Billionaire Bill Ackman Recently Bought One of My Favorite Stocks. Here's Why I Think It Was a Brilliant Move.

Core Investment Strategy - Bill Ackman employs a concentrated investment style, typically holding 10 or fewer stocks and making significant bets on favored companies [2][3] - Ackman has significantly increased his stake in Brookfield, now holding 22 million shares valued at over $1.7 billion, representing about 13$1 trillion in assets under management [3] Leadership and Performance - CEO Bruce Flatt is recognized for his value investing approach and has been with Brookfield since 1990, leading to annualized total returns of 16% over the past 20 years, outperforming the S&P 500 and Berkshire Hathaway [5][6] Growth Potential - Brookfield aims for annualized returns of 15% or more in the long term, with management estimating the stock should trade at around $84 per share, significantly above its current price of less than$60 [6][7] - The company anticipates over 20% annual growth in earnings per share over the next five years, expecting to generate $47 billion in free cash flow, or$30 per share, during this period [8][9] Future Valuation - Brookfield projects an increase in its underlying value to $176 per share by 2029, indicating an annualized growth rate of 16% from its current estimated value [9]