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This company has a long track record of earnings growth and stock performance.
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The AI boom represents a fresh growth opportunity for this tech player.
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Bill Ackman has made many brilliant investing moves over time, including getting in on Chipotle Mexican Grill before revenue and the stock price took off. The founder and chief executive officer of Pershing Square Capital Management has seen that holding soar more than 300% since his purchase through today.
The billionaire is known for his investments in consumer-related stocks and aims to accompany his favorites over the long term. This, along with Ackman’s activist investor moves and willingness to buck the trend, have helped him become one of the world’s most successful hedge fund managers. And this has pushed Pershing Square Holdings, managed by Pershing Square Capital Management, to outperform the S&P 500 this year — and double Ackman’s wealth to more than $9 billion, according to Forbes.
So it’s no surprise that investors are interested in learning about Ackman’s latest moves — and potentially following some of them. In the second quarter, the billionaire added a new position to his portfolio at Pershing Square Capital Management. This consumer and tech company has seen its stock climb more than 700% over the past decade, and importantly, it’s already scored a $123 billion win in the high-growth market of artificial intelligence (AI). Let’s check out this latest Ackman purchase.
At Pershing Square Capital Management, the billionaire oversees more than $13 billion in 13F securities — these are positions and/or moves that must be reported on a quarterly basis to the Securities and Exchange Commission. Managers of more than $100 million in U.S. equities must file this form four times a year.
In the quarter, Ackman didn’t make many moves. His primary ones were selling his position in railway Canadian Pacific Kansas City Limited and increasing his holding of Alphabet class A shares by about 20%. And his biggest was the purchase of the following stock market giant:
Ackman opened a new position in Amazon (NASDAQ: AMZN), buying 5,823,316 shares of the company. This represents about 9% of his portfolio and places Amazon within his top five holdings.
The move offers Ackman a bet on e-commerce, since Amazon is a leader in this area, and a significant investment in AI. Amazon uses AI to improve its e-commerce business, from fulfillment center operations to delivery, and this helps the company lower its costs. Amazon hasn’t stopped there, though. The company’s biggest AI success story may be in its Amazon Web Services (AWS) unit.
