At the Milken Conference, Pershing Square’s Bill Ackman sat down with Yahoo Finance to discuss what he calls a “very significant change in strategic direction”: a $900 million investment in Howard Hughes Corporation. But this wasn’t just another deal—it’s the culmination of a long-term vision that draws clear inspiration from Warren Buffett himself.
“The story begins,” Ackman said, “when I began my career… Warren Buffett, Berkshire Hathaway letters—the beginnings of my investment education.” He continued, “The story of Berkshire Hathaway… buying control of a textile business and then transforming it over time into a diversified holding company… that was an inspiration.”
Ackman sees Howard Hughes as his version of that long play. “The ultimate investment dream is to have a public company where you could build with permanent capital,” he explained. “That’s what Warren has achieved, and that’s what we hope to achieve with Howard Hughes.”
So what’s changing? Pershing’s management company—owned by Ackman and his partners—is now investing directly in Howard Hughes. Ackman is returning as Executive Chairman. “We’re going to build a company,” he stated plainly. And he’s not rushing into massive acquisitions. “We’re going to start not with elephants, not rabbits, but small animals.”
Ackman’s investment philosophy remains focused on quality. “We’re looking for businesses that have great durable economic characteristics,” he said. “You want a company that can withstand tariffs, pandemics, volatile interest rates… super durable growth companies.”
While comparisons to Buffett are inevitable, Ackman is clear-eyed about the differences: “He’s got more experience than I do… I aspire to have his longevity and his mental acuity.” Yet he acknowledges shared DNA: “Warren loves the same kind of businesses as we do… high returns on capital… non-disruptible… very similar principles about capital allocation and incentives.”
He also reflected on Buffett’s legacy. “You’re in a room with 44,000 people… many of whom Warren has completely transformed their lives.” When Buffett hinted at passing the torch, Ackman called it an “emotional moment… almost tears in his eyes.”
So is this a new Berkshire in the making? Ackman won’t go that far. “Warren’s an icon,” he said. “He deserves his own place in history.” But with a billion in cash and a fresh mandate, Ackman’s bet on Howard Hughes suggests he’s building something meant to last.
“I still go to Mecca,” Ackman said, referring to the Berkshire meetings, “because I want to make sure my investment values stay the same.” Now, he’s putting those values into action—one small animal at a time.
You can watch the entire interview here:
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