Bill Ackman's Chipotle Bet Still Sizzles Despite 52-Week Low

Core Insights - Bill Ackman's investment in Chipotle Mexican Grill has significantly declined, with the stock reaching a 52-week low of $38.76, down 35% year-to-date and 28% over the past year [1][3] - Ackman initially purchased Chipotle shares in 2016, witnessing a remarkable increase of over 388% from his average buy price of $8.08, making it a cornerstone of Pershing Square Capital's portfolio [2][3] - Despite the current downturn, Chipotle still represents 5.82% of Pershing's portfolio, indicating its importance despite recent performance [3] Investment Strategy - Ackman's strategic selling from 2018 to 2024 demonstrates effective timing, as he sold millions of shares at prices ranging from $9 to $62, securing billions in gains while maintaining a significant position [4][5] - This ability to cash out at peak valuations has provided a buffer for Pershing Square's portfolio against the current market decline [5] Long-term Outlook - Despite the recent stock pullback, Chipotle's long-term performance and strategic initiatives, such as digital ordering and loyalty programs, continue to attract investor interest [6] - Ackman's long-term confidence in Chipotle's pricing power and growth potential suggests that the current dip may be viewed as a temporary setback rather than a fundamental collapse [6][7]