Bill Ackman: Buying Microsoft, Meta, Amazon Today Like Berkshire 25 Years Ago

Billionaire investor Bill Ackman of Pershing Square believes that mega-cap tech stocks like Microsoft (MSFT), Meta (META), and Amazon (AMZN) offer a rare investment opportunity similar to buying Berkshire Hathaway (BRK-B) 25 years ago. On the All-In Podcast, Ackman argued that the market is treating these companies as yesterday's story while money flows to AI startups, much like Berkshire was treated during the dot-com bubble.

Rating Change

Ackman did not issue a formal rating change, but his comments signal a shift in his view on large-cap tech. His fund exited most tech holdings in 2022 but is now returning.

Analyst's Rationale

Ackman sees these companies generating massive free cash flows with growth rates above market averages, yet trading at historically low P/E multiples. For example, Meta's P/E is around 20, while Berkshire's was about 15 in 2000. He added that the market overemphasizes disruptive AI risks and ignores intrinsic value.

Context

Ackman's comments come as mega-cap tech stocks retreat from all-time highs amid AI spending slowdown fears. Other analysts, such as those at Goldman Sachs, are more cautious, noting valuations remain high versus historical averages.

What to Make of It

Ackman's remarks are not a direct buy recommendation but offer a value perspective for investors. Fundamental analysis of each company remains essential before any investment decision.