413 Bill Ackman

Bill Ackman

American hedge fund manager

William Albert Ackman is an American billionaire hedge fund manager who is the founder and chief executive officer of Pershing Square Capital Management, a hedge fund management company. His investment approach has made him an activist investor.

Source: Wikipedia

  • Born: 1966 , New York
  • Net worth: 9 billion USD (2024)
  • Spouse: Neri Oxman (m. 2019) and Karen Ann Herskovitz (m. 1994–2017)
  • Education: Harvard Business School (1992), Harvard College (1988), and Harvard University
  • Children: 4
  • Parents: Lawrence D. Ackman and Ronnie I. Ackman

The Main Arguments

  • Value vs. Price: Ackman emphasizes the distinction between price (market value) and value (intrinsic worth), a principle rooted in Benjamin Graham's teachings. This understanding is crucial for investors to avoid speculative decisions and focus on long-term potential, especially during market volatility.

  • Long-term Investing: Ackman advocates for a long-term investment strategy, asserting that the stock market ultimately reflects a company's true value over time. He warns against the dangers of short-term volatility, which can lead to panic selling, and encourages investors to remain patient and committed to their long-term goals.

  • Psychological Resilience: Ackman discusses the psychological aspects of investing, stressing the importance of emotional control and rational decision-making. He advises investors to only invest money they can afford to lose, which helps mitigate emotional reactions during market downturns.

  • Activist Investing: Ackman shares insights into his role as an activist investor, where he seeks to influence company management and strategy to unlock value. He argues that activism can restore the balance of power between shareholders and management, which is essential for effective corporate governance.

  • Management Quality: Ackman underscores the significance of strong management in a company's success. He believes that effective leadership is a key driver of growth and resilience, making it essential for investors to evaluate management quality when selecting companies to invest in.

  • Technological Disruption: The discussion touches on the disruptive potential of AI and technology across various industries. Ackman acknowledges that while AI poses risks, it also presents opportunities for companies that can adapt, highlighting the need for investors to stay aware of technological advancements.

  • Governance Issues in Higher Education: Ackman critiques the governance structure of universities, particularly Harvard, arguing that it is self-perpetuating and lacks accountability. He discusses the implications of this governance failure on leadership and decision-making, particularly in the context of recent controversies surrounding free speech and academic integrity.

  • Defamation and Media Accountability: Ackman passionately defends Neri Oxman against allegations of academic fraud made by Business Insider, arguing that the media's rush to publish sensational stories can have devastating consequences. He highlights the need for accountability in journalism and the importance of protecting individuals from unfounded accusations.

Notable Quotes

  • "Price is what you pay, value is what you get."

  • This quote encapsulates Ackman's investment philosophy, emphasizing the need to understand true value.

  • "Never invest money you can't afford to lose."

  • A reminder of the importance of financial security in maintaining a rational investment approach.

  • "In the long term, the stock market's a weighing machine."

  • Ackman reiterates that short-term fluctuations are less important than long-term value.

  • "Harvard has become a place where free speech is not tolerated on campus."

  • This statement reflects Ackman's concerns about the current state of free speech in academic institutions.

  • "This is a super dangerous ideology."

  • Ackman expresses his concerns about the DEI (Diversity, Equity, Inclusion) framework and its implications for academic discourse.

  • "The governance structure is a disaster."

  • A strong critique of Harvard's governance, highlighting the need for reform to ensure accountability and effective leadership.

  • "You can kill someone by destroying their reputation."

  • Ackman emphasizes the severe psychological impact of defamation, particularly in the context of Neri Oxman's situation.

Relevant Topics or Themes

  • Investment Philosophy: The episode delves into Ackman's investment philosophy, particularly value investing and the importance of understanding the difference between price and value. This theme connects to broader discussions about market behavior and investor psychology.

  • Corporate Governance: Ackman discusses the role of management quality and shareholder activism in corporate governance. This theme is relevant in the context of increasing scrutiny on corporate practices and the demand for accountability.

  • Technological Disruption: The conversation explores the impact of AI and technology on various industries. This theme is significant as it reflects the ongoing transformation in the business landscape and the need for investors to adapt.

  • Psychological Resilience: Ackman emphasizes the psychological aspects of investing, highlighting the importance of emotional control and rational decision-making. This theme resonates with the challenges faced by many investors during market volatility.

  • Free Speech and Academic Integrity: The episode addresses the tension between free speech and the governance of universities, particularly in light of recent controversies. Ackman critiques the handling of free speech issues at Harvard and the implications for academic integrity.

  • Diversity, Equity, and Inclusion (DEI): Ackman discusses the DEI framework and its influence on university culture and governance. He expresses concerns about its implications for free speech and academic discourse, suggesting that it may limit diverse viewpoints.

  • Media Accountability: Ackman’s defense of Neri Oxman against defamation highlights the broader issue of media responsibility and the impact of sensationalist journalism. He argues for the need to hold media outlets accountable for their reporting.

  • Political Landscape and Leadership: The discussion touches on the current political climate, with Ackman expressing concerns about leadership in the U.S. He discusses the importance of having capable leaders who can navigate complex issues, both domestically and internationally.