Getting investing ideas and inspiration from the most successful money managers on Wall Street isn't a bad approach, but you should still do your due diligence before pressing the buy button. Let's apply that strategy by looking at Pershing Square Capital Management, a hedge fund led by the billionaire Bill Ackman.
A sizable percentage -- 41.6%, to be exact -- of the hedge fund's portfolio is in three companies: Alphabet (GOOG 2.30%) (GOOGL 2.70%), Uber Technologies (UBER -1.70%), and Chipotle Mexican Grill (CMG 1.42%). Should you consider following Ackman's lead with these stocks? In my view, the answer is a resounding yes for all three.
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Alphabet -- 14% of portfolio
About 14% of Ackman's portfolio is invested in Alphabet, including more than 5.7% in the class A shares that grant its holders voting rights, and nearly 8.3% in the non-voting class C shares. Alphabet was not a great stock to hold in the first half of the year. Even considering market volatility, shares underperformed the broader market by a significant margin.
However, this isn't because the company's financial results aren't strong. It's more likely that the market is pricing in several specific risks Alphabet faces, including the possibility that U.S. regulators will succeed in forcing it to get rid of its Chrome web browser following an antitrust lawsuit.
Still, there are good reasons to be optimistic about Alphabet's future, particularly when you consider its cloud computing and artificial intelligence (AI) businesses. According to Amazon CEO Andy Jassy, both industries are still in their early innings. Alphabet is a leader in both, and should benefit as these markets embark on a journey of significant long-term growth.
The company can also rely on its streaming ambitions with YouTube, one of the most popular platforms around. Furthermore, Alphabet benefits from a wide moat thanks to network effects and switching costs. Even with the antitrust threat, the company looks attractive once we focus on its growth opportunities and consistent earnings and cash flow.
If you're a long-term investor, I think you should seriously consider adding the stock to your portfolio.
Uber Technologies -- 18.5% of portfolio
As of the first quarter, Uber Technologies was Pershing Square Capital Management's largest holding. In fact, the fund opened its position in the ride-hailing specialist during the period, acquiring some 30.3 million shares of the company.
Now is as good a time as any to get on the Uber bandwagon. Over the past couple of years, it has evolved into a profitable company that also generates substantial cash flow. In the first quarter, Uber's revenue grew by a solid 14% year over year to $11.5 billion. Net income was $1.8 billion compared to a net loss of $654 million in the year-ago period, while free cash flow soared by 66% year over year to $2.3 billion.
More important than its recent results, though, are Uber's still-strong prospects, thanks in part to its platform's network effect. More drivers within its ecosystem make it more attractive to clients. Uber may have competition for its services, but its trips and gross bookings far exceed those of its biggest direct challenger, Lyft. That says something about the company's competitive edge.
Uber has substantial long-term prospects. One reason is that younger generations are driving less, which will, over the long run, create a greater need for the kinds of services the company offers. While Uber's stock has performed well this year, it's not too late to get in on the act yet.
Chipotle Mexican Grill -- 9.1% of portfolio
Chipotle comes in at roughly 9% of Pershing Square Capital Management's portfolio. Here's another company that has not performed well in 2025, partly because of the potential impact of tariffs on its financial results. Chipotle imports ingredients for its famous bowls from various places around the world, and President Donald Trump's trade agenda could lead to cost increases for the restaurant chain.
Even beyond that, Chipotle's first-quarter results were not a hit due to weak foot traffic within its stores.
Do these issues justify giving up on the stock? My view is that they don't. Chipotle is a consistently profitable business with strong restaurant-level margins and attractive growth prospects. Economic conditions are likely affecting consumers' decisions to pull away from Chipotle right now, but that won't last forever.
Meanwhile, the company continues to add new locations; it opened 57 restaurants during the first quarter. Chipotle's long-term goal is to get to 7,000 locations in the U.S. and Canada; it currently has 3,800 restaurants worldwide. Its expansion plans in the U.S., Canada, and elsewhere provide significant long-term growth potential.
Chipotle might be struggling right now, but for long-term investors, the recent dip is an excellent opportunity to buy its shares.
