Billionaire Bill Ackman Says He Buys Only a Handful of Stocks, Targeting Companies Still Valuable in 20 Years

Billionaire hedge fund manager Bill Ackman said his test for a great business is whether an investor could buy it, have markets close for 20 years, and still be confident the asset holds high value a decade or two later. The Pershing Square founder and CEO made the comments in a podcast interview with Norges Bank Investment Management CEO Nicolai Tangen released Wednesday. Ackman said he favors "royalty-like" businesses, such as annuity operations, whose cash flow grows quickly over long periods without requiring reinvestment. His portfolio is concentrated in a few companies, including Amazon (AMZN), Microsoft (MSFT), Meta (META), Brookfield (BN), Uber (UBER), Visa (V) and Mastercard (MA). He also disclosed in August that the fund had reinvested in Netflix (NFLX) after selling out at a roughly $400 million loss in 2022. Netflix fell 10% in October on a disappointing revenue outlook, content-strategy concerns and rising competition. Ackman said only 200 to 300 companies worldwide are truly excellent and do not always trade at prices that make a good investment. He advised investors to seek out the most credible short seller of a stock and try to rebut every argument, and to avoid companies highly sensitive to commodities, interest rates or regulatory change. He said he bought Amazon after Trump's "Liberation Day" tariffs and Meta after its capital-spending disappointment. Pershing Square's U.S.-listed closed-end fund (PSUS) rose 42% over three months but fell 16% in October.