Bill Ackman, founder and CEO of Pershing Square Capital Management, joins hosts Michael Mauboussin and Tano Santos to trace the arc of his investing journey—from his early days in real estate finance to founding Gotham Partners and eventually building Pershing Square into a $30 billion firm. Bill discusses formative moments that shaped his thinking, including his controversial early short of MBIA, the painful lessons of the Valeant episode, and the transformation brought about by adopting a permanent capital structure. He also unpacks his investment philosophy, the importance of durability and moats, and his team’s approach to risk, activism, and concentrated investing. Along the way, Bill offers thoughts on AI, higher education, and what excites—and concerns—him about the future — and much more!

Key Topics:

● Bill's near-death experience and early independence (2:19)

● Skills learned at Harvard and lessons from rowing and sales (3:50)

● Real estate foundation and Gotham Partners launch (6:44)

● Early credit derivative bet and discovery of MBIA issues (12:23)

● Formation and lessons from Pershing Square (19:02)

● The three eras of Pershing Square and the importance of permanent capital (21:03)

● Bill's investment philosophy and focus on durable moats (27:31)

● Thoughts on capital-light, network-effect businesses (33:58)

● How Pershing Square handles portfolio concentration and risk (36:30)

● Impact of AI and the resilience of activist investing (40:17)

● Student pitch trends and what makes a strong investment case (43:25)

● What Pershing looks for when hiring investment professionals (47:29)

● What worries and excites Bill today (51:34)

● Recommended reading and X as a research tool (54:34)

● And much more!

Mentioned in this Episode:

● Pershing Square Capital Management

● Gotham Partners

● MBIA Inc.

● Farmer Mac

● Herbalife

● Valeant Pharmaceuticals

● General Growth Properties

● Hilton Worldwide

● Uber Technologies

● Universal Music Group

● Brookfield Asset Management

● The Financial History of Berkshire Hathaway by Adam Mead

● The Compounders: Lessons from 50+ Stories of Business Growth by Travis Wiedower

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