Bill Ackman Says MSFT, AMZN and NFLX Fit His ‘Enormously Valuable’ 20-Year Investing Test
Key takeaways
- Ackman backs MSFT, AMZN and NFLX as long‑term winners, underscoring their strong cash flows and durable business models.
- MSFT 18× earnings
- NFLX 18× earnings
- MSFT, AMZN, NFLX ~30% of portfolio
What happened
Bill Ackman, CEO of Pershing Square, said that Microsoft (MSFT), Amazon (AMZN) and Netflix (NFLX) fit his 20‑year investing test, describing them as durable, cash‑flow generating businesses that can survive a long market shutdown.
Why it matters
Ackman’s endorsement signals confidence in these mega‑cap tech names and highlights his strict long‑term criteria, which may influence other investors and market sentiment toward the sector.
Short-term and longer-term
Short-term. Ackman’s praise may lift short‑term sentiment for MSFT, AMZN and NFLX as traders look for confirmation of their long‑term strength.
Longer-term. For investors, Ackman’s comments reinforce the case for these stocks as part of a long‑term portfolio.
Words on this card
- AI
- Artificial intelligence, computer systems that perform tasks that normally require human intelligence.
- Earnings growth
- The rate at which a company’s profits increase over time.
- Internal rate of return (IRR)
- The annualized effective compounded return rate that makes the net present value of cash flows equal to zero.
- Portfolio weight
- The percentage of a portfolio’s total value that is invested in a particular security.