This is how a financial guru built his investment portfolio: should you bet on the same stocks as him?

This is how a financial guru built his investment portfolio: should you bet on the same stocks as him?

While many financial advisors recommend diversifying your investments to protect yourself against risk, this guru’s approach has worked very well for him, as in the last year, the value of his holdings has risen more than 51%.

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Bill Ackmannthe renowned billionaire hedge fund manager from Pershing Square Capital Managementmaintains a portfolio of just seven shares. This concentrated approach allows you to invest heavily in companies that you believe have exceptional potential.

While many financial advisors recommend diversifying your investments to protect against risk, Ackman’s approach has worked for him: In the last year, the value of its shares rose more than 51%.

So should you invest in the same stocks as Ackman? Below, we take a closer look at each of the companies he owns and what makes them stand out from their competitors.

Bill Ackmann’s 8 Stock Picks:

  • Howard Hughes Holdings Inc. (HHH): developing self-sufficient communities.
  • Restaurant Brands International Inc. (QSR): fast food giant with a diversified portfolio (Burger King, Tim Hortons, Popeyes).
  • Chipotle Mexican Grill Inc. (CMG): Fast casual food with an emphasis on fresh ingredients and customization.
  • Hilton Worldwide Holdings Inc. (HLT): World leader in hospitality with a strong loyalty program (Hilton Honors).
  • Alphabet Inc. (GOOG and GOOGL): the parent company of Google, a technology giant with a presence in digital advertising, cloud computing and artificial intelligence.
  • Canadian Pacific Kansas City Limited (CP): Transcontinental railroad offering freight transportation services, logistics solutions and supply chain expertise in North America.
  • Lowe’s Companies Inc. (LOW): Leading home improvement retailer serving both retail and professional consumers.

Invest like Ackman? Consider your own investment profile

While Ackman’s picks have impressive track records, individual investors should consider their own financial goals, risk tolerance, and investment horizon before investing in these stocks. Each company, despite its strengths, can carry risks inherent to its industry.

The success of Ackman’s concentrated approach It is not necessarily replicable for all investors, and some may need or prefer a more diversified portfolio. Before making any major financial decisions, it’s a good idea to speak with a financial advisor who can take your individual situation into account.

Source: Ambito

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