Legendary investor Bill Ackman has been looking for winning companies and stocks for decades. The rise of artificial intelligence and use cases has changed how he looks at companies, with disruption from emerging technology a real risk.
• Pershing Square stock is among today’s top performers. Why is PS stock surging?
Ackman on AI
The Pershing Square (NYSE:PS) CEO has invested in Magnificent Seven stocks, with Microsoft Corp (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META) and Amazon.com Inc. (NASDAQ:AMZN) having prominent positions.
Ackman’s recent comments on artificial intelligence and the increased risk it brings may explain why.
Speaking with Shane Parrish on "The Knowledge Podcast," Ackman said that when looking at investments, he tries to make sure if the stock market shut down for 10 years, he would be fine owning a stake in the company.
Ackman said it’s important to look at revenue generated by the company and predict what the business will look like in 10 or 20 years.
That’s where AI may come in.
"What AI has done is massively increased the risk of disruption," Ackman said.
Ackman said you have to think about the business you invest in and how AI may disrupt it.
The investor said that he has to be very careful now when looking at the moats that companies have and how wide they are, as there will be some businesses that will disappear as a result of AI.
The Positives of AI
Ackman admitted during the interview that Pershing Square used AI for investment research. He also highlighted the advancements in medicine that AI is helping to accomplish.
The investor said AI provides opportunities, with the creation of businesses that couldn’t happen before becoming more likely.
"The pace of improvement is by far the fastest of anything I’ve ever seen."
Ackman said AI will allow people who were not entrepreneurs before to become entrepreneurs.
As for his investments, Ackman highlighted the recent launch of the Muse AI agent from Meta, which he said he hadn’t personally used yet. Ackman said people in the Pershing Square office had used Muse and were talking about how easy it was to create agents.
Another Pershing Square investment highlighted was Brookfield Corp (NYSE:BN), a player in the physical infrastructure sector.
"Brookfield is an AI winner for sure."
Imagen: Shutterstock
Login to comment