Better Buy: Brookfield Infrastructure Partners LP vs. Brookfield Asset Management

Canadian alternative asset manager Brookfield Asset Management (NYSE: BAM) has a history of creating value for investors, delivering a 16% average annual return over the last 20 years. One of the drivers of its ability to consistently generate high-level returns is that it focuses its investments on assets that it can buy at a discount to replacement cost and where it can leverage its operational expertise to get these businesses performing at a higher level.

In addition to investing its own capital, Brookfield manages money on behalf of others, earning fees in the process. Those payments enhance its profitability, enabling the company to achieve higher returns. That's evident by looking at its total return potential versus that of its infrastructure arm, Brookfield Infrastructure Partners (NYSE: BIP). While that entity should generate an excellent blend of growth and income in the years ahead, its total return likely won't match that of its parent.

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Source: Fool.com