Bill Ackman Invests $2.4 Billion in Microsoft, Describing It as a Core Holding at an Attractive Valuation and His Reasons for Backing Big Tech

Key Points

Bill Ackman, founder and CEO of Pershing Square (NYSE: PS), recently increased the firm’s investment in Microsoft (NASDAQ: MSFT), acquiring over 6.2 million shares worth approximately $2.3 billion as of June. This move demonstrates Ackman’s bullish outlook on the tech sector, which accounted for 40% of Pershing Square’s portfolio at the end of 2022.

In March, Pershing Square bought more than 5.65 million Microsoft shares for nearly $2.1 billion and subsequently sold its small position in Alphabet to enhance its Microsoft holdings. Ackman noted that two industry groups—semiconductors and IT hardware—were responsible for 85% of the S&P 500’s year-to-date gains in the first half of 2023.

The firm’s investment strategy emphasizes stocks that are predictable and generate strong cash flows, with solid competitive positions. With the ongoing growth of the AI sector, Ackman’s faith in tech investments continues to prevail.