In 1965, Warren Buffett took over a failing textile company called Berkshire Hathaway. But instead of letting it sink, he made a move that was considered a “genius”: he switched to insurance - a business that generated a steady cash flow, allowing him to invest and multiply his assets.
Nearly 60 years later, Berkshire is worth more than $860 billion, up more than 5.5 million percent since Buffett took over. He and his close associate Charlie Munger are revered as investing legends, with a philosophy of buying and holding valuable businesses that is both simple and effective.
Bill Ackman wants to "repeat Buffett's miracle" in the 21st century
Now Bill Ackman, the billionaire founder of hedge fund Pershing Square Capital Management, is aiming to replicate that iconic success.
Ackman has just increased his ownership in Howard Hughes Holdings to nearly 47%, thereby implicitly affirming his ambition to turn this company into a "new version of Berkshire" - a group that controls many other companies, from private to listed.
If he can do that, Ackman could become the “next Warren Buffett” of the 21st century.
And a key part of his strategy has just been revealed: Ackman bet big on an AI stock that has returned 855% over the past 10 years, but it's not Nvidia, the stock that Wall Street is hunting for.
So what is the “non-Nvidia” AI stock that Ackman just bought?
In the first quarter of 2025, the financial markets witnessed Bill Ackman make three notable acquisitions: Hertz Global, Uber Technologies, and Brookfield Corporation.
But the most notable move came recently, when Pershing Square quietly added Amazon stock to its portfolio. This was especially notable because Ackman’s portfolio is extremely concentrated, typically consisting of fewer than a dozen stocks, and completely absent of the hottest name in the AI market, Nvidia.
Hedge fund billionaire Bill Ackman is looking to recreate the "Berkshire Hathaway miracle" by acquiring nearly half of Howard Hughes Holdings and investing heavily in an AI stock that has increased nearly ninefold in a decade (Photo: Getty).
So why Amazon, a familiar giant to investors? Ryan Israel, chief investment officer at Pershing Square, explained: “We believe Amazon can weather any slowdown in its Amazon Web Services (AWS) cloud computing business, and do not think tariffs will have a material impact on retail earnings.”
This statement shows deep belief in Amazon's resilience and intrinsic growth potential, regardless of macroeconomic fluctuations or competitive pressures.
With a staggering 855% growth over the past 10 years, Amazon has proven its superiority. The question is not "is Amazon an AI stock" but "how big a role does AI play in Amazon's growth strategy".
Why is Amazon an “AI bargain” in Ackman's eyes?
Amazon is more than just an e-commerce company. With a market capitalization exceeding $2 trillion, its value is built on three pillars of strong growth, and three sectors that are booming globally:
E-commerce: Amazon is the largest online retailer in the US. E-commerce sales in the country are expected to grow by about 8% per year through 2028.
Digital advertising: Amazon is the world's third-largest adtech company, behind only Google and Meta. Ad spending in the US retail industry is forecast to grow 17% annually.
Cloud Computing (AWS): Amazon Web Services is the largest public cloud computing provider on the planet. According to Grand View Research, the sector is expected to grow about 20% per year through 2030.
Not only that, advertising and cloud computing have much higher profit margins than e-commerce, helping Amazon continuously improve its profitability.
Furthermore, few people know that Amazon currently has about 1,000 Generative AI applications, helping to increase efficiency in every step – from operations management to customer care.
AWS is currently gaining an advantage in the AI race thanks to a 3-tier strategy:
Infrastructure: Developing custom chips for AI model training and inference
Platform: Provides model development services such as Amazon Bedrock
Application Software: Implement specific AI products like Amazon Q
According to CEO Andy Jassy, Amazon's AI revenue has reached billions of dollars per year, and is still growing at over 100% per year.
Despite Ackman's big buy of Amazon, experts at Stock Advisor (The Motley Fool's famous analysis team) do not rank the stock as one of their current "top 10 picks."
However, that doesn't mean Amazon is a bad stock, it just shows that in an ever-changing market, there are always new and more outstanding opportunities if you know how to look at the right time and place.
Billionaire Bill Ackman, one of the world's 20 most successful hedge fund managers, adding Amazon to his portfolio sends a clear signal: he is making long-term bets on AI, e-commerce, and the digital economy, and Amazon is at the heart of all three.
Ackman is rewriting the Berkshire mythos in his own style, with Howard Hughes Holdings and a concentrated portfolio. Amazon may not be a “hot stock” like Nvidia, but it is a giant ship that is steadily accelerating.
For long-term investors, this may be the time to start getting on board in small increments, as Buffett did in the 1960s.
Source: https://dantri.com.vn/kinh-doanh/cu-dat-cuoc-vao-co-phieu-ai-va-tham-vong-buffett-20-20250602161606084.htm
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