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Bill Ackman

What Bill Ackman thinks about value investing

@bill-ackman · 22 positions · On ppll ↗

Founder and chief executive of Pershing Square Capital Management, the activist investment firm he started in 2004.

Bill Ackman did not write this page.

We collected these quotes from things they published elsewhere, and every quote links to where it was said. They have no account here and have not endorsed this site. Quotes are word for word; the short line under each one is our own restatement, not their wording. Their own site. Is this you? Claim it or ask us to remove it. Or tell us what is wrong here.

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Only Bill Ackman on value investing. See everyone on value investing

7 dated positions, 2024, in their own words. Our reading of what Bill Ackman has said — not written or endorsed by them.

  1. Our readingThe value of anything is the present value of the cash you can take out of it over its life.

    Their wordsThe value of anything, I would say, other than love, let's say, is the present value of the cash you can take out of it over its life.

    ↗Bill Ackman: Investing, Financial Battles, Harvard, DEI, X & Free Speech | Lex Fridman Podcast #413youtube.com 1st of 22 in this recording

  3. Our readingMost investments are really speculations, because only a handful of businesses can be predicted with any confidence.

    Their wordsAnd very few businesses that you can have a really high degree of certainty about. And as a result, many investments are speculations because it's really very difficult to predict the future.

    ↗Bill Ackman: Investing, Financial Battles, Harvard, DEI, X & Free Speech | Lex Fridman Podcast #413youtube.com 2nd of 22 in this recording

  5. Our readingA margin of safety means paying a discount deep enough that being wrong about what a company is worth still leaves you whole.

    investing

    Their wordsYou want to buy a company at a price that if you're wrong about what you think it's worth and it turns out to be worth 30% less, you paid a deep enough discount to your estimate that you're still okay. A big part of investing is not losing money.

    ↗Bill Ackman: Investing, Financial Battles, Harvard, DEI, X & Free Speech | Lex Fridman Podcast #413youtube.com 3rd of 22 in this recording

  7. Our readingBuying the best business in the world at too high a price still produces poor returns.

    Their wordsPrice matters a lot. You can buy the best business in the world and if you overpay, you're not going to earn particularly attractive returns.

    ↗Bill Ackman: Investing, Financial Battles, Harvard, DEI, X & Free Speech | Lex Fridman Podcast #413youtube.com 4th of 22 in this recording

  9. Our readingTechnology companies are the wrong place to look for durable businesses, because someone is always building a better version.

    Their wordsAnd that's why we have tended to stay away from companies that are technology companies because technology companies generally... The world is such a dynamic place that someone's always working on a better version.

    ↗Bill Ackman: Investing, Financial Battles, Harvard, DEI, X & Free Speech | Lex Fridman Podcast #413youtube.com 6th of 22 in this recording

  11. Our readingIncentives drive all human behaviour, which makes a management team's incentives central to valuing a company.

    investing

    Their wordsSo as I like to say, incentives drive all human behavior and that certainly applies in the business world. So understanding the people and what drives them, and what the actual financial and other incentives of a business, are very important part of the analysis for investing in a company.

    ↗Bill Ackman: Investing, Financial Battles, Harvard, DEI, X & Free Speech | Lex Fridman Podcast #413youtube.com 7th of 22 in this recording

  13. Our readingAn investor who never borrows against their securities can afford to think, because no fall in price can force them to sell.

    investing

    Their wordsSo as long as you don't borrow against securities, you own really high quality businesses and it's not money that you need in the short term, then you can actually be thoughtful about it.

    ↗Bill Ackman: Investing, Financial Battles, Harvard, DEI, X & Free Speech | Lex Fridman Podcast #413youtube.com 9th of 22 in this recording