Billionaire Investor Bill Ackman Just Sold This Railway Stock 'With Regret' So He Could Buy the Dip on a Mag Seven Stock At a "Uniquely Attractive Time"

Core Viewpoint - Billionaire investor Bill Ackman, through Pershing Square Capital Management, is actively managing a $12 billion stock portfolio and aims to emulate Berkshire Hathaway's success [1] Group 1: Recent Investment Moves - Pershing Square recently sold its stake in Canadian Pacific Kansas City, a decision made "with regret," to invest in Amazon at what they consider a "uniquely attractive time" [2][7] - The sale of Canadian Pacific was influenced by its sensitivity to economic conditions and tariffs, as noted by Pershing's Chief Investment Officer Ryan Israel [6] Group 2: Canadian Pacific Kansas City Overview - Canadian Pacific Kansas City, formed after a $31 billion acquisition of Kansas City Southern, is the only railroad company with a single-line railway connecting Canada, the U.S., and Mexico [5] - The stock has appreciated nearly 67% over the past five years, indicating strong performance [6] Group 3: Amazon Investment Rationale - Pershing Square already holds shares in Alphabet and views Amazon favorably due to its dual strong business segments: retail e-commerce and Amazon Web Services (AWS) [7][8] - AWS has shown significant growth, with a 17% year-over-year revenue increase in the first quarter, and is expected to capture a larger share of IT workloads moving to the cloud [9] Group 4: Market Position and Valuation - Amazon's current valuation is less than 34 times forward earnings, which is lower than its five-year average of 39, making it an attractive investment opportunity [10] - Despite potential consumer spending slowdowns in a recession, Amazon's diversified revenue streams and strong market position in cloud services are seen as mitigating factors [10]