Investment guru Bill Ackman: Sold Alphabet, increased stake in Microsoft, betting on AI infrastructure

Compiled & Edited by: TechFlow

Guest: Bill Ackman, CEO and Founder of Pershing Square Capital Management

Host: Nicole Lapin, Money Rehab

Podcast Source: Money News Network

Original Title: Which Companies Bill Ackman Is Bullish and Bearish on Right Now

Release Date: July 20, 2026

Conflict of Interest Statement: Pershing Square manages approximately $14 billion in assets, concentrated in 11 US stocks, with revenue derived from management fees and performance fees. This conversation covers the broader market and individual stock assessments. Ackman himself does not hold Bitcoin or gold. The interview includes promotional content for PSUS (the publicly traded fund under Pershing Square).

Key Takeaways

Bill Ackman runs one of Wall Street's most concentrated hedge fund portfolios: $14 billion bet on just 11 stocks, with the top five positions accounting for 78% of assets. In this interview, he laid out some specific cards: he just sold out of Alphabet, added $2 billion to Microsoft, betting on the hyperscaler AI infrastructure wave. He didn't make it overly mystical; the core logic boils down to a few words: buy predictable companies and earn compounding returns. His biggest concern for the market isn't valuation, but the possibility of highly leveraged players being forced to exit en masse at some point. Regarding Bitcoin and gold, his exact words were, "I don't know if it's worth $50,000, $70,000, or $5,000 or $1 trillion. But I don't need to know. Investing just requires knowing what you know and what you don't know."

Key Insights Summary

AI Is the Main Story; Everything Else is Noise

• "This is a very special time in history. AI is driving a tremendous amount of entrepreneurship, providing access to intelligence at very low cost to a very broad audience."
• "The biggest companies are competing to build models that lead to superintelligence. They're grabbing land, building data centers, and filling them with GPUs. It's a land grab."
• "I'm less willing to bet on the frontier model companies. Open-source models are getting better and better. People will soon be able to get models that solve most problems at very low cost or for free."

Every Stock in the Portfolio is Carefully Selected

• "There are some companies we've always wanted to buy but were too expensive before. Amazon, Meta, Uber, Microsoft were all on that list. A lot of money is chasing 'the new new thing' – semiconductors, memory – wherever the profits are. We're focused on where we can get high compounding returns over the next three to five years."
• "Uber is very cheap right now because the market thinks Tesla's robotaxis will disrupt it. I think consumers will still open the Uber app to get a ride. They want the cheapest, fastest way to get from A to B."
• "Want to know which giant will win? SpaceX is the only place where you can rent 100,000 GPUs, and the returns are extremely high. My only reservation is the price. At a $6-7 trillion market cap, the imagination room shrinks."

Stays Away from Bitcoin and Gold because They Are Speculation

• "Satoshi Nakamoto is a genius. If I had read the whitepaper when Bitcoin was at 20 cents, I might have bought some. But I don't buy it because it doesn't generate earnings. A business has value because it generates future cash flows. Gold and Bitcoin are only worth what someone else is willing to pay. That's not investing; that's speculating."
• "I have indirect exposure to blockchain companies through some VC funds. I'm technically very interested. But trading all sorts of coins isn't my thing."

The Market's Biggest Fear Isn't High Valuations

• "The market isn't cheap in some places, but looking at the overall PE and saying it's expensive or not isn't very meaningful. The top companies today – Nvidia, Microsoft, Google – are of much higher quality than the top companies 20 years ago. They deserve higher valuation multiples."
• "My biggest worry is that there are too many leveraged players in the market. If some external shock happens, people panic and sell, and those using leverage will be forced to liquidate, triggering a chain reaction. If you don't use leverage, hold good companies, and don't need the money tomorrow, then a big drop is actually an opportunity for you to add positions."
• "Don't borrow money to buy stocks. That's how you get wiped out. Carl Icahn pledged his own stock and used leverage. He went from a $20 billion net worth to $3-4 billion. Rich people can lose a lot of money too."

Don't Do Same-Day Options

• "I don't like this trend of same-day options. That's just gambling. Nobody can predict whether a stock will go up or down in a single day, unless you have inside information. It's a crazy game."

"We're Not Predicting the Future; We Just Notice Things Others Overlook"

Nicole Lapin: Your moves in 2008 made it seem like you could see the future. What did you see?

Bill Ackman: So-called predicting the future is often just carefully studying the present and then finding similar cases in history. In the years before 2008, we saw a bunch of companies doing crazy things: bond insurers, holding AAA ratings as good as government credit, were guaranteeing risky mortgage loans, collecting premiums, and showing profits on their books. This was unsustainable. It wasn't predicting the future; it was seeing a problem in the present and knowing it would eventually blow up.

As for the future, markets will always fluctuate. I don't know the specific trigger, but there's a massive amount of speculation in the market, with both professional and retail investors using significant leverage. If I could give you just one piece of advice: don't borrow money to trade stocks. Also, don't use your living expenses to bet on sports.

How These 11 Stocks Were Selected

Nicole Lapin: Pershing Square only holds 11 to 12 stocks. Why so concentrated?

Bill Ackman: We look for the best businesses in the world, ones that can stand the test of time, ones that at least won't be disrupted by AI, and ideally, ones that benefit from AI.

Our portfolio includes some companies we always wanted to buy but were too expensive until recently. Amazon, Meta, Uber, Microsoft are all on this list. A lot of money is chasing sectors that made money recently, like semiconductors and memory. We focus on assets that can deliver high compound returns over the next three to five years.

Brookfield also perfectly fits this model. It's an asset manager dealing in private equity, real estate, infrastructure, especially power and energy-related businesses. The data center construction boom will require vast amounts of infrastructure, and Brookfield is right in that position. It manages money for others, collecting equity and fees. It's a great business.

Nicole Lapin: You recently bought $2 billion of Microsoft while selling some Alphabet. Have you lost faith in Alphabet?

Bill Ackman: Two things matter to us: business quality and price. We want to buy at a price that offers an attractive return. Sometimes, a stock we own rises to a level where its future returns fall below our threshold, so we sell. Selling Google isn't because we dislike it; Google is still a fantastic company. It's just that its price reached a point where the subsequent return from putting that money into Microsoft looks better.

Microsoft is now around $387 a share. If you want to buy Microsoft at $310, you don't need to wait for it to drop to that price. You can buy PSUS instead. PSUS is a publicly traded fund we manage, currently trading at a 22% discount to its net asset value, and this basket includes Microsoft.

Ackman's Most Bullish and Bearish Views

Nicole Lapin: Let's play a game called "Bullish or Bearish." Gold?

Bill Ackman: No opinion. I don't buy gold, although I bought jewelry for my wife. My dad bought gold many years ago, around the 70s, and held onto it. It's not a great investment. I told him to sell when gold went over $4,000, and he did. I prefer owning businesses that can compound growth.

The problem with gold is that its value is just what someone else is willing to pay, and it gives you no returns. Every asset I invest in generates some form of return: profit, dividends, rent. I only view gold as speculation, not as investing.

Nicole Lapin: What about Bitcoin?

Bill Ackman: I don't buy that either. Very similar to gold. Satoshi Nakamoto is a genius. If I had read the whitepaper when Bitcoin was at 20 cents, I might have bought some. But I don't know if it's worth $50,000, $70,000, or $5,000 or $1 trillion. The beauty of investing is that you don't need to have an opinion on every category; you just need to know what you know and what you don't know. I don't understand Bitcoin, and I don't understand gold, so I touch neither.

I have indirect exposure to blockchain and crypto-focused companies through some VC funds. I'm technically very interested. But trading various coins isn't my thing.

Nicole Lapin: Chipotle?

Bill Ackman: One of our most successful investments. We bought in during its food safety crisis and helped recruit Brian Niccol. He later left for Starbucks, and the subsequent management faced some challenges. I think the company is in a good position long-term, but I have no strong directional opinion on the stock at its current price.

Nicole Lapin: Starbucks?

Bill Ackman: There's a very talented CEO running it. But over a long period, Starbucks pushed prices to quite a high level. I don't think there's much room left for price increases. The customer experience has also been declining, and Brian is trying to bring it back.

Nicole Lapin: Treasury bonds?

Bill Ackman: Treasuries are a place to park cash. But if it were my choice, I'd rather hold high-quality companies long-term over treasuries.

The Risks He Really Worries About

Nicole Lapin: What's the next crisis? Will there be a second 2008?

Bill Ackman: There's always something to worry about. First, the US government spends more than it takes in. We have about $34 trillion in national debt and keep issuing new bonds to cover the deficit. To make matters worse, the AI infrastructure boom means many companies are also issuing debt to raise capital, leading to a surge in demand for credit, while the government itself is issuing even more debt. This much supply needs to be digested by investors, which could lead to rising interest rates.

The second risk is more damaging: there are too many leveraged players in the market. If some external shock comes from the side, people panic and sell. Those who borrowed money will face forced liquidations, and the chain reaction will drag more people into selling. Stock prices could fall a lot.

But if you have a portfolio without leverage, holding a set of high-quality companies, and you don't need the money tomorrow, this is your buying opportunity. If you are carrying margin debt, you will be forced to liquidate at the bottom – the last thing you want.

Buffett's secret is longevity. He designed Berkshire Hathaway so that it would never face a margin call, allowing it to compound continuously. We've had years where we were up 30%, 40%, and years where we were down. We're down a little this year. It doesn't matter. You don't need to make money every year. You need to survive and let good companies compound.

Nicole Lapin: Is the overall market expensive right now?

Bill Ackman: Some parts are expensive. But saying the market PE is 21 now versus the historical average of 17, and therefore it's overvalued, isn't very useful. Market value depends on future earnings, and earnings have been beating expectations, growing faster than most historical periods. Furthermore, the largest companies by market cap today – Nvidia, Microsoft, Google, Meta – are far higher quality and faster-growing than the top companies 20 years ago. They deserve higher valuation multiples.

If Microsoft, Amazon, and Meta are all cheap, it's hard to say the entire market is expensive.

A Roadmap for Young People

Nicole Lapin: If someone has $1,000 to invest right now, what do you suggest they do with it?

Bill Ackman: Find a few companies that don't use much leverage, companies you like, admire, and that always seem to make sound decisions. And you must be convinced: if the stock market were to close tomorrow for ten years, you would still be willing to hold them for those ten years.

Don't invest in whatever seems hottest right now. Invest in what you think can stand the test of time. A company's value is the present value of all its future cash flows over its lifetime. You need to be confident it will live for a long time.

Where to start specifically? As a consumer, you often discover great things earlier than Wall Street. Many of Tesla's earliest shareholders were retail investors; institutions didn't understand how great it was. Look at what products and services in your life you admire. Figure out if they can withstand competition. Amazon – every time I want to buy a book, I go to Amazon. You might have also experienced the pharmacy experience in New York, where everything is locked behind plastic shields, and you need to find a clerk to open them. Amazon delivers in two hours. Who can compete with that?

Nicole Lapin: What do you think of young people trading same-day options every day?

Bill Ackman: It's just gambling. No one knows whether a stock will go up or down in a single day. Unless you have inside information.

Nicole Lapin: What is the formula for success?

Bill Ackman: It’s all basic stuff: show up on time, do a little more than what is asked, do what you say