Warren Buffett vs. Bill Ackman: One Piled Into Amazon While the Other Sold

Group 1: Investor Actions - Berkshire Hathaway sold 77% of its Amazon position in Q4 2025, indicating that Amazon was never a core holding for the company, comprising less than 1% of its equities portfolio [4] - In contrast, Bill Ackman, CEO of Pershing Square Capital Management, has been known for both activist short-selling and long-term investment strategies, holding a concentrated portfolio of about 10 to 12 stocks [2] Group 2: Amazon's Challenges - Amazon faced challenges in the previous year due to tariffs imposed by President Donald Trump and concerns regarding its artificial intelligence (AI) strategy, leading to margin compression and higher prices [5] - The company guided for operating income in Q1 2026 to be below Wall Street analysts' projections and projected $200 billion in capital expenditures for 2026, primarily for AI-related infrastructure, raising investor concerns about potential returns [6] Group 3: Valuation and Market Perception - Amazon's valuation has decreased significantly, now trading at 26.5 times forward earnings, which may have influenced Berkshire's decision to reduce its stake due to concerns over high capital expenditures and the company's competitive position in AI [7]