Billionaire investor Bill Ackman, the founder of Pershing Square, is betting heavily on tech behemoths Meta Platforms Inc. (NASDAQ:META)and Amazon.com Inc. (NASDAQ:AMZN), identifying both companies as “durable compounders.”
According to Ackman, these dominant players possess the cash flow predictability and resilience required to anchor a highly concentrated, long-term portfolio.
Concentrated Bets on High-Quality Tech
Pershing Square focuses on a select few dominant businesses that can survive the test of time and market disruption.
Ackman, during an interview with Money News Network, said that he keeps his investment portfolio famously tight, typically holding only 12 to 15 investments at a time. Rather than chasing the latest artificial intelligence (AI) startups or attempting to make money quickly through speculative options trading, his approach centers entirely on predictability and longevity.
“Our approach is to find what we believe to be the best businesses in the world,” Ackman explained. “Businesses that will survive the test of time.”
He noted that Pershing Square targets companies where it can earn a “high compound return over the next three, four, five years.” By avoiding what he calls the “new new thing,” Ackman has been able to fill his fund with “very high quality, what we call durable compounders.”
Why Meta and Amazon Are ‘Cheap Stocks’
Despite their massive valuations, Ackman argues that both Meta and Amazon are currently trading at highly attractive prices relative to their unassailable market positions.
For years, Ackman admired companies like Meta, Amazon, and Microsoft Corp. (NASDAQ:MSFT), but stayed on the sidelines because they were simply too expensive. Recently, however, that calculus shifted in his favor.
“If Microsoft and Amazon and Meta are cheap stocks, which we believe they are, you could argue the market’s not expensive at all,” Ackman noted.
When discussing Amazon specifically, Ackman highlighted how deeply embedded the e-commerce giant is in daily consumer life, pointing out its near-monopoly on rapid fulfillment. “I order from Amazon every time I learn about a new book,” he said, comparing it to the highly frustrating experience of shopping at locked-down physical stores in New York City.
“Meanwhile, you go on Amazon and get it delivered in two hours. And who can compete with that, right? So, think about great dominant business where the probability of competition is extremely low.”
How Have AMZN and META Performed In 2026?
AMZN shares were up 8.31% year-to-date, 2.29% over the last month, and higher by 10.55% over the year. It closed 1.12% higher at $249.99 per share on Monday, and it was up 0.22% in overnight trading.
Benzinga’s Edge Stock Rankings indicate that AMZN maintains a weak price trend in the short term but a strong trend in the long and medium terms, with a moderate quality score.
META shares were down 2.16% year-to-date, up 11.89% over the last month, and lower by 8.30% over the year. It closed 0.02% down at $645.85 per share on Monday, and it was 0.21% higher in overnight trading.
Benzinga’s Edge Stock Rankings indicate that META maintains a weak price trend in the long term but a strong trend in the short and medium terms, with a solid growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: bluestork via Shutterstock
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