During his recent interview with Interactive Investor, Bill Ackman explained why this is another great ‘moment’ to buy stocks. Here’s an excerpt from the interview:
Q3 2022 hedge fund letters, conferences and more
Ackman: I think you can do very well as a stock market investor if you find really high quality companies and you buy them at attractive prices, and I think today is a pretty good time.
It’s a pretty good point of entry right. March of ’20 was obviously a very very good entry point and anyone who bought stocks in March of 2020, something I went on TV and advocated on March 18th of 2020 and I said this is a moment.
I think this is sort of another moment where, I don’t know how well you’re going to do over the next three or six months, 12 months, it’s a highly uncertain world, but over the next three, four, five, ten years it’s a pretty good place to be an investor, or time to commit more capital to equity markets.
Although I would… you gotta pick carefully. You want to own the super high quality, well capitalized, dominant businesses that you know will be here 30 years from now, and that’s why we own companies like Hilton and Universal Music and Restaurant Brands.
Host: So what you’re saying whether or not there’s a Q4 correction or whatever that doesn’t really matter, if you’re looking further out a few years, three, four, five years out, now is a good time. You’ll look back on today and think yeah that’s a good time to buy
Ackman: For sure. That doesn’t mean the market’s not going lower in the next three months right, but I wouldn’t commit all of your capital today right, keep some in reserve, a bit of the as they used to call it dollar cost averaging.
S&P is down, approaching 20% for the year, and it wasn’t highly overvalued at the beginning of the year, so I think prices are fair to cheap.
You can watch the entire discussion here:
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Article by The Acquirer’s Multiple.
