Bill Ackman’s Ambition: Transforming Howard Hughes Into the Next Berkshire Hathaway

Bill Ackman is making waves in the investment world once again. His latest move with Pershing Square could reshape the future of Howard Hughes Holdings and echo the legendary path of Berkshire Hathaway. This strategic shift highlights Ackman’s ambition and his evolving legacy among top investors.

Bill Ackman’s $900 Million Play for Howard Hughes

On May 5th, 2025, Bill Ackman’s Pershing Square agreed to a massive $900 million investment in Howard Hughes Holdings. This deal increases Ackman’s control to a 46.7% stake and installs him as executive chairman. Ackman's motivation is clear: he envisions Howard Hughes as a "modern-day Berkshire Hathaway." With this approach, he seeks to create a diversified company that compounds value for its shareholders. Read more about the groundbreaking deal on CNBC.

The Vision: Learning from Warren Buffett’s Model

Ackman has been open about his admiration for Warren Buffett. Buffett’s Berkshire Hathaway evolved from a struggling textile manufacturer in 1965 to one of the world’s most successful conglomerates. Now, Ackman is aiming for a similar transformation with Howard Hughes. At a recent conference, he shared, “We’re going to start not with elephants, not rabbits, but small animals.” This phrase underscores his patient growth strategy, where he focuses on smaller, quality acquisitions rather than rushing after massive deals.

His approach, while inspired by Buffett, is not identical. Ackman is willing to pay higher valuations for companies with rapid growth prospects, unlike Buffett’s more disciplined stance on price. He stated, “Many companies we invested in over time didn't look cheap at the time, but they became cheap very quickly by virtue of growth in the earnings, cash flow of the business over time.” Explore more insights from Ackman’s interview on Yahoo Finance.

What Sets Bill Ackman Apart?

Unlike many activists, Bill Ackman is shifting from short-term campaigns to long-term value investing. His hands-on approach at Howard Hughes signals a new era for the company, focusing on capital allocation, management incentives, and the quality of new business partners. This strategy could attract investors seeking growth beyond traditional real estate.

Ackman also recognizes the importance of succession planning. By positioning Ryan Israel, Pershing Square’s CIO, as Howard Hughes’ new chief investment officer, he is preparing the company for sustainable growth well into the future.

Looking Ahead: The Next Berkshire Hathaway?

Can Bill Ackman really turn Howard Hughes into the next Berkshire Hathaway? While only time will tell, his bold investment and clear vision are drawing attention from both Wall Street and retail investors. His willingness to adapt Buffett’s model, yet chart his own course, demonstrates why Ackman remains a pivotal figure in finance.

For continuing updates on Pershing Square’s strategies and Bill Ackman’s portfolio changes, keep an eye on reputable financial news sources and company statements. Ackman’s journey could inspire the next generation of value-focused investors.