 Consensus Return Potential
BX can realistically deliver around 50% total returns in the next three years or 15% annually.
- similar to what analysts expect from BX in the coming decades.
Brookfield Asset Management 2025 Consensus Return Potential
- see this article for an explanation for how I estimate BAM's 5-year return potential
- 5 year return potential = 4.2% yield + 18.7% growth consensus = 22.9%
- + 3.3% valuation boost = 26.3% CAGR base-case
- 25% to 27% CAGR consensus range.
BAM could 3.2X in the next five years, delivering 6.5X better returns than the S&P 500.
So basically, there are several reasons why I like BAM over BX for long-term income investors.
- better short-term return potential
- better long-term return potential (4X to 9X over the next 20 to 30 years)
- likely 54% (or more) less volatile dividends
- slightly better risk management according to S&P (77th percentile for BAM and 61st for BX).
Both are a reasonable buy right now, and both are led by legends in this industry.
- Stephen Allen Schwarzman is CEO of Blackstone
- Bruce Flat is CEO of Brookfield
- which also has Howard Marks leading the credit division at OakTree, now a subsidiary of Brookfield.
Both are A-rated companies and industry giants, with BX at $900 billion in assets under management ("AUM") and BAM at $750 million but growing faster.
Both have incredible reputations among institutional clients, the kind you can only build up after 40 years of excellent returns for investors.
Both are likely to thrive for decades as the alternative asset industry prospects courtesy of a $300 trillion addressable market that's doubling every five years.
But for my ZEUS Income Growth portfolio? Into which I'll be investing tens of millions in the coming decades, and thus require me to buy millions worth of one asset manager? For me, the answer is clear.
BAM's low-cost structure is minting free cash flow and promising much faster growing and most stable dividends. So for me, it's ride or die with Bruce Flat and Howard Marks at Brookfield Asset Management.
For further details see:
Brookfield Vs. Blackstone: One Clear High-Yield Winner