Bill Ackman’s Pershing Square Holdings began trading in Amsterdam today.
Ackman, the CEO of Pershing Square Capital Management, compared his investment strategy to Warren Buffett’s Berkshire Hathaway.
“We do not even called them trades. No, I mean, they’re investments,” Ackman told Bloomberg News Hans Nichols in an interview this morning.
“Pershing Square Holdings, we think of it like an investment holding company. We are not Berkshire Hathaway, but I think that’s not a bad business model. You think about a long duration investment strategy. We will only invest in the public markets but we will buy large stakes in public companies like we did in the past. This will enable us to have a capital base that matches the duration of our investments.”
Ackman uses an activist investing strategy where he takes large stakes in companies and advocates for change from management in an effort to unlock shareholder value. He sees himself more as a Buffett than an Icahn, though.
“I think — I think that’s a better choice. I mean, I’m friendly with Mr. Icahn and he’s done a fabulous job but in terms of investment strategy, we’re much more like Berkshire Hathaway than Icahn.”
That’s not really a swipe at Icahn, though. Ackman and Icahn were rivals for many years. They engaged in a nasty public fight live on CNBC with Icahn hurling insults at Ackman. They made up this summer and hugged it out on stage at a conference.
It’s well-known that Ackman has been a fan of Buffett for years. He’s compared his investment strategy to the “Oracle of Omaha” before. He has also recommended that people in the hedge fund space read all of Buffett’s shareholder letters. He also has his analysts at Pershing Square read books on Buffett.
Ackman said that he plans to use that capital to take a stake in a U.S. publicly traded company. He said that investment will be unveiled in the next 45 to 60 days.
Watch the Bloomberg TV clip below:
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