Bill Ackman’s Pershing Square Is Betting Big On This Big-Name Stock

The activist investor whose firm has returned nearly 50% so far in 2019 just bought $685 million worth of this stock.

Billionaire’s Secret Strategy Beats Passive Investing By 5,500%

This strategy survived the ‘87 crash, the dotcom bust and the subprime panic—and turned $1K into $66.7 million…compared to $1.2 million buying and holding the S&P 500. This year will bring new trends...laws…tariffs…increased volatility…maybe even a market crash. To use this strategy to protect, revive, and multiply your retirement savings by leaps and bounds - even in a bad economy - click here. [ad]

Read More


Hedge funds delivered their 13F filings today, disclosing their investments in the second quarter. 

And one filing revealed a new stake in Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A, BRK.B).

Bill Ackman’s Pershing Square bought 3.51 million Class B shares in Berkshire as of June 30, worth about $685 million as of Wednesday’s close, according to the firm’s filing. This is the first new position in Ackman’s fund since it bought Starbucks (NASDAQ: SBUX) in 2018.

The activist investor’s position in Berkshire isn’t expected to be an active one, according to a person familiar with the matter.

Ackman’s fund is on track for a record year, with the net asset value of his publicly traded vehicle—Pershing Square Holdings (OTC: PSHZF)—has risen 48.9% through August 13. 

So far this year, the fund has far outperformed the broader market with the S&P 500 up just 13% in the same timeframe.

Pershing Square has crushed the market thanks in part to a handful of stocks, including Chipotle Mexican Grill (NYSE: CMG), Howard Hughes Corp (NYSE: HHC), and Starbucks, which are up 84.48%, 31.44%, and 47.39%, respectively, so far this year.

Berkshire Hathaway Class B shares have fallen -4% year-to-date, and Buffett hasn’t been finding much value in stocks recently which has led to a record cash pile of $122 billion. Berkshire sold $1 billion more in stocks than it bought last quarter, marking its biggest net selling in nearly two years.

Buffett’s Berkshire spent last quarter cutting its bet on Charter Communications (NASDAQ: CHTR), trimming its position by 5%. The company also boosted its stake in Amazon (NASDAQ: AMZN) by 11%, though the $1 billion holding is far outweighed by Berkshire’s roughly $49 billion bet on Apple (NASDAQ: AAPL). 

The Oracle of Omaha hasn’t made a major acquisition in several years, though there has been constant speculation about what type of business he might buy next. Buffett also pulled back on repurchases of Berkshire’s stock in the second quarter, according to its filing.

Ackman said earlier this month that he had sold his stake in both United Technologies (NYSE: UTX) and Automatic Data Processing (NASDAQ: ADP), and has built a new position in an undisclosed company. 

While he opposed United Technologies’ takeover of Raytheon (NYSE: RTN), Ackman chose to exit his position rather than fight the acquisition. With ADP, Ackman sold after a 50% return as the easy work to improve the payroll company’s operations had been completed. 

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Company’s software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.