Billionaire hedge fund manager Bill Ackman thinks quality stocks are still cheap even though the market recently printed fresh all-time highs.
In a new CNBC interview, the founder and CEO of Pershing Square Capital Management says his firm recently raised $5 billion and is actively deploying that capital, with about 35% already deployed.
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“Interestingly, despite the overall market move, I think stocks – the companies we like – are still pretty cheap. When people compare market multiples, today we’re maybe something in the low 20s, 20-21 times earnings, something like this. And while the market averages 16-17 times in history, the average company of 20 years ago is very different than the average company of today.
These are market-cap weighted indices. It used to be really big companies couldn’t grow very quickly. Now the biggest companies are among the fastest-growing high-quality businesses in the world, so the mix of
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