Bill Ackman talked about how he began his career as an investor
Bill Ackman, CEO of Pershing Square Capital Management, said he decided to become an investor after working at his father’s company, Ackman-Ziff Real Estate Group, which operated in New York’s commercial real estate market. He shared this on the Fortune Titans and Disruptors of Industry podcast.
While studying at Harvard, Ackman sold advertising for the Let’s Go travel guides, in which Harvard students published reviews of hotels in various parts of the world. He was paid on a commission basis. According to the investor, he earned $14,000, which seemed like a large sum to him at the time and marked his first taste of success in business.
After graduating, Ackman returned home and began working at his father’s company. He noted that the entrepreneurs and developers he spoke with on the phone interested him more than the work itself, so he decided to pursue a career as an investor. His father introduced him to Leonard Marks, who advised him to read Benjamin Graham’s book *The Intelligent Investor*.
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Graham is referred to in *Fortune* as the “father of value investing”; his approach had a significant influence on the young Warren Buffett. Ackman calls himself a follower of Buffett and considers the legendary investor his unofficial mentor.
In 1992, Ackman earned an MBA from Harvard Business School and, that same year, founded his first investment firm, Gotham Partners, together with David Berkowitz. In 2004, after Gotham Partners was wound up, he founded Pershing Square Capital Management. Fortune describes Pershing Square as a $35 billion investment firm.
According to Ackman, approximately 98% of Pershing Square’s capital is invested in public companies, where the firm is often one of the largest shareholders. Investors can sell their shares to other investors rather than requiring the funds to redeem them directly. According to Ackman, this model provides Pershing Square with “permanent capital,” similar to the structure of Berkshire Hathaway.
