5 Most Notable Investments of Bill Ackman: Success Stories and Insights

Bill Ackman is one of the most famous investors in the world. He is known for making bold moves and taking big risks. Through his hedge fund, Pershing Square, Ackman has made some huge investments—some were big wins, while others taught him tough lessons. Let's look at five of his most notable investments and what we can learn from them.

1. Herbalife: The Controversial Short Bet

In 2012, Bill Ackman made headlines when he bet $1 billion against Herbalife, a nutrition company. He believed Herbalife was a pyramid scheme, meaning the company made most of its money by recruiting new sellers instead of selling real products. Ackman thought regulators would eventually shut the company down.

This bold move led to a famous public fight with another big investor, Carl Icahn. While Ackman was betting against Herbalife, Icahn bought a lot of its stock, causing the price to go up. Their heated arguments were shown on TV and caught the attention of many people.

In the end, Herbalife’s stock rose, and Ackman lost hundreds of millions of dollars. This loss hurt his reputation and made him rethink his investment strategies. Ackman learned to be more careful with big, public bets and to avoid personal battles that distract from smart investing.

2. Valeant Pharmaceuticals: A Cautionary Tale

After Herbalife, Ackman made another huge bet on Valeant Pharmaceuticals. He became one of the company’s largest shareholders and even joined its board to try to help make better decisions.

At first, Valeant’s stock soared as the company grew quickly by buying other drug companies and raising prices. But soon, Valeant faced a lot of criticism and investigations over its pricing practices. The stock price crashed, and Ackman’s fund lost over $4 billion.

This experience was a tough lesson for Ackman. He realized the importance of careful research and being aware of risks. After Valeant, he became more cautious and thoughtful with his investments.

3. Canadian Pacific Railway: Activism at Its Best

Not all of Ackman’s investments ended badly. In the case of Canadian Pacific Railway, he showed how an activist investor can make a real difference. Ackman led a campaign to change the company’s leadership, bringing in a new CEO, Hunter Harrison, who had a track record of turning companies around.

Under the new management, Canadian Pacific became much more efficient. Trains ran on time, costs went down, and profits went up. Investors were thrilled with the results.

This success became a model for activist investing. Ackman’s hands-on approach showed that, with the right changes, investors can help companies perform much better.

4. Chipotle Mexican Grill: Turning Crisis into Opportunity

After Chipotle faced major food safety problems in 2015 and 2016, many people thought the company was in trouble. But Ackman saw a chance to invest when the stock price was low.

He didn’t just buy shares—he pushed for changes in Chipotle’s leadership and food safety practices. With new leaders and better safety rules, Chipotle slowly rebuilt its reputation.

As customers returned, Chipotle’s stock price grew, turning this into one of Ackman’s biggest wins. This story shows how a crisis can become an opportunity with smart decisions and strong leadership.

5. The COVID-19 Market Hedge: A Billion-Dollar Windfall

In early 2020, as news of COVID-19 spread, Ackman made a daring move to protect his fund. He bought insurance on company debts, called credit protection, for about $27 million.

When the stock market crashed in March 2020, this credit protection soared in value, earning Pershing Square an incredible $2.6 billion in just a few weeks.

This bold bet made headlines and showed Ackman’s ability to think differently and spot big opportunities, even during uncertain times.

Final Thoughts

Bill Ackman’s investment journey is full of big risks, tough lessons, and major wins. Whether he is fighting for change in a company or using smart strategies to protect his fund, Ackman’s story shows that great investors learn from both their successes and their failures. His most notable investments offer valuable lessons for anyone interested in the world of investing.