Bill Ackman Builds $2.3 Billion Stake in Microsoft, Bets on Tech Sector
Pershing Square founder Bill Ackman has significantly increased his stake in Microsoft to over 6.2 million shares, valued at approximately $2.3 billion as of June 2024. The move reflects a broader strategy by the firm to focus heavily on technology stocks, with four major tech names accounting for nearly half of its portfolio last year. Ackman cited strong performance from semiconductor and IT hardware sectors in the S&P 500 this year as justification. Ackman emphasized his investment philosophy centered around simplicity, predictability, free cash flow generation, competitive advantage, low leverage, and strong management — qualities he believes are present in leading tech firms like Microsoft. He also highlighted ongoing momentum from AI advancements and growing demand for technology solutions across industries. The firm is expected to maintain its focus on the sector unless there's a major market disruption. Pershing Square has reallocated capital by selling Alphabet shares to increase exposure to Microsoft, signaling confidence in the company’s long-term potential.
