Bill Ackman's Profit Powerhouse: How 4 Companies Drive His $97 Million Annual Earnings

Bill Ackman, the boss of Pershing Square Capital Management, is a smart money guy. He's famous for making clever moves in the stock market. He went to Harvard University and did something amazing in March 2020. He saw that the stock market was going to fall, and he made a lot of money from it. He turned $27 million into $2.6 billion in just one week! Recently, he made $200 million by selling something called "30-year U.S. Treasuries" in October.

Ad

But here's the thing: Ackman isn't just about fast money. He also likes to have a steady income. He talks about investing in big, strong companies that make a lot of money. He calls them "simple, predictable, free-cash-flow generative, dominant companies with a moat around them," just like Warren Buffett says.

As of December 2, Ackman has eight companies in his collection that bring in $97 million in money every year. But the real heroes in this money-making squad are four special stocks.

Advertisement

1. Restaurant Brands International

Think about your favorite fast-food places like Burger King or Tim Hortons. Well, Ackman has a lot of shares in the company that owns these brands, Restaurant Brands International. It's like he owns a piece of these famous places! He gets about $51 million every year from them. That's more than half of all the money he gets from his investments. Ackman really likes that these places are doing well and making a lot of money.

2. Lowe's

Have you ever been to Lowe's, the place where you can get stuff to fix your house? Ackman has shares in this big store. Even though Lowe's stock hasn't gone up a lot this year, Ackman still likes it because it gives him about $31 million every year. That's a lot of money just from having shares in Lowe's!

3. Hilton Worldwide

Remember staying at a hotel? Hilton is a big company that owns lots of hotels. Ackman has a bunch of shares in Hilton, and they make him about $6 million every year. Hilton is doing well because more people are traveling again, and that's good for business. Ackman is happy with how his investment in Hilton is going.

4. Canadian Pacific Kansas City

Now, this one is about trains. Canadian Pacific Kansas City runs a big railway that goes through the U.S., Canada, and Mexico. Ackman owns a lot of shares in this railway company, and it gives him almost $8.5 million every year. Even though the stock is not as expensive as Ackman thinks it should be, he believes it will make more money in the future. He says it's like a treasure that people haven't found yet.

So, there you have it! Bill Ackman's money-making team includes Burger King and Tim Hortons, Lowe's, Hilton hotels, and a big railway. These companies bring in a lot of money for Ackman, and he's happy with how things are going. It's like having a dream team of money-making friends!

Also Read: Warren Buffett's Smart Solution: How He Wants to Quickly Fix America's Debt