Hedge fund manager Bill Ackman shot Warren Buffett's investment strategy.
Buffett, 94, is considered one of the most successful investors in the world, earning the nickname “Oracle of Omaha.”
However, Ackman, who runs Pershing Square Capital Management, Recent podcast look That Buffett's investment strategy has become too cautious.
He believes that Buffett's planned successor, Greg Abel, will do a better job running the holding company's business.
“Now you'll have more operators responsible for Berkshire. I think there's a lot of value that can be created in Berkshire with a better business,” he told “According to Boyars, the World” on Thursday.
Ackman used the Burlington Northern Railway, owned by Berkshire, as an example.
It may be the biggest railway, but Ackman argued, “probably the least efficient of all railways years ago.”
As Abel takes the helm in Berkshire, he will likely use a practical approach to improve the company's business, Ackman said.
“I think the next generation of leadership is a little more disciplined about ensuring that the right people run the company,” he added.
Ackman, a former Berkshire investor, also aimed at Buffett's investment strategy, revealing that he had tried to waste in the past by trying to make a small number of profitable investments.
Ackman made billions of dollars in hedges predicting Covid-induced market conflicts — said he called Buffett in February 2020 to warn him about the pandemic.
“He dismissed my concerns and when the proverb SH-T was hit by fans, I thought Buffett would take advantage of this incredible opportunity to buy stocks.
Ackman also claimed he tried to broker the sale of Hilton Hotels to Berkshire, but Buffet passed.
Investment company Blackstone was to buy the hotel chain in 2007 with a leveraged buyout worth $26 billion.
“It would have been an incredible home run for Berkshire,” Ackman said.
He denounced Buffett's missed opportunity for refusing to switch his investment strategy.
“Warren has this price discipline. In this pricing sector, he won't buy it no matter how good the business is. [so] Why does he have to change? ” he said.
“But we are in a world where there are amazing businesses with very long-term growth trajectories. Since we have to pay more than 10 times the operating profit to be successful in purchasing stocks and buying the business, I think the market has become more expensive compared to what he is ready to pay,” he added.
Despite his harsh comments, Ackman has made it clear that he still praises the iconic investors and wants to surpass his success.
“My long-term ambition has always been to have a better record than Buffett,” he said.
He added that he would like to create a “modern version” of Berkshire Hathaway as base with real estate company Howard Hughes.
