The bet on AI stocks and the ambition for "Buffett 2.0"

(Dan Tri Newspaper) - Aspiring to become the modern-day Buffett, Ackman is betting on a surprising AI stock and quietly building a "new Berkshire."

In 1965, Warren Buffett took over a failing textile company called Berkshire Hathaway. But instead of letting it sink, he made what is considered a "genius" move: he shifted to insurance – a business that generated a steady stream of cash flow, allowing him to invest and multiply his wealth exponentially.

Nearly 60 years later, Berkshire is worth over $860 billion, an increase of more than 5.5 million percent since Buffett took over. He and his trusted partner Charlie Munger are admired as investment legends, with a simple yet effective philosophy of buying and holding value businesses.

Bill Ackman wants to "repeat Buffett's feat" 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 stake in Howard Hughes Holdings to nearly 47%, implicitly confirming his ambition to transform the company into a "new Berkshire"—a conglomerate that controls numerous other companies, both privately held and publicly 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 is making a big bet on an AI stock that has performed 855% better over the past 10 years, but it's not Nvidia, the stock currently being sought after by Wall Street.

So what exactly are the "non-Nvidia" AI stocks that Ackman just bought?

In the first quarter of 2025, the financial markets witnessed Bill Ackman making three notable acquisitions: Hertz Global, Uber Technologies, and Brookfield Corporation.

However, the most noteworthy move came recently, when Pershing Square quietly added Amazon stock to its portfolio. This is particularly noteworthy because Ackman's portfolio is extremely concentrated, usually consisting of fewer than a dozen stocks and completely lacking the hottest name in the AI ​​market, Nvidia.

Billionaire hedge fund manager Bill Ackman is looking to replicate the "Berkshire Hathaway miracle" by acquiring nearly half of Howard Hughes Holdings and aggressively investing in an AI stock that has increased almost ninefold in a decade (Photo: Getty).

So why Amazon, a giant already familiar to investors? Ryan Israel, Chief Investment Officer of Pershing Square, offered this explanation: “We believe Amazon can weather any slowdown in its Amazon Web Services (AWS) cloud computing segment, and we think tariffs will not significantly impact retail profits.”

This statement reflects a deep belief in Amazon's resilience and inherent growth potential, despite macroeconomic fluctuations or competitive pressures.

With a phenomenal 855% growth rate over the past 10 years, Amazon has proven its superior position. The question isn't "is Amazon an AI stock?" but rather "how significant is the role of AI 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, this value is built on three strong growth pillars, which are also three booming sectors globally:

E-commerce: Amazon is the largest online retailer in the US. E-commerce sales in the country are projected to grow by approximately 8% annually until 2028.

Digital advertising: Amazon is the world's third-largest adtech company, behind only Google and Meta. Advertising spending in the US retail industry is projected to increase by 17% annually.

Cloud computing (AWS): Amazon Web Services is the largest public cloud computing provider on the planet. According to Grand View Research, this sector will grow by approximately 20% annually until 2030.

Moreover, 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 around 1,000 generative AI applications, which help increase efficiency in every aspect – from operations management to customer service.

AWS currently holds an advantage in the AI ​​race thanks to its three-tiered strategy:

Infrastructure: Developing custom chips for training and inferring AI models.

Platform: Provides model development services similar to Amazon Bedrock.

Application software: Deploying specific AI products such as Amazon Q.

According to CEO Andy Jassy, ​​Amazon's AI revenue has reached billions of dollars annually and is still growing at over 100% per year.

Despite Ackman's aggressive buying of Amazon shares, experts at Stock Advisor (a renowned analytical group of The Motley Fool) have not included this stock in their current "Top 10" list.

However, that doesn't mean Amazon is a bad stock; it just shows that in a constantly changing market, there are always new and more prominent opportunities if you know how to find them at the right time and in the right place.

Billionaire Bill Ackman's inclusion of Amazon in his portfolio – one of the world's 20 most successful hedge fund managers – sends a clear signal: he is making a long-term bet on AI, e-commerce, and the digital economy, with Amazon at the heart of all three.

Ackman is rewriting the “Berkshire legend” in his own style, with Howard Hughes Holdings and a focused portfolio of stocks. Amazon may not be a “hot stock” like Nvidia, but it is a giant ship that is steadily accelerating.

For long-term investors, this could be the time to start boarding the train in small increments, just like 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