Billionaire Bill Ackman has become one of the most followed investors of the modern era.
His hedge fund, Pershing Squarestypically manages a concentrated portfolio of 10 to 12 stocks (but sometimes more), in which he and his team perform in-depth, bottom-up fundamental analysis of individual names trading at attractive valuations relative to their fair value.
Did you miss Nvidia in 2009? This rare signal flashes again. In 2009, a “Double Down” signal sounded for a little-known chipmaker called Nvidia. For the first time in years, this same signal of “total conviction” rings out for a company a hundredth the size of Nvidia. Continue “
Ackman would consider himself a modern-day Warren Buffett and would not be afraid to hold stocks for longer periods of time. His portfolio currently has several hyperscalers, so he’s not necessarily worried about artificial intelligence, but he also has a good understanding of different market cycles, having been through several during his career.
If a stock market crash happens, Ackman would advise investors to do this thing now.
Ackman thinks like Buffett during stock market crashes
Investors are certainly becoming nervous about a market that has been on an uptrend for several years, even if it exhibits great volatility. It seems like not a day goes by without some market strategist or TV pundit speculating about an impending stock market crash. Of course, many investors remain quite optimistic.
Even though AI appears to be a revolutionary technology so far, other market indicators suggest that the market is trading at high levels not seen since the dotcom bubble. No one can guess whether a stock market crash will occur or not because predicting short-term events in the stock market is almost impossible.
Similar to Buffett, who advises investors to “be fearful when others are greedy, and greedy when others are fearful,” Ackman also views any selloff as an opportunity. “Whenever something that creates uncertainty happens in the markets, stocks usually go down and risk premiums go up,” the billionaire said in a fireside chat in 2025. “If you wait until the uncertainty goes away, then everything will revalue… (and) it’s much more likely to return to its fair value.”
Ackman added: “As an investor, you should be excited at all times…it gets uncertain, and the clouds come, the storm comes. That’s when you want to have capital to invest.”
His advice is very sound for long-term investors. Buying stocks at high valuations when the market is high can still work in the long run. However, it’s even better when you can take advantage of a temporary market disruption to jump into trading stocks at a falling valuation, especially if it has more to do with trading activity than the company’s fundamental business.
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