Bill Ackman’s Investment Focus
Bill Ackman, manager of Pershing Square (NYSE: PS), has significantly invested in three key stocks: Amazon (15.3% of assets), Brookfield (14.9%), and Microsoft (12.2%). Ackman’s strategy focuses on a concentrated portfolio, which has achieved a compound annual return of nearly 16% since 2004, outperforming the S&P 500.
Ackman’s recent investments include an addition to Amazon, which plans to spend $200 billion on capital expenditures, primarily towards AI infrastructure, amid strong growth in its AWS segment. Brookfield aims to collect $25 billion in carried interest from 2025 to 2034 and anticipates doubling earnings from its insurance business within five years. Microsoft, the latest addition to his portfolio, shows revenue growth potential stemming from its cloud services and software offerings.
Currently, Ackman perceives these companies as undervalued, with Amazon’s P/E ratio at 28, Brookfield’s trailing distributable earnings at 17, and Microsoft benefitting from a growing backlog of $627 billion in contracts. Ackman expects annual earnings growth of 20% for Amazon and 25% for Brookfield this year.
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