Legendary investor Bill Ackman knows the value of finding the right CEOs for companies he runs and invests in.

Picking the Right People

As the leader of Pershing Square (NYSE:PS), Ackman employs people who make financial decisions. As an activist investor, Ackman also made sure the right people were CEOs of companies he invested in.

Speaking with Shane Parrish on "The Knowledge Podcast," Ackman said he feels confident he can find the best people in the world for both roles.

"Over time, I’ve become a very good judge of people," Ackman said.

Ackman recalled helping choose Brian Niccol as CEO of Chipotle Mexican Grill (NYSE:CMG) when he was an investor in the restaurant company. The company picked Niccol to lead it after several food safety issues.

Niccol’s name kept coming up in conversation as a candidate, Ackman recalled. The investor said it’s important to use expert networks and talk to people who worked with a candidate and worked against or in competition with them to get a better idea about their strengths and weaknesses.

Ackman said you should look for glowing references.

In face-to-face meetings, Ackman said he can quickly get a good sense of a person’s character and honesty, which makes management decisions easier.

"You can assess that in an hour."

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Ackman on Success at 60

During the interview, Ackman reflected on his life as a man who recently turned 60. He said that being a short seller made him a villain in the past and some people have formed misconceptions of him.

Ackman said the truth is that Pershing Square has not made an activist investment since 2016 and probably won’t again.

Things have changed, and Ackman believes he has significant influence and could use dialogue and social media to push for change on any of his current or upcoming investments.

Ackman said the returns Pershing Square posts for investors are one of the main ways he measures success.

Ackman said he wants to have the greatest impact on the largest number of people, from family to friends and to the people who invested in Pershing Square, to be able to better enjoy retirement one day.

"Success for me is having a significant life."

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