Bill Ackman’s Journey From a $14,000 Job to Billionaire Investor

Bill Ackman’s rise as an investor has surprisingly humble roots. His journey began with a $14,000 sales gig during his time at Harvard University. While studying there, he sold advertisements for a travel guide called “Let’s Go” and, surprisingly, realized he had a knack for sales. This introduced him to the dynamics of business, although his path shifted after joining his father’s real estate firm in New York post-graduation. He found the world of entrepreneurs and developers far more fascinating than the real estate transactions themselves.

According to a report from Fortune, Ackman was linked to Leonard Marks through his father. Marks suggested Benjamin Graham’s “The Intelligent Investor,” a book that notably influenced Warren Buffett. This book helped Ackman envision a career in investing. Over time, these early insights contributed to the establishment of Pershing Square Capital Management.

Starting Influence: Harvard Sales Job

For Ackman, his initial meaningful financial success surfaced while still at Harvard. He mentioned on a Fortune podcast, “One of my early formative experiences was at Harvard University, where I took a job at Harvard Student Agency selling advertising for Let’s Go Travel Guides, a series of books in which Harvard students wrote reviews of hotels around the world.” By the end of that job, he had amassed around $14,000. For a student, that was quite a sum and sparked an understanding of how commercial skills could translate to income. He had already shared ambitious financial goals with his father, stating he wanted to be a millionaire by 30, reach $100 million by 40, and maintain millions by 50. Those early experiences laid the groundwork for what’s to come.

Transitioning to Investing

After earning his degree, Ackman joined his father’s commercial real estate firm, the Ackman Ziff Real Estate Group. It made sense to start there, given his father’s successful business background, which allowed Ackman firsthand access to the world of real estate and entrepreneurship. However, he found that the entrepreneurs he encountered intrigued him much more than his actual duties at the firm. This realization was a pivotal moment, steering him toward a career in investing rather than solely commercial real estate.

The Influence of a Classic Investing Book

A pivotal moment in his early thinking came from the book recommended by Marks, which was Graham’s “The Intelligent Investor.” Graham’s approach emphasized buying securities with a safety margin and viewing stock as ownership rather than merely numbers on a screen. Warren Buffett, having studied under Graham, became an emblematic practitioner of this philosophy. For Ackman, this recommendation transformed into a foundational element of his investment strategy, helping him to understand companies and capital from a new perspective.

Harvard Business School and Beyond

With a clear aim, Ackman attended Harvard Business School to equip himself with the knowledge needed to be a successful investor. After earning his MBA in 1992, he co-founded Gotham Partners with fellow Harvard alum David Berkowitz. This marked his entry into the investment arena, ultimately leading to one of the most recognized activist investment firms in the U.S. However, Gotham Partners wasn’t his final chapter. After it disbanded, Ackman established Pershing Square Capital Management in 2004, where he linked his early sales experience, exposure to entrepreneurs, and Graham’s insights into investing.

Growing Pershing Square into an Investment Leader

Under Ackman’s leadership, Pershing Square expanded significantly, becoming a key shareholder in various publicly traded companies while actively pursuing changes to improve their businesses. Notable investments include stakes in Chipotle and Canadian Pacific Railway, the latter of which attracted attention during major planning shifts. Pershing Square also generated substantial returns in Chipotle before eventually selling their position. Furthermore, during the volatility of the 2020 coronavirus crisis, Ackman’s corporate credit investments skyrocketed from about $27 million to roughly $2.6 billion in just a few weeks.

Learning from Buffett’s Model

Ackman admires Buffett not just because he was influenced by Graham’s book, but also for how Buffett has structured Berkshire Hathaway. This admiration guides Ackman’s objectives as Pershing Square aims to go public in 2026. Ackman is interested in creating a structure for investors that allows long-term capital retention—a principle Buffett termed “perpetual capital.” This is distinct from traditional funds where investors can redeem shares, often requiring managers to liquidate investments. In contrast, Berkshire allows shareholders to trade amongst themselves while keeping capital within the company. Ackman aspires for Pershing Square to adopt a similar model.

A Long Road to Success

Today, Pershing Square manages tens of billions of dollars, a stark contrast to the $14,000 Ackman made selling ads back in college. His early role, combined with insights from his father’s real estate background and the teachings of Graham, equipped him with a multifaceted understanding of business and investing. While his career now involves huge investments often worth billions, it began with a gradual introduction to the world of investing rather than an overnight success.