Billionaire investor Bill Ackman warned about inflation, discussed bitcoin, and explained why he was staying in New York City in a recent interview. Here are his 12 best quotes.
- Bill Ackman said inflation will not be temporary and the economy is likely to overheat with interest rates this low.
- The hedge fund billionaire also said the cryptocurrency was “fascinating”, but that he was uncomfortable investing in bitcoin.
- Ackman also revealed that his fund recently acquired a 6% stake in Domino’s.
- See more stories on the Insider business page.
Billionaire investor Bill Ackman warned inflation may not be temporary and said the Federal Reserve may have to raise interest rates in an interview on Wednesday with the The Wall Street Journal’s Festival of the Future of Everything. The founder of Pershing Square Capital Management also revealed that his fund recently bought a 6% stake in Domino’s Pizza, pushing shares up to 5.9% on Wednesday.
Here are 12 of Ackman’s best quotes from the interview, slightly edited and condensed for clarity:
1. “We’ve admired it for years, and it was never cheap enough. And then for about five minutes, it got cheap. I don’t know who sold or why, but we started to buy about $ 330 a share, and then very quickly, it increased a lot “, on its decision to buy a 6% stake in Domino’s pizza during the pandemic.
2. “The surprise numbers that came out are not due to a weak economy. The economy is crushing it. Businesses are booming. If you think about hospitality, you can’t get reservations anymore. At New York”, on the jobs report badly missed estimates Last week.
3. “There are a lot of jobs, people haven’t had to work partly because of the stimulus… When unemployment benefits go down and part of the stimulus wears off, there will be more. labor supply. He added that raising wages is good for workers and the economy, because workers will spend money.
4. “They have a great product, great value where they have pricing power. And so they are able to offset the extra costs of paying higher wages by charging a little more for a burrito. charge 50, 60, 70 cents more for the burrito, you can pay your workers more, and that is still very good value for consumers. The key in a world where there is going to be inflation and it is going to have wage inflation is to have a company that sells a product where there is pricing power ”, on Chipotle raising wages. (Ackman’s Pershing Square owns Chipotle shares.)
5. “I think it’s not temporary…. Look at the price of all the commodities, right? Copper, lumber, energy even before the colonial pipeline problem . Look at house prices, look at Bitcoin, right? Moment in history. People come out of a pandemic with the endless spirits that have just been locked up, ” on inflation.
6. “I think they’re going to have to hike rates for sure. And I think they’ve adjusted their policy just at the wrong time. Preventive inflation, I think, is a better approach, especially in a world where we have massively, massive economic recovery “, on the Federal Reserve.
7. “I think that with the rates where they are, there is a very good risk of the economy overheating.”
8. “I think crypto is a fascinating phenomenon. I think it’s brilliant technology and I pity myself that I don’t understand it, it’s one of the best speculations ever … But this is not a place where I would feel comfortable putting personally amount of assets. Therefore, I would not invest the assets of our business. ”
9. “There is no intrinsic value. Intrinsic value for me is driven by cash generation. You have to be able to calculate a discounted cash flow,” explaining why he is not comfortable to invest in bitcoin.
10. “I would be worried if a friend had invested a large chunk of his net worth in one or more cryptocurrencies, I would like him to take the money and put it into something a little more sustainable.”
11. “New York is an extremely good place to live. It’s a big tax burden and when the high income folks do the math and say, well I could move to Florida and buy this amazing house and not the taxes state, it motivates some people, but … One of the advantages of being successful is that you can choose where you live. tax is higher, that seems a bit silly. ” on the migration from New York to Miami and his decision to keep Pershing Square in Manhattan.
12. “I think it’s very, very important who will be the next mayor of New York, and that we actually have a pro-business mayor. The mayor of Miami has done a great job recruiting tech executives. next New York mayor to do the same. ” He added that Raymond McGuire and Andrew Yang are both excellent mayoral candidates.