Bill Ackman Thinks This Factor Is Even More Important Than Valuation For Long-Term Investments
It's better to buy a wonderful business at a fair price than a fair business at a wonderful price.
Bill Ackman, the head of Pershing Square, believes that valuation is not the most crucial factor for long-term investments. In his recent letter to shareholders, he stated that while valuation should always be considered, strong and sustainable earnings-per-share growth holds even greater importance. Ackman's portfolio consists of stocks that currently trade at valuations that are around the S&P 500 average, or in some cases, much higher than the average.
This approach aligns with the teachings of Ben Graham, the father of value investing, and Warren Buffett, Graham's most notable pupil.
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