Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Fortune Brands (NYSE: FO) jumped 10% in early market trading on news Bill Ackman's hedge fund Pershing Square has taken an 11% stake in the company.

So what: When a famous investor like Bill Ackman takes a stake in a company, other investors listen. Ackman made a big move into both Fortune Brands and retailer J.C. Penney (NYSE: JCP) so he could be betting on a consumer recovery with these moves.

Now what: Following a famous investor isn't a bad idea, but today's move is a typical reaction to this type of news. When the dust settles, if you still think Fortune Brands is a good buy Ackman is a good investor to follow. I think the market will settle down in the days to come, so there's no reason to rush into Fortune Brands today. But if you've been looking at Fortune Brands, Ackman may reinforce your investment thesis.

Interested in more info on Fortune Brands? Add it to your watch list here by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned here. Fortune Brands is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.