The Motley Fool·2025-10-24 08:24Core Insights - Bill Ackman, a billionaire hedge fund manager, is investing heavily in Amazon and Uber, aiming to build a modern-day Berkshire Hathaway through his hedge fund, Pershing Square Capital [1][5][3] Group 1: Bill Ackman's Investment Strategy - Ackman has increased his stake in Howard Hughes by $900 million, viewing it as a platform for a high-returning holding company [3] - Ackman's hedge fund has reported a total return of 128% over the last five years, outperforming the S&P 500 by 14 percentage points [5] - Ackman has acquired 5.8 million shares of Amazon, making it the fourth largest holding in his portfolio at 9% [7] - Ackman has also purchased 30.3 million shares of Uber, which now constitutes 21% of his portfolio, making it his largest holding [7] Group 2: Amazon's Business Outlook - Amazon operates in three rapidly growing industries: e-commerce, advertising technology, and cloud computing, with a strong presence in North America, Western Europe, and the Middle East [9] - Amazon Web Services (AWS) is positioned to benefit from increasing demand for AI infrastructure, having developed custom chips and a range of AI cloud services [10] - The company has implemented over 1,000 generative AI applications to enhance its retail operations, improving profitability [11] - Wall Street anticipates Amazon's earnings to grow at 17% annually over the next three years, making its current valuation of 33 times earnings reasonable [12] Group 3: Uber's Business Model and Growth Potential - Uber operates the largest ride-sharing and one of the largest food delivery platforms globally, leveraging cross-promotion between services [14] - The company utilizes machine learning for operational efficiency and is well-positioned for partnerships in autonomous driving technology [15][16] - Wall Street projects Uber's earnings to increase at 26% annually over the next three years, with a current valuation of 16 times earnings, indicating a favorable investment opportunity [17]