Can Bill Ackman Make Howard Hughes Holdings Into the Next Berkshire Hathaway?

Bill Ackman's investment strategy and recent moves highlight a focus on transformative potential in core holdings, particularly with Howard Hughes Holdings (HHH) and Amazon.com Inc. (AMZN). Ackman's approach emphasizes deep research, long-term focus, and activist engagement to drive corporate value. Here's a detailed analysis: 1. **Ackman's Portfolio Shifts**: - **Amazon.com Inc. (AMZN)**: Ackman’s significant 9.31% stake in Amazon, valued at $1.28 billion, showcases his bet on the company's AI/cloud growth and intrinsic value. Amazon's Q2 2025 revenue of $167.7 billion, driven by 17.5% AWS growth, supports Ackman's thesis. - **Howard Hughes Holdings Inc. (HHH)**: Ackman has transformed HHH's real estate focus into a diversified model, acquiring a 46.9% stake and 40% voting power. This aligns with Berkshire Hathaway's structure, aiming for stable cash flow and conservative underwriting. 2. **Ackman's Investment Philosophy**: - **Concentration and Long-Term View**: Ackman favors 8-12 core positions, holding AMZN and HHH after years of research. His Q2 2025 13F reveals a portfolio focused on growth and value creation. - **Active Engagement**: Ackman takes an activist role, pushing for management changes and cost-cutting at HHH. At Pershing Square, he demands operational efficiency and innovation. 3. **Recent Challenges and Controversies**: - **Food Stamp Program Critique**: Ackman criticized the SNAP food stamp program for subsidizing unhealthy foods, echoing concerns about public policy and health outcomes. - **Trump Administration Support**: Ackman expressed support for President Trump's policies, including the firing of Federal Reserve Board member Lisa Cook, arguing for her resignation due to mortgage fraud allegations. 4. **Lessons for Investors**: - **Focus on Corporate Transformation**: Ackman's success with HHH and AMZN suggests that investors should look for companies with strong fundamentals but operational challenges, where active ownership can drive lasting value. - **Diversification and Risk Management**: Ackman's concentrated portfolio and risk management strategies provide a framework for balancing growth and stability. In conclusion, Ackman's strategy centers on identifying undervalued companies with transformative potential, exemplified by his investments in AMZN and HHH. His active engagement and long-term focus aim to reshape these companies into more efficient, diversified entities, mirroring his admiration for Berkshire Hathaway's model.