If you want to invest like a billionaire, you have to be willing to buy shares when a company is experiencing temporary problems. It's only when the near-term outlook is gloomy that you can invest in a great business below what it's worth. Pershing Square's Bill Ackman and CEO Warren Buffett have executed a -based strategy to amass multi-billion-dollar fortunes.
While Wall Street chases hot tech stocks, Ackman and Buffett are finding great value in these top brands. Let's see perhaps why. 1.
Nike Pershing Square disclosed a portfolio of U.S.-based stocks worth $10 billion in the second quarter.
It added two new stocks to the portfolio, including . Ackman's investment strategy involves buying stakes of large, profitable companies when they are on sale, and Nike certainly fits the bill. It dominates the sportswear market with $51 billion in trailing revenue -- and footwear generates two-thirds of that amount.
Nike didn't get to where it is today without plenty of ups and downs over the past 50 years. For an apparel business, revenue can falter during economic recessions or periods of soft consumer demand. High and have taken a toll on the consumer over the last few years, and Nike felt the sting.
The company's revenue fell 2% year over year in the May-ending fiscal fourth quarter. Management is calling fiscal 2025 a transition year as it repositions itself for long-term growth. Ackman's purchase is timely.
Nike stock is trading at its lowest multiple since 2017. Before the rece.