Pershing Square Capital Management founder Bill Ackman said sharp price swings have let his firm add to selected stocks at lower prices, while warning that speculative trading can put investors at risk.
CNBC reported that Ackman made the comments Tuesday on its “Squawk Box” program. “We’re back to the casino-type markets when there was 95% leverage,” he said, arguing that leverage and speculation contribute to large moves in stocks. Ackman said those conditions can help Pershing over the long term but are not good for the country, economy or society.
To illustrate how market swings affected the portfolio, Ackman pointed to Alphabet, which he said Pershing bought after a sharp move following ChatGPT’s launch. He also said the firm took positions in Microsoft during this year’s “SaaSpocalypse” selloff and in Amazon after its shares fell following President Donald Trump’s tariffs.
Ackman expressed concern about one-day leveraged products, perpetual futures and sports betting. He said these can be dangerous for people seeking quick gains in the stock market, a pattern he warned could have serious consequences for investors.
He praised Visa and Mastercard as among the world’s leading businesses and said he was bullish on Netflix, where he disclosed a position in August, CNBC reported.
