Bill Ackman refers to himself as a ‘Buffett enthusiast’—and aims for his $28 billion Pershing business to become the ‘contemporary’ Berkshire

Bill Ackman’s Ambitious Pursuit: Building a Modern Berkshire Hathaway

Bill Ackman is known for his bold aspirations, and his latest move—filing to take Pershing Square public—marks a significant step toward his grandest vision yet: establishing a contemporary version of Berkshire Hathaway, inspired by legendary investor Warren Buffett.

Pershing Square’s Renewed IPO Effort

On Tuesday, Pershing Square Capital Management submitted paperwork to list on the New York Stock Exchange. This marks Ackman’s second attempt to take the firm public, following a previous, unsuccessful bid in 2024 to raise $25 billion for what would have been the largest closed-end fund IPO in history.

This time, Ackman has set a more modest fundraising goal, targeting between $5 billion and $10 billion. He’s also restructured the offering: both the closed-end fund and Pershing Square’s parent company will be listed, trading under the tickers PSUS and PS, respectively. To attract investors, every purchase of 100 shares in the closed-end fund will come with 20 complimentary shares of Pershing Square Capital Management. As reported by the Wall Street Journal, the minimum investment is set at $5,000.

Seeking Lasting Capital and U.S. Investors

Ackman’s strategy is to secure “permanent capital,” much like Buffett did with Berkshire, by appealing to investors—including those drawn by his outspoken and sometimes controversial presence on X, where he has two million followers. While Pershing Square already maintains a dual listing in Europe, a U.S. listing would provide greater access to American investors with significant capital.

For Ackman, this move is a way to emulate his unofficial mentor, Warren Buffett.

“I’ve been a kind of Warren Buffett devotee, unofficial—he’s been my unofficial mentor for many years,” Ackman said in 2023.

Adopting Buffett’s Investment Model

Unlike traditional hedge funds, which allow investors to withdraw funds quarterly or annually—forcing managers to keep cash reserves and potentially sell assets—Pershing Square’s dual listing would provide access to capital that cannot be withdrawn directly. Instead, investors would need to sell their shares on the open market.

This approach mirrors Buffett’s playbook. Permanent capital, as perfected by Buffett at Berkshire Hathaway, is not subject to redemption, allowing for a long-term investment horizon and uninterrupted compounding. The idea is simple: raise capital once, invest for the long haul, and let time work its magic.

Buffett didn’t found Berkshire Hathaway—he acquired it in the 1960s when it was a struggling textile business. Using the concept of permanent capital, he transformed it into a powerhouse conglomerate that now owns Geico, Dairy Queen, and BNSF Railway, making it the world’s most valuable financial institution with a market capitalization of $1 trillion.

Long-Term Advantage Over Short-Term Competitors

During a 2023 CNBC conference, Ackman explained that access to permanent capital enables a long-term perspective, unlike most investment managers who must make short-term decisions due to the risk of investor withdrawals.

In his letter to investors, as reported by the Wall Street Journal, Ackman emphasized that Pershing’s IPO will provide a significant edge over hedge funds focused on short-term gains. He wrote, “Competing against investment managers with short-term capital is an important long-term, sustainable competitive advantage for Pershing Square, particularly in a world where a seemingly ever-increasing proportion of capital is managed with shorter-term investment objectives.”

Previous Attempts to Build a Berkshire Successor

Ackman has previously tried to create his own version of Berkshire Hathaway by investing in Howard Hughes Holdings (HHH). In a post on X last year, he described the deal as “a modern-day version of Berkshire.”

The outcome of this investment remains uncertain. After Howard Hughes’ board rejected his initial offer, Pershing Square invested $900 million in new shares in May, securing a controlling stake and appointing Ackman as executive chairman. However, some HHH shareholders have since filed a lawsuit, claiming the deal was made at an “unfair price,” according to Bloomberg.

Ackman’s Journey and Buffett’s Influence

From early on, Ackman set his sights high. He graduated magna cum laude from Harvard in 1988, then earned his MBA from Harvard Business School. Shortly after, he co-founded his first hedge fund with a fellow Harvard alumnus, starting with just $3 million. The fund achieved some success before collapsing in the early 2000s.

Undeterred, Ackman went on to establish Pershing Square, growing an initial $54 million investment into a firm now managing $28 billion in assets.

Ackman has often credited Buffett as a major source of inspiration. Speaking at a CNBC conference in 2023, he highlighted the parallels between their careers, noting that before Buffett turned a struggling textile company into the $1 trillion Berkshire Hathaway, he was essentially an activist investor, managing a series of private partnerships—much like Ackman himself.

In fact, Ackman shared in a post last year that reading one of Buffett’s well-known annual shareholder letters inspired him to pursue a career in investing.

Reflecting on his early ambitions, Ackman wrote, “When I launched my first hedge fund at 26, I hoped that one day I could build a diversified holding company like Berkshire, with an exceptional long-term track record.”

This article was originally published on Fortune.com