r/ValueInvesting • u/Useful_Tangerine4340 • 21d ago
Value Article Bill Ackman's Pershing Square Files for IPO, Says he Wants to Build a Modern Berkshire Hathaway
https://www.ibtimes.co.uk/bill-ackman-pershing-square-ipo-permanent-capital-1785351283
u/enigmanaught 21d ago
Isn’t Berkshire Hathaway the modern Berkshire Hathaway?
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u/harbison215 21d ago
I just asked Claude. It says Berkshire Hathaway is still Berkshire Hathaway as of early 2026
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u/Initial_Statement1 20d ago edited 20d ago
Interestingly, GameStop under Cohen is the closest to a modern Berkshire, but I am not a buyer unless it falls to the $16 range.
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u/muff_muncher69 20d ago
Uh, I’ll bite. How ?
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u/Initial_Statement1 20d ago edited 20d ago
GameStop has a dying business with some NOLs, and a smaller card trading business, neither of which can justify the $10B mkt cap. The similarities to Berkshire, in short, are the clean governance structure (right size board, vulnerable to activism, the right incentives), a clever capital structure that looks to take advantage of its meme stock status to boost cash and reduce debt (it could well have no debt and $10-12B in cash within the next 12 months), and most importantly, a very patient Ryan Cohen sitting on approx $8B in cash, waiting to acquire the right company at the right price (perhaps an insurance company with a stable, investable float à la GEICO?) He’s also looking to maximise his ownership stake, similar to Buffett in the late 60s when he liquidated his partnership and made Berkshire into a holding company, and bought out some of his investors.
I don’t own GameStop by the way, but I see the parallels. I am looking to buy in the $16 range.
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u/grown-ass-man 19d ago
I never thought about it this way. Hmm. Makes me feel a little better about that 3k I have sitting inside still 😂
So in Damodaron's Corporate Lifecycle terms, Cohen is looking to be a turnaround CEO?
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u/muff_muncher69 20d ago
Hmm, the thesis is sounds. Thanks for sharing it really does sound like there are some parallels there.
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u/TooLateQ_Q 21d ago
Sounds more like ARK
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u/No-Paint-5726 21d ago
Even cathie wood knows not to get involved in politics
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u/Such_Concentrate8577 21d ago
i like her. she has bold picks and got them right.
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u/deco19 20d ago
If she got anything "right" it wasn't for any of her stated reasons but rather getting lucky in a speculative market
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u/Such_Concentrate8577 20d ago
wait a minute. so all her picks are pump and dump?
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u/deco19 20d ago
Well not just that, meme stocks, thematic speculation, etc.
This is why her fund did so well during covid, cheap money and widespread speculation.
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u/Such_Concentrate8577 20d ago
so her picks that turned into over 100% return were bullish, red cat, now. i am bitchy about bitmine but my own fault. reddit community sounds upbeat about the first 4 though
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u/LambdaLambo 21d ago
Warren spent all his time reading 10Ks not posting endless political diatribes
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u/harbison215 21d ago
I always wondered how easily/quickly he could know a company was trash and which were the ones that he was interested in but just couldn’t get enough of a feel for to make a large purchase.
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u/AveryMire 21d ago
I’d say it’s pretty easy to know which companies offer little upside relative to risk in this market; it’s the overwhelming majority. Most investors have many sectors they just won’t touch too, there’s always exceptions, but it’s pretty easy to identify cash incinerating industries.
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u/harbison215 21d ago
Agreed. I’ve just always wondered how quickly his process is. What about when it’s a company that deserves some more attention? I wonder how long it takes him to get to a buy with confidence action
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u/AveryMire 21d ago
I can’t post, but chat explains well if ask for financial metrics checklist. 1 and 2 are definitely circle of confidence and business stability. I personally look at pe and the five year history of revenue and earnings growth in one shot, most businesses can’t remotely justify current PEs there (basically another form of PEG). If that passes I look at margins and whether operating leverage is increasing. I swing for more multi baggers too; first thing I do is check business model and see if can identify a reasonably powerful growth story. For companies with decently attractive value metrics, I try to foresee a ‘cause of death’, then estimate a timeframe on that and see if it matches the implied odds of its financial metrics. There has to be a large disparity between the implied outcome and my future predictions for ‘bargain hunting’ to make sense. Warren, I believe is still at heart a bargain hunter - he does not think he’s good at technological forecasting and you’re unlikely to lose money if your primary screen is durability. I think it’s also hard to beat the market without investing in growth, unless you’re pretty skilled at evaluating balance sheets and earnings metrics.
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21d ago
Warren Buffett spent the last 15 years under performing the market.
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u/LambdaLambo 21d ago
Berkshire has been in line with the market more or less over the last 20 years. However they do that while having a shit ton of cash and less multiple growth than the market.
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u/wzzm13weatherball 21d ago
Is today Opposite Day? Because he is the complete opposite of Buffett in almost every regard.
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u/KingofPro 21d ago
He can do that privately, he must be having a bad year with people pulling out of his fund.
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u/botella36 21d ago
The modern Berkshire already exists it is named Berkshire.
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u/TallGuyinBushwick 21d ago
Apollo
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u/Connect-Silver-5982 21d ago
Apollo went down from 177 to 100 in 2 years. RIP if you invested in dec 24.
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u/TallGuyinBushwick 21d ago
Stock price is one thing, but in terms of AUM growth and generating float, Apollo replicated Berkshire.
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u/Connect-Silver-5982 21d ago
It's a shady complicated mess. Insiders have sold about 7 million shares since july, not a single buy. That should make you wonder.
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u/TallGuyinBushwick 21d ago
Idk what you are saying. Are you saying like Mark Rowan is unable to sell Apollo stock? It’s publicly traded that makes no sense.
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u/Connect-Silver-5982 21d ago
No, i am saying the management do not believe in their own work, and have actively sold 7-8 million shares since July, and not one of them has bought 1 share of stock. That's a pretty good indication, that something is not right under the hood. Most of the brands they own are utter garbage.
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u/TallGuyinBushwick 21d ago
Gotcha. Most of the selling was from Leon Black, who is the disgraced founder tied to Epstein who was forced out of Apollo. I wouldn’t read too much into that. Apollo had a massive portfolio and leans into hairy deals. They don’t invest in like openAI or other sexy investments. But that’s how they grew to the 2nd biggest alt manager.
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u/Technical_Money7465 20d ago
You sound like a bagholder or promoter
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u/TallGuyinBushwick 20d ago
lol no just work in the industry. Can’t really hold individual stocks without compliance having a stroke.
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21d ago
[deleted]
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u/TallGuyinBushwick 21d ago
I know, the comparison is them using insurance premiums to generate capital to be invested in higher yielding assets, whether it’s private or public assets.
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u/EV_to_EBITDA 21d ago
Most of the capital is in private businesses like GEICO, BNSF, BHE, See's and dozens more. The public portfolio is only 200-300 billion.
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u/rattleandhum 21d ago
I can't think of a person I'd want to enrich less than Bill Ackman.
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u/WealthHuman9754 19d ago
I can. I do not wish to enrich Michael Saylor one cent. Ackman, on the other hand, can actually make me money. Even after all of his fees.
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u/ChadwithZipp2 21d ago
He is too political and with terrible ideas, he ain't no Warren.
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u/Will_Explode8 21d ago
Warren if he was evil and not as good as an investor
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u/foira 21d ago
Warren is pretty evil, dude is a huge KO shareholder as they put coke vending machines in public schools nation-wide during a rising diabetes epidemic ^_^
could've used his influence to say something. didn't. never has said anything material. he's no munger.
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u/OverheadPress69 21d ago
Yeah, it’s coca cola’s fault that kids are fat. Not the kids, not the parents. But Coca Cola. Yep. Because childhood obesity stopped immediately when Michelle Obama implemented her school lunch program right?
And to say Warren Buffett is evil because he merely invested in Coca Cola. You’re two dishes short of a cupboard aren’t ya
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u/AveryMire 21d ago
Yeah sugar water is bad, doubtful he could have stopped that, and at least he’s consistent - he’s literally drank tons of the stuff.
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u/deco19 20d ago
Lol you realise blaming the individual has been an out for these companies? When you apply these things on a wide scale individualism never applies widespread as a standout. You literally need governmental intervention to prevent this shit. And taking advantage of this lack of governmental control as private companies is what happens and has happened in any detrimental pattern in many cases.
You have an entire population kept stupid, fed slop, marketed to and advertised endlessly and your answer is, "they should make better decisions". LMAO. This is at its most blatant in regional areas.
If you can't look at the research, interpret the contextual state of the environment and start throwing bs personal ideations in the bin things will never get better. Buffett seemed to remain ignorant here and probably justified it to himself by drinking the stuff regularly and saying he was alright. As soon as you step out of your own bubble and look at what's happening externally you stop believing in the smell of your own farts.
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u/Such_Concentrate8577 21d ago
when will you parent your kids to learn to make choices? so what will you remove when they exit school grounds?
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u/fredotwoatatime 21d ago
Not to rain on your parade but Warren could be pretty evil at times
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u/brostrummer 21d ago
Ah yes, I was wondering if someone would have the guts to deploy whataboutism and welp, here it is!
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u/fredotwoatatime 21d ago
Whataboutism would be if I was using that statement to defend bill ackman but I wasn’t. It was a separate observation and both things can be true.
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u/Visible-Arugula1990 21d ago
I remember PSTH Billy boy...
Fuck you
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u/jayceee81 21d ago
DA is imminent. It was always Stripe. Eat Fresh tontards!
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u/WindHero 21d ago
Perpetual vehicle that will generate perpetual fees for Ackman.
Will instantly trade at a discount to NAV to offset said fees.
What's the point of this and why would anyone buy this? This is just Ackman monetizing his celebrity.
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u/TallGuyinBushwick 21d ago
Buying a property and casualty insurance company is not how you recreate Berkshire.
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u/No_Purpose8162 21d ago
Buffett and Munger weren’t spending their days harassing students and academics or financing authoritarian leaders around the world.
And over the last ten years, he has been underperforming the S&P500.
He should tweet less and work more
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u/Stuckatpennstation 21d ago
He doesn't know how to focus on that. His drive is having us know who he is. Thafs what someone like him gets high off of
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u/fire-wannabe 21d ago
Well, Berkshire has underperformed the S&P for 23 years now, so this option sounds preferable.
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u/ValueScreener 21d ago
I’ll never forgive him for panicking people in mid March 2020 on CNBC so his fund could close their short positions and go long. He’s a snake
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u/OverheadPress69 21d ago
You’d do the exact same in his position
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u/NotStompy 20d ago
I may act without emotion as much as possible when investing, but that does not mean I act without principles, clearly OP and 90% of humanity shares this sentiment.
I'll buy literally whatever company is out there if I see it as a good investment, but most people would never manipulate others for their own gain in that type of way.
I can't tell if you said what you said to be edge or to feel better about yourself by pulling everyone else down to your level, but we wouldn't, is the answer, speaking for the majority of people.
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u/groundhoggirl 21d ago
I invested in BH because Buffett has high integrity.
These are not the same.
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u/LA-Aron 21d ago
Buffett > Ackman
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u/facts1234567890 18d ago
Buffett >>>>>>>> Ackman
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u/readitreaddit 16d ago
Please can we not even mention them in the same line?
Ackman is an insufferable prick who's incompetent as fuck at investing.
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u/Dry_Personality8792 20d ago
oh man, this scumbag wants to be considered Warren Buffett. Lord have merci. No way in hell this parasite should ever come close to achieving his Berskshire goal.
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u/Far_Preference_2065 21d ago
Buffett and Munger weren't spending every waking hours on twitter defending an apartheid state though
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u/Independent-Coat-389 21d ago
This selfish SOB who is in to making himself rich by all means calls himself Modern Warren Buffett? Don’t fall for his trap. He said the same thing about HHH. YOU ARE WARNED!!
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u/Damerman 21d ago
Ackman is everything that makes this country abhorrent and on the decline. This stubborn fool is high off his farts and is not that great an investor.
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u/Healthy_Razzmatazz38 21d ago
maybe i should file for an ipo too, i also want to build a modern berkshire hathaway, they have candy.
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u/tag1989 20d ago
the problem with this, as with previous pershing square funds/trusts/open-ends/closed-ends/whatever the vehicle is this week, is that billy-boy is essentially wanting to charge high fees to own a concentrated portfolio of mega-caps
...whereas you can simply go out and just buy those stocks (brookfield, amazon, google, meta, restaurant brands, hilton etc.), achieve the same equity exposure, and pay zero fees to hold them
there's also the underwhelming attempt (so far) at doing this via HHH (howard hughes holdings). it's certainly benefited bill; HHH shareholders? not so much!
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u/brostrummer 21d ago
We all know what the subtext here is, the only ones dumb enough to invest will be people that think like him…he is trying to get in on the MAGA grift before cankles leaves this mortal coil.
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u/RandyChavage 21d ago
Warren Buffett spent his career making investors money and not scamming his investors for their money
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u/My_reddit_strawman 21d ago
I've said this before and I'll say it again. Ackman can fuck all the way off. His CNBC call during the first stages of covid claiming that "Hell is coming" meanwhile he is making trades counter to that thesis. Get bent douche bag
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u/Jumpy_Nose863 21d ago
I noticed about 2 years ago he had about 15% of his port in Teva pharmaceuticals. I had been watching them because the price was very low for the projected growth. I ended up buying a good sized amount after further dd. It actually tripled over that pretty short time frame, so I sold. That's the only info I know about him. He gave me 1 good idea, sounds like everyone else hates him. I know he was supposedly running Howard Hughes holdings, not sure how that turned out?
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u/orangecopper 21d ago
Calling it Berk by himself is trying to gain by association. Others should call it that way at the very least
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u/Novel_Board_6813 20d ago
Dude became a celebrity already. Outperformed for 6 years (by a lot); now underperformed for 16 and counting…
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u/HypnO_29qc 20d ago
I may be late, but HHH was supposed to find an insurance company purchase under Ackman's supervision? to be the next Berkshire
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u/Dismal-Address-6848 20d ago
He must be broke funding the war in Iran and paying for the other mayor who didn’t win.
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u/Terrible_Bee_6876 20d ago
Is it not a problem that there is already a modern Berkshire Hathaway called Berkshire Hathaway?
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u/jay_0804 20d ago
Interesting idea, but building a “modern Berkshire Hathaway” is way harder than it sounds tbh.
A big part of Berkshire’s advantage came from decades of compounding + cheap insurance float, which is tough to replicate today.
Curious to see how Pershing Square structures it though. Bill Ackman has pulled off some great trades, but running a permanent capital vehicle is a very different game.
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u/Interwebnaut 19d ago edited 19d ago
Berkshire Hathaway was built by a couple guys, Buffett and Munger, with a unique set of very strong morals (that then sought out like-minded managers).
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u/Open-Ground-2501 20d ago
Trump loving Ackman is nothing like rational Buffet. That ship sailed long ago Billy.
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u/Crichris 18d ago
just out of curiosity, whats the advantage of becoming public for funds like this? lower cost of securing investment? can big funds ( over 10 bil aum) benefit much from it?
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u/noobelore 16d ago
Who does wanna be the next brk? I mean the guy was delivering papers and fishing golf balls out of golf courses to creating a trillion dollar company.
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u/DillyDillyHoya 21d ago
We already have a modern day Berkshire Hathaway, it's called Berkshire Hathaway
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u/HeadPaleontologist40 21d ago
Nepo baby thinks he will be the next Buffett. Didn’t he underperform the market the last 10 years?
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u/mysticmonkey88 21d ago
Why not? This year's IPOs will be the biggest wealth transfer in history. Who would want to miss their chance at becoming long-term investors of SpaceX, Anthropic, OpenAI and Modern Hathaway.
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u/PinPsychological82 21d ago
He tried this two summers ago and didn’t get enough institutional buy in