Bill Ackman’s 8 Principles
- Simple and predictable businesses
- Free cash flow generative
- Dominant market position
- Large barriers to entry
- High return on capital
- Limited exposure to non-controllable extrinsic risks
- Strong balance sheet where outside capital is not necessary
- Excellent management and good governance
Equities
Options
Real Estate
Investors have become major purchasers of homes
In 2021, 25% of homes were purchased by investors. This followed a rising trend since the great recession. Investors target sun belt states with lower regulation and desirable living areas. Despite the idea that these are larger buyers, it is mostly smaller groups with only 3% of purchases made by groups with 10k plus homes2.
References
1.
Investor Talk. Bill Ackman: 8 Principles to Successful Investing. at https://www.youtube.com/watch?v=q6TsybGD_ms (2020).
2.
Henderson, T. Investors Bought a Quarter of Homes Sold Last Year, Driving Up Rents. at https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2022/07/22/investors-bought-a-quarter-of-homes-sold-last-year-driving-up-rents (2022).