Investors follow hedge fund managers because billionaires who manage funds for other wealthy people are an obvious source of investment inspiration.
Renowned billionaire Bill Ackman heads Pershing Square Capital, which manages $18.6 billion in assets.he is a big fan Chipotle Mexican Grill (NYSE:CMG)It’s not difficult to understand why. Chipotle is an easy stock to own because it regularly grows sales and profits, and it has generated incredible shareholder wealth. Check out how much money he invested in Burrito King.
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Pershing Square only owns 10 shares, but there are times when it owns fewer shares. Mr. Ackman invests most of the fund’s money in consumer free stocks. Chipotle has the second largest stake in the company after another restaurant company. restaurant brand international. The company owns approximately 825,000 shares of Chipotle Mexican Grill, a position that represents nearly 13% of the company’s total portfolio. It also accounts for almost 3% of the outstanding shares. But previously it was the fund’s largest position. Mr. Ackman sold approximately 130,000 shares in the fourth quarter of 2024. He also sold his shares at other times.
The fund first bought Chipotle stock sometime in the third quarter of 2016, and the stock has risen about 660% since then. However, that success wasn’t always a given. Mr. Ackman’s position is a testament to the power of long-term investing. Chipotle stock was in the doldrums when Pershing Square acquired the company. It decreased by 21% in 2016 and 23% in 2017.
Ackman is confident in the turnaround, and the company hired CEO Brian Nicol in 2018. Chipotle has become one of the best-performing restaurant chains and stocks. The first quarter of 2024 was also strong, with sales up 14% year over year and earnings per share of $13.09, up 24% year over year. Pershing Square held up, and its position was worth about $2.7 billion as of Thursday’s close.
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Jennifer Cybill has no position in any stocks mentioned. The Motley Fool has a position on Chipotle Mexican Grill and recommends Chipotle Mexican Grill. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.
How much did Bill Ackman invest in Chipotle Mexican Grill Stock? Originally published by The Motley Fool
