Bill Ackman, founder of Pershing Square, stated that he does not perceive a bubble in the current US stock market. He attributes recent market volatility to excessive leverage, short-term trading, and the use of one-day options. Ackman described the current environment as a casino-style market, noting that high leverage levels are negatively impacting the broader economy.
Despite the volatility, Pershing Square utilizes these price swings to acquire stocks at lower valuations. The firm recently added positions in Visa, Mastercard, and Netflix during the second quarter of 2026. Additionally, the fund began building an eighth new position following the third quarter. Pershing Square anticipates its holdings will achieve earnings growth of approximately 20% annually over the next three to five years.
Ackman dismissed comparisons between the current market and the 1920s, citing strong profit forecasts and reasonable stock valuations relative to growth. He noted that while private startup funding exhibits more bubble-like characteristics, he believes companies like Ramp, valued at $44 billion in June, justify their valuations. The firm's next 13F report, detailing holdings as of September 30, is expected by mid-November.
