Billionaire investor Bill Ackman is making a big move, mirroring the strategy of legendary investor Warren Buffett. His hedge fund, Pershing Square, just dropped nearly a billion dollars on a real estate company.
A Major Investment in Howard Hughes
Ackman’s firm purchased 9 million shares of Howard Hughes Holdings (HHH) for a whopping $900 million. That’s a 48% premium over the stock’s closing price the previous Friday. This gives Pershing Square a significant stake – 46.9% – in the company. Ackman has also become the executive chairman of HHH’s board.
Building a Holding Company
Ackman’s plan is to transform HHH. He envisions it evolving from a real estate developer into a diversified holding company, acquiring other businesses that fit Pershing Square’s investment criteria. He believes HHH’s current value is underestimated by the market.
Inspired by Buffett
Ackman openly stated his inspiration for this strategy: Warren Buffett and Berkshire Hathaway. He sees this as a chance to build a publicly traded company with long-term, stable capital, similar to Buffett’s success in transforming a textile company into a diversified powerhouse. Ackman calls this his “ultimate investment dream.” He hopes to replicate Buffett’s success with Howard Hughes Holdings.
