Bill Ackman Plans to Build the Next Berkshire Hathaway -- Here's How You Can Invest in It

Group 1 - Bill Ackman plans to create a modern-day Berkshire Hathaway through a majority stake in Howard Hughes Holdings, which will be publicly traded [1][4] - Ackman's investment strategy involves concentrating capital in a few high-conviction stocks rather than diversifying across many [2] - Ackman currently holds a 37.6% stake in Howard Hughes and aims to increase this through a proposed merger with a new subsidiary of Pershing Square [3][5] Group 2 - The proposal includes purchasing approximately 11.8 million shares from existing investors for about $1 billion at $85 per share, along with a $500 million share repurchase [5][6] - Existing investors will have the option to receive cash or roll their shares into the new company, potentially resulting in Pershing owning between 61.1% and 69.2% of Howard Hughes [6] - Post-transaction, Howard Hughes Corporation, the main subsidiary, is expected to remain unchanged, while the parent company will diversify by acquiring other businesses [7][8] Group 3 - Ackman envisions the new holding company as a platform for acquiring controlling interests in various businesses, enhancing capital access for both Howard Hughes Holdings and its real estate subsidiary [9] - The leadership structure will see Ackman as CEO and Chairman, with other key Pershing Square leaders in significant roles [8][9] - The transaction is pending approval from Howard Hughes' board and requires finalization of certain details before proceeding [9]