Nearly One-Third of Billionaire Bill Ackman's $11.9 Billion Portfolio Is Invested in These 3 Magnificent Growth Stocks

Bill Ackman's Pershing Square Capital Management has a concentrated portfolio of 12 stocks, with nearly a third of its $11.9 billion portfolio invested in Uber and Alphabet. Uber is now Pershing Square's largest holding at 18.5% after Ackman initiated a position in early 2025, citing its profitability and undervalued status, while Alphabet Class A and C shares combined make up the third-largest position despite mixed performance and recent adjustments to the holdings.

Analysis

Pershing Square Capital Management, under Bill Ackman, employs a concentrated investment strategy, with its $11.9 billion portfolio holding only 12 stocks and nearly one-third allocated to Uber Technologies and Alphabet. Uber (UBER) became Pershing Square's largest holding in Q1 2025, representing 18.5% of the portfolio with 30.3 million shares valued at $2.21 billion, following an acquisition initiated in early January 2025. Ackman's rationale included Uber's perceived status as a 'highly profitable and cash-generative growth machine' and an undervalued stock, though its price has since surged, leading to a complex valuation picture: a forward P/E of approximately 32.6 and a high PEG ratio of 14.5 are juxtaposed with conflicting intrinsic value estimates, ranging from an 18% overvaluation according to AlphaSpread's DCF model to a 47% undervaluation by SimplyWallSt. Alphabet (GOOGL, GOOG) constitutes the fund's third-largest position at 14% of the portfolio, an investment initiated in early 2023 amid skepticism about Google Search's future. This investment has reportedly 'paid off nicely' despite Alphabet's 'poor stock performance in 2025'. Pershing Square's Q1 2025 activity included an 11.3% increase in its GOOGL stake and a 16.2% reduction in its GOOG position. While Alphabet faces antitrust uncertainties, its Google Cloud segment shows strong growth potential from generative AI adoption, and its Waymo unit (which has partnered with Uber) also presents opportunities, leading the article's author to view it favorably within Ackman's portfolio, even as other analysts, like The Motley Fool Stock Advisor, have not recently listed it as a top buy.

Key Decisions for Investors

• Investors should critically assess Uber's current valuation, considering its significant price appreciation since early 2025 and the wide divergence in intrinsic value estimates from different analysts, before mirroring Pershing Square's substantial position.
• For Alphabet, investors should weigh the strong growth prospects in Google Cloud and AI, alongside the potential of Waymo, against persistent antitrust risks and recent tactical adjustments by Pershing Square between its Class A and Class C shares.
• Given Pershing Square's highly concentrated approach, any decision to follow these specific large investments should be made with an understanding of the magnified risk and reward profile, and within the context of an investor's own overall portfolio diversification strategy.