In practice though, manager Bill Ackman has driven exceptional gains through this high-conviction strategy. Last year, Pershing Square delivered a total shareholder return of 33.9%.

That was significantly higher than both the S&P 500 (17.9%) and FTSE 100 (25.7%). And since Ackman restructured the fund, the eight-year annualised return has been 23% versus the S&P 500’s 14.3%.

The Pershing Square share price is up nearly 300% since IPO in 2017.

Putting money to work

As mentioned, Ackman isn’t a fan of broad diversification. As of early 2026, his top five holdings made up around 73% of the entire portfolio. 

These are global businesses with deep moats and strong brands like Amazon, Uber, Alphabet, and hotel group Hilton Worldwide.

Clearly, given Ackman’s track record, it’s worth keeping an eye on what he’s buying. And back in November, he said Pershing was “seeing some very high-quality businesses showing up at very attractive prices“. He was ready to put “some money to work“.

At the time, I speculated that Ackman might buy Meta Platforms (NASDAQ:META). The billionaire likes to snap up shares when they’re out of favour and Meta was down 20% since August. Moreover, it was the cheapest Magnificent Seven stock. 

Last week, Pershing revealed it had indeed bought Meta stock. In Q4, it acquired $1.76bn worth of shares, making the social media giant a chunky 11.37% portfolio position.

Should I follow Ackman and invest too?

Superintelligence push

Meta’s platforms need no introduction. Facebook, Instagram and WhatsApp are woven into the daily reality of many people worldwide. At the end of 2025, the figure was 3.58bn users.

When you’re operating at such a scale, the advertising opportunity is immense. In Q4, ad impressions delivered across its apps jumped by 18%, with the average price per ad rising by 6%.

This helped drive $201bn in revenue in 2025, a 22% year-on-year increase. The operating margin was 41%, which shows how profitable Meta is.

However, while recognising the obvious quality of the business, I do have some concerns. First, CEO Mark Zuckerberg is going all out to advance “personal superintelligence for people around the world“.

This will see Meta spend up to $135bn on AI in 2026 — significantly more than the firm’s free cash flow last year ($43.6bn).

Writing this, I’m getting flashbacks to 2021/22 when Meta went all in on the metaverse, even changing the company name to reflect that move. But this Reality Labs venture has been a cash-incinerating flop so far, and I fear AI might not justify this extreme spending.

Another issue is the growing move by governments to ban social media for under 16s, including possibly in the UK. This might see Facebook and Instagram lose relevance among younger generations.

Deep discount

Ackman disagrees, however. He said: “We believe Meta’s current share price underappreciates the company’s long-term upside potential from AI and represents a deeply discounted valuation“.

He may prove right, but I’m not buying. I prefer Pershing Square itself,as it’s trading at a 23% discount to its net asset value.

I think the FTSE 100 trust is worth considering for investors who believe in Ackman’s high-conviction strategy.

The post Bill Ackman just loaded up on this S&P 500 stock in his FTSE 100-listed fund appeared first on The Motley Fool UK.

With this in mind, here are two trusts that I think should be on investors’ radars in 2026.

Buying the fear

The first is Pershing Square (LSE:PSH) from the FTSE 100. At first glance, this might seem like a fish out of water as it’s linked to Bill Ackman’s New York-based hedge fund.

But UK shareholders (myself included) are grateful for the chance to own a small stake. Because Pershing Square’s share price is up more than 20% this year. And over five years, it’s roughly doubled.

Ackman’s strategy is to invest in established companies facing challenges he believes are exaggerated or temporary. For example, he invested in Chipotle Mexican Grill in 2016 following food poisoning incidents.

In early 2023, he loaded up on Alphabet when the market feared ChatGPT would destroy Google. Then at the start of this year, Pershing Square took a big position in Uber while investors fretted about robotaxis potentially disrupting the firm’s business model.

Ackman has made solid returns from these investments (Alphabet stock’s more than tripled since early 2023). In essence, what he’s doing is buying when fear surrounds high-quality businesses, as Warren Buffett has famously done successfully for decades.

This strategy’s seen Ackman consistently outperform the S&P 500 over the long term. However, it should be noted that the Pershing Square portfolio is very concentrated (just 10-12 stocks). If a couple of his best ideas bomb, then the trust would likely underperform.

Looking to 2026 and beyond though, I’m optimistic that Pershing Square will keep chugging higher. The portfolio holds some extremely high-quality companies (including Amazon now and asset manager Brookfield).

Plus, Ackman says he’s currently eyeing up a couple of interesting opportunities. I wouldn’t bet against him unearthing another gem (lots of quality software stocks are currently cheap, for example, due to AI disruption fears).

With this FTSE 100 trust currently trading at a significant discount, I think it’s worth examining more closely.

A focus on UK quality

Turning to UK-listed shares now, we have Baillie Gifford UK Growth Trust (LSE:BGUK). I like this one for 2026 because its portfolio contains some really high-quality growth companies.

In the six months to 31 October, these helped the trust achieve a total return of 17.7%, beating the FTSE All-Share Index (16%). Top holding, Games Workshop, helped drive this performance.

However, I see quite a few high-quality names in the portfolio that have underperformed the market in 2025. These include credit report firm Experian, data analytics giant RELX, Rightmove, and Auto Trader.

Many digital platforms have struggled as investors worry about the implications of AI, but I suspect these will do better next year. I think investors are underestimating the durability of their data-driven business models.

Elsewhere in the portfolio, we see Guinness owner Diageo and cross-border payments firm Wise. Both these stocks now look good value.

Of course, a refocus on quality stocks might not happen, leaving these holdings out of favour. But with the portfolio valuation low, a 2.75% dividend on offer, and a near-10% discount to NAV, I reckon this one is also worth thinking about.

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Here, I’m going to highlight three investment trusts that have delivered incredible returns for investors over the long run and can be held inside ISA accounts. I believe all three are worth considering today as part of a diversified portfolio.

Run by a top stock picker

First up, we have Pershing Square Holdings (LSE: PSH). This is run by billionaire Bill Ackman, who is widely regarded as one of the world’s top stock pickers.

Ackman takes a value/quality approach to investing. Stocks in the fund at the moment include the likes of Amazon (which is trading at a historically low valuation), Uber (which is seeing huge free cash flow growth) and Alphabet (one of the cheapest Magnificent 7 stocks).

This approach works for him. Over the last five years, the trust’s share price has risen about 110% versus 50% for the FTSE 100.

There are no guarantees that this trust will continue to outperform, of course. Ackman runs a very concentrated portfolio and therefore if a few of his stocks underperform, overall returns could be disappointing.

His long-term track record is pretty good though. So, this trust could be worth a closer look.

Aiming to maximise returns

Next, we have Scottish Mortgage (LSE: SMT). This is a growth-focused product run by Scottish investment management firm Baillie Gifford.

This trust’s aim is to maximise total returns over the long term. Its strategy here is to invest in exceptional public and private growth companies.

It also has a strong focus on growth themes. Some examples of themes it’s currently focused on include enablers of AI, healthcare innovation, evolution of transport, and the digitalisation of finance.

This growth focus can lead to poor returns at times. For example, in 2022 (when interest rates rose and growth stocks tanked) the trust performed very badly (meaning five-year returns look weak).

Taking a long-term view, however, performance has been excellent. Over the last 10 years, for instance, the share price is up about 275%, more than twice the return of the Footsie.

A trust for the tech boom

Finally, we have the Allianz Technology Trust (LSE: ATT). This is a tech-focused product that’s managed by the AllianzGI Global Technology team, which is based near Silicon Valley where many of the world’s top tech companies are located.

In my view, this trust is an ideal way to gain exposure to the tech boom we’re currently experiencing. With stocks like Nvidia, Broadcom, and Alphabet in the portfolio, it offers access to industries such as chips, cloud computing, and generative AI.

Investors should note, however, that the sole focus on technology increases risk. Unlike the other two products I’ve mentioned, there’s very little sector diversification here.

Over the long term, performance here has been good. For example, over the five-year period to the end of October, the share price rose 117%.

There are no guarantees that performance will continue to be strong, of course. If the tech sector continues to shine, however, this trust should provide attractive returns.

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These are benefitting

The FTSE 100 investment trusts alluded to are Pershing Square Holdings (LSE:PSH) and Scottish Mortgage Investment Trust (LSE:SMT). Both have Amazon as one of their top holdings.

To be fair, that wouldn’t be hard for Pershing Square, which gives everyday investors access to Bill Ackman’s hedge fund portfolio. By default, any stock that makes the cut is a large position because it rarely holds more than 12.

Ackman bought 6,324,031 Amazon shares in Q2 this year. So this position, which was worth more than $1.2bn at the time, is getting a nice bump today. He also loaded up on Alphabet in early 2023 (up nearly 200% since).

As for Scottish Mortgage, it first invested in Amazon back in 2005. And even though it has sold off shares periodically since, including in the last 12 months, the tech behemoth founded by Jeff Bezos is still a top-five holding.

Very strong quarter

Scottish Mortgage says investors “underappreciate…how long Amazon’s growth could endure, with multiple growth opportunities in AI, advertising, original content, and grocery delivery still in their early days“.

In Q3, we saw evidence of this. Sales in North America increased 11% year on year to $106.3bn, while international sales rose 14% to $40.9bn. Within these segments, advertising revenue surged 24% to $17.7bn, becoming a bigger piece of the pie. 

The standout performer though was AWS, its cloud computing division, where sales jumped 20% to $33bn.This was AWS’s fastest quarterly growth since 2022, topping analyst estimates for about 18%.

CEO Andy Jassy said it continues to enjoy “strong demand in AI and core infrastructure”. As such, Amazon expects to spend a whopping $125bn on capital expenditures this year, up from a previous estimate of $118bn.

Looking ahead, a recession would be a challenge for Amazon’s retail operation, while competition from Google Cloud and Microsoft Azure isn’t going away for AWS.

All told though, this was a very impressive quarter from a world-class company. With tonnes of optionality across e-commerce, cloud services, AI, advertising, and a new satellite internet business, Amazon has many ways to keep winning.

I think the stock is still worth considering, even at an all-time high.

Back to the trusts

What about Scottish Mortgage and Pershing Square? Well, there’s more to these trusts than just Amazon, of course. And that adds risk as well as opportunity.

For example, in Q2, Pershing Square also had 8.8% of its portfolio in Chipotle Mexican Grill. And this restaurant stock has cratered 23% this week after posting poor Q3 sales.

Meanwhile, Scottish Mortgage has a large holding in Meta Platforms, which has also fallen this week. So other stocks in their portfolios might always drag on overall performance

On top of this, investment trusts can trade at a discount to their net asset value. Pershing Square’s discount is 26%, while Scottish Mortgage’s is 10.5% (both could widen during market sell-offs).

Still, I’m inclined to see both trusts trading at a double-digit discount as more of an opportunity to consider buying them. Both have excellent stock-picking track records, as Amazon is proving today.

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Essentially then, an investor can buy £1 worth of investments for, say, 90p. If that gap later closes, this can boost returns. Of course, it can also widen, so there’s risk as well as opportunity. In other words, no free lunch!

Here are three investment trusts trading at a discount that I think are worth a closer look today.

Asia growth

First up, we have Pacific Horizon Investment Trust (LSE:PHI) from the FTSE 250. This one aims to achieve capital growth through Asian stocks (excluding Japan).

Top holdings include Taiwan Semiconductor (TSMC), Samsung Electronics, Tencent, ByteDance, and Sea Limited. These companies provide exposure to plenty of era-defining trends, including semiconductors, artificial intelligence (AI), e-commerce, cloud computing, fintech, and the energy transition through miners Zijin Mining and MMG.

Long-term performance has been excellent. The trust has returned 368% over the past 10 years, versus just 163% for its benchmark (the MSCI All Country Asia ex Japan Index).

I mention the long term because I think that’s the best time horizon with this trust. But in the near term, there could be some turbulence from tariffs, negatively impacting the performance of some holdings.

Over the next two decades though, the Asia Pacific region is expected to drive most global growth, supported by favourable demographics and the unstoppable rise of its global middle class.

Right now, investors can pick up shares of Pacific Horizon for 760p, which represents a 9.5% discount to NAV.

Asia income

Sticking with this theme, we have Schroeder Oriental Income Fund (LSE:SOI). Despite a share price rise of 20% this year, there’s still a 4.6% discount to NAV.

As the name implies, this one focuses on income rather than out-and-out growth. Therefore, the holdings are from more mature industries such as banks (Oversea-Chinese Banking Corp and DBS Group) and telecommunications (Singapore Telecommunications and Australia’s Telstra).

The same risk applies here, with President Trump’s tariffs on Asian imported goods causing massive uncertainty. But I think the same rewards apply, with the added potential bonus of a rising income stream.

Indeed, the FTSE 250 trust has grown its payout every year since launch in 2005. The dividend yield currently starts at a respectable 3.65%.

Asian companies are increasingly world-leading and returning cash to shareholders. The Schroder Oriental Income Fund aims to tap into the Asian income story.

Schroder Oriental Income Fund.

Top hedge fund

Finally, turning to the FTSE 100, I want to highlight Pershing Square Holdings (LSE:PSH). This trust gives exposure to the hedge fund strategies of billionaire Bill Ackman.

Now in this case, I think some level of discount might be justified. That’s because Pershing manages a highly concentrated portfolio of 10-12 stocks. Arguably, this is a conviction bet on Ackman’s skill.

However, the 27.4% discount looks excessive, especially as Ackman appears to have lost none of his stock-picking skill. For example, Alphabet‘s up around 150% since Pershing started loading up in Q1 2023. Uber‘s also flying (+35% since early February when Ackman announced a position).

For investors interested in a top-performing hedge fund, I think the stock’s worth digging into.

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Here, I’m going to highlight two global investment trusts I reckon will beat the Footsie quite comfortably over the next half decade. Both have exceptional long-term performance track records and I think they warrant consideration today.

Focusing on exceptional growth companies

First up, we have Scottish Mortgage Investment Trust (LSE: SMT). Popular with those who are looking to beat the market, it’s focused on ‘exceptional’ growth companies in areas such as artificial intelligence (AI), cloud computing, healthcare innovation, and FinTech.

This trust invests in some brilliant publicly-listed companies. For example, within the 10 holdings we have names like Amazon, Nvidia, and Taiwan Semi.

It’s also invested in quite a few world-class unlisted companies. Names here include the likes of SpaceX, ByteDance, and Databricks.

Given this mix of holdings, I expect the trust to do well in the years ahead. As the technology revolution unfolds and the world becomes more digital, a lot of Scottish Mortgage’s holdings could prosper.

It’s worth pointing out that this trust can be volatile at times due to its tech focus. In 2022, for example, it underperformed the FTSE 100 significantly.

I’m optimistic about the long-term potential though. Over the last 10 years, the trust’s returned about 16% a year, although past performance isn’t an indicator of future returns.

One of the world’s top stock pickers

The other investment trust I want to highlight is Pershing Square Holdings (LSE: PSH). This is managed by hedge fund specialist Bill Ackman, who’s widely regarded as one of the world’s great stock pickers.

I really like Ackman’s investment approach. Generally speaking, he invests in high-quality growth businesses when he believes the market’s ignoring their potential so there are elements of value investing, growth investing, and quality investing here.

Typically, he only holds around 10-15 stocks at one time (so it’s a concentrated fund). Some examples of stocks in the portfolio today include Amazon, Alphabet, Uber, and Hilton.

Now, this approach has worked well for Ackman (and his investors) over the years. In the last 10 years, the fund’s returned about 10% a year when dividends are included – well ahead of the returns from the FTSE 100.

Of course, the concentrated nature of the fund means there are risks for investors – if Ackman picks the wrong stocks, performance could be disappointing. All things considered though, I see a lot of potential and believe it’s worth a closer look, especially while it’s trading at a significant discount to its net asset value (NAV).

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Even those on non-superstar wages can use the multiplying effect (and tax benefits!) of ISAs to hit the seven-figure mark with run-of-the-mill saving and investing. Here’s how. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Hands-off investing

Those getting started may wish to buy index funds or investment funds such as FTSE 100 fund Pershing Square Management (LSE: PSH). I highlight billionaire Bill Ackman’s fund here because it is a stock I own myself. It also exemplifies some of the qualities newbie investors might prize. 

For one, it’s hands off. The decisions on what to buy and when to sell are passed to Bill Ackman and his team. For two, it offers diversification. The fund holds 15 stocks, which as a group will be a lot less volatile than a single stock. The third and most important piece of the puzzle is that it might give an edge on average market returns. 

Stocks like Uber, Nike, and Amazon make up a big chunk of the portfolio. If car rides, shoes, and online shopping have a good few years, then I might too. As long as Ackman and Co choose stocks shrewdly, then I hope to achieve an 11% or 12% return as a yearly average. 

A downside of a specialised fund is that there is a chance it will underperform the average too. This is in contrast to an index fund that tracks the whole market, which will perform like the market.

Nuts and bolts

So, where does this million pounds come from? 

The wealth creation in this process is very simple really. Savings go into the ISA; compound interest does the rest. 

Let’s say we’re calculating over a typical 30-year investing timeline. If our ISA returns an 11% average a year, then investing £400 a month will take us to the million mark. If the stocks in this account manage 12% instead, then £328 is the needed monthly savings rate. 

This isn’t an action plan to be followed to the letter. The nuts and bolts of investing over such long periods mean that these calculations are just to show what’s possible. And the next three decades will almost certainly bring recessions, economic crashes, black swan events, plagues, and other shocks to the system that might endanger the whole plan altogether. Still, for a British saver looking to make the best use of their money, I think this is a great option to consider.

The post How much is needed to build a £1m Stocks and Shares ISA? appeared first on The Motley Fool UK.

Here, I want to highlight two that are unique. I think both could be candidates to research for inclusion in an ISA.

Private companies

The first is Schiehallion Fund (LSE: MNTN), run by asset management giant Baillie Gifford.

As well as having a funny name (after a Scottish mountain), the differentiating factor here is that the trust invests only in private growth companies. Then it holds onto them when they go public (most other funds like this exit their positions upon IPO).

The aim of doing this is to capture the full life cycle of growth companies, from late-stage private to (hopefully) public juggernaut.

The late-stage bit’s worth highlighting, as Schiehallion isn’t investing in basement start-ups. These are companies with established products/services and already generating revenue.

A quick glance at the top 10 holdings shows this to be the case. Rocket pioneer SpaceX is valued at $350bn while analytics firm Databricks’ latest funding round puts it at a $100bn valuation.

Stripe’s current valuation is $91.5bn and TikTok owner ByteDance is even higher (around $350bn). Schiehallion offers investors exposure to these types of game-changing unlisted firms.

Top 10 holdings (as of 31 July 2025)

There are risks with this strategy, of course. One of its larger holdings, Swedish EV battery maker Northvolt, recently went bust. And another, writing assistant software firm Grammarly looks like it could face disruption from generative artificial intelligence (AI).

It’s worth mentioning that the shares trade in US dollars, meaning investors are exposed to some foreign-exchange risk. However overall, I’m bullish on this trust long term. The shares, which are priced at $1.25 each, are trading at a 16% discount to the calculated net asset value (NAV).

Hedge fund

The second trust is Pershing Square Holdings (LSE: PSH), which is a member of the FTSE 100. Pershing’s run by outspoken hedge fund manager Bill Ackman, who has a tremendous long-term record of outperformance.

The share price is up 117% in five years, before dividends.

Ackman’s been busy this year, adding both Uber and Amazon to the portfolio. The good news for Pershing shareholders is that these top-tier tech firms were picked up for a much lower price than the current level. Amazon, for example, was acquired in April when it was trading at its cheapest valuation ever.

Now, the main risk here is that the portfolio’s extremely concentrated, with just 11 stocks. In fact, Amazon, Uber and asset manager Brookfield alone make up nearly half the portfolio!

This can turbocharge returns when things go well, but it can magnify losses when stock picks go wrong. And while extremely talented, Ackman is only human and makes mistakes, like all investors.

However, the shares are trading at a whopping 30% discount to NAV. And with market volatility likely to increase later this year when the full global impact of tariffs is felt, I think Ackman will have opportunities to exploit.

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However, this concentrated strategy has served Pershing Square shareholders very well. The stock has returned around 120% over the past five years, excluding dividends.

Big bold move

Regulatory filings showed that Ackman initiated a brand new position in the first quarter. The stock he bought was Uber Technologies (NYSE: UBER), the ridesharing and food delivery giant.

Pershing Square snapped up 30.3m shares in the period, making Uber its top holding, worth over $2.2bn.

However, the stock has jumped roughly 23% since the end of March. Assuming Pershing hasn’t sold some shares, which I doubt given the recent purchase and Ackman’s long-term investing philosophy, then Uber would now be worth over 20% of invested assets.

Why is Ackman so bullish?

I think there are number of reasons why Uber looks like an attractive investment over the long run. The first relates to the company’s markedly improved profitability and management under CEO Dara Khosrowshahi.

As Ackman pointed out earlier this year: “Since he joined the company in 2017, Dara Khosrowshahi has done a superb job in transforming the company into a highly profitable and cash-generative growth machine.”

Uber has indeed come a long way since its cash-incinerating years. It has moved from a loss in 2022 to forecast earnings per share of $2.93 this year. Wall Street expects that figure to double by 2030.

Another thing that’s likely to have attracted Ackman is Uber’s push into adjacent markets. These include train and plane ticket bookings, advertisements, and a subscription service. Uber Ads has already surpassed a $1.5bn annual run rate, while Uber One has reached over 30m paying subscribers.

Membership drives multiple long-term benefits to Uber. They spend more and they are more likely to try new services that we introduce. It’s our highest long-term ROI [return on investment] lever by far. 

Dara Khosrowshahi

I should disclose that I’m an Uber shareholder. And as an Uber One member too, I can’t remember the last time I used a rival taxi or food delivery firm (Just Eat, Deliveroo, etc). Many moons ago.

The elephant in the room here, though, is the rise of robotaxis, particularly those being trialled by Tesla. If these work safely, then the EV giant could steal market share from Uber. This is a key risk worth monitoring.

However, Ackman and Uber believe that autonomous vehicles (AVs) will not be a winner-takes-all market. And that AV makers will choose to partner with Uber to tap into its massive base of 170m monthly active users.

I think Uber stock is worth considering today.

Pershing itself

What about Pershing Square? Is that also worth looking at? I believe it is (I’m a shareholder here too).

Beyond Uber, it holds high-quality stocks like Hilton Worldwide, Amazon, and investment firm Brookfield. Of course, the highly concentrated portfolio adds risk because a couple of underperformers can seriously drag on returns.

Looking ahead, it seems likely that tariff uncertainty will weigh on global trade and growth, potentially sparking market volatility. However, it’s in such situations that Ackman often makes his best investments.

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The trust typically mirrors the core holdings of Pershing Square’s private hedge fund, which is managed by star stock-picker Bill Ackman.

He has a tremendous track record of beating the market over the past two decades. This is why a lot of investors track the moves made by Ackman and his team.

A new addition

During a recent Q1 earnings call, Pershing Square’s management revealed that it had opened a position in Amazon (NASDAQ: AMZN).

It did so when President Trump’s early-April tariffs announcement sent the stock market into a tailspin. Amazon didn’t escape the chaos, with its shares dropping 31% between February and April.

Pershing Square’s chief investment officer Ryan Israel said: “We started buying our [Amazon] shares at about 24.5 times earnings, which was the lowest multiple that we’ve seen ever since we followed the company in its history. And so we thought this was a uniquely attractive time.”

This was something that struck me at the time too. On 14 April, I wrote: “Based on 2026 forecasts, [Amazon] stock is trading at 23.8 times forward earnings. It has rarely been so cheap. I think the rewards far outweigh the risks for long-term investors.”

The stock is a classic Ackman buy. He has long admired Amazon, but hasn’t seen what he and his team considered an attractive enough valuation to invest. Then the opportunity came along in April when the stock lost nearly a third of its value in two months due to tariff fears.

Israel added: “We did not judge that tariffs would have a material impact on the retail business.”

Margin expansion play

Of course, most readers will be very familiar with the retail business. Millions of people in the UK are Amazon Prime members, allowing them to get lightning-speed deliveries.

However, the company also has its cloud business AWS (Amazon Web Services). This platform provides on-demand access to computing power, storage and a wide range of internet/AI services.

To give one of many examples, Netflix relies heavily on AWS to deliver high-quality content, despite being a direct rival to Prime Video. 

AWS commands around 30% of the global cloud infrastructure services market. Consequently, Pershing Square called it “the 800-pound gorilla” in this space.

Looking ahead, the trust thinks that Amazon CEO Andy Jassy will continue making the business more efficient. This “will allow for more profit margin expansion at a high rate of revenue growth.”

My takeaway

To me, the biggest risk here remains tariffs. If they cause a spike in inflation and/or a recession, then growth could slow in both Amazon’s retail and cloud businesses. In turn, this could negatively impact the value of Pershing Square’s highly-concentrated portfolio.

Over a longer time frame though, I’m very bullish on the stock. Less than 20% of global IT workloads today are estimated to be in the cloud. That may eventually rise to as much as 80%, creating a massive growth opportunity for Amazon.

I think the stock’s worth a look at $200. Alternatively, investors might want to consider Pershing Square shares at 3,842p.

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