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Billman has been defeated several times. Pershing Square suffered a loss of $400 million from the sale. He's like the crybaby of the playground. I went to a tough school in Queens. He used to beat up little Jewish children and he was like one of them crying because he felt the world was taking advantage of him.
In New York there are many Shaden Freuds towards Bill Lman and we want to acknowledge it. Many people are against him. It's difficult. You make mistakes, it happens. He was also very involved in this company. Despite this, his firm Persian Square Capital is managing assets of nearly US$19 billion with only about 30 employees.
Assets under management per employee at Perching Square are even higher than at Tiger Global, immediately qualifying every Perching Square employee as a true Gigabit Man. No background checks are required. Who is behind the mask of a silver-haired hedge fund investor ? Is Billman a failed successor version of Warren Buffett, a series of mistakes?
Or is he just a professional gambler who sometimes gets lucky? Billman's story has it all. An investor who ignores his critics and displays a clearly alpha mindset. Let me ask you something. It has been a difficult year. Yes, that 's fair to say. Yes, in March 2015 you had $20 billion under management.
Yes. It 's about 11.4 now, something like that. Yes. I do n't know if William Cohan is here. He wrote an article titled Is Bill Akman Finished? I love articles like this. It motivates me every day. A fierce rivalry that would later result in one of the most awkward handshakes of all time. As well as countless lessons for every ambitious young person who is planning their path to the best and is fed up with receiving mediocre advice from average people.
Let's make megalomedia great. Again, Billman is like a modern Roman emperor . He comes from a noble family and started with a large amount of land, but was able to turn it into an empire. His adversaries are numerous and powerful, such as Carl and KH. He won many battles, but he lost even more. But like the Roman army, it is known for never surrendering.
He grew up in Chapcua, New York, about 50 km north of New York City. His father, Lorenzo David Ackman, is chairman emeritus of Ackman Sif Real Estate Group, a New York real estate finance firm founded by his father and uncle in 1926. Generational real estate wealth. Since joining the firm in 1960, Larry Ackman has represented his clients in numerous debt, equity, sale and lease transactions.
He has been responsible for some of the most innovative financial structures in the industry and his son Billman [musician] wants nothing more than to surpass him at some point. You could say that Billman comes from a privileged background, but remember, good times create weak men, and Akman not only maintained the family's wealth and power , but managed to increase it significantly.
As an investor, I am coldly rational when it comes to economics. In 1988 he received a Bachelor of Arts degree from Howard College in social studies, a subject that is now considered completely useless by finance conversations. Perhaps it was already then, because in 1992 Akman obtained his master's degree in business administration from Harvard Business School after his bachelor's degree in arts.
Now, having spent the last few years at university, Bill is ready to take action and has absolutely no interest in starting small. My father, who is here, told me that it was very foolish to start an investment fund right after leaving business school. So Bill starts an investment fund right after graduating from business school.
He takes a lot of inspiration from Warren Buffett. From a young age and from the moment he met Buffett for the first time, the mission has been clear. To build a great legacy by becoming the next Warren Buffett, a term the media has often used to describe him. Have you known Warren for decades, Billman?
Do you like being considered the little buffet? If you investigate thoroughly, ACMAN actually attended many of Buffett's famous shareholder meetings, learning from the best and asking questions. While he was still in school, Akman didn't want to waste any time, so he started the first stage of his journey to becoming a multi-millionaire musician.
David Berkovit, an engineer at the Massachusetts Institute of Technology and a classmate, always asks very intelligent questions [about music], so Akman decides it would be good to have him on his team for anything he tries to build next. Billy and David start a virgin two-member investment club and analyze and invest in stocks after their classes.
After about a year of music and graduating, they decide to try the leap. I was thinking about starting my own investment firm and I told him, I asked Richard what he thought of the idea. He said, "Bill, you don't have to be old to be right. That was enough for me, and I opened an investment fund." They are trying to launch a fund together.
The two managed to raise 3 million US dollars for their first fund. For those who dream of raising a lot of money, ACMAN has a clear message. I was never afraid to ask someone to invest, because although capital was a commodity, good investment ideas were rare assets. In 1992, at the age of 26, Ackman founded Gotham Partners with another Harvard graduate, David P.
Berkovic. The mission: to make small investments in public companies, a perfect testing ground for what will become a lifelong investment career. Because Bill is not an ordinary investor, he is what we call an activist investor. Activism is when a shareholder behaves like an owner. People call these hostile offers.
It is not hostile to the shareholders of these companies. It is considered hostile only because the management of the Target company did not request it. Activist investors acquire a large stake in a public company to influence its management. These companies are often poorly managed, have high costs, and could be more profitable if they were private, or they present problems that the activist investor believes they can solve.
In this way they can unlock investment returns that are not possible through conventional passive investment methods. 10 or 15 times the profit multiple of the original investment. Bill's strategy for generating wealth can be easily summarized. Contrary thinking combined with quick movements and risky .
Diversification is for those who doubt. Bill's Persing Square fund usually has few investments at a time. Diversification as a practice generally makes very little sense to anyone who knows what they are doing. Diversification protects against ignorance. I mean, if you want to make sure nothing bad happens to you compared to the market, you own everything.
There's nothing wrong with that. I mean , that's a perfectly valid approach for someone who doesn't feel like they know how to analyze business. Right at the start of his career, Billman was about to experience one of the most transformative deals of his career. Akman still considers this agreement as one of the most significant investments of his entire career.
This was the perfect opportunity. David Rockefeller is one of the most powerful investment bankers to have ever lived on Earth. His family, the Rockefeller clan, influenced American business history like no other. But in 1995 they were in financial trouble. Rockefeller wants to put a mortgage of more than $1 billion on the family's Rockefeller Center, a large commercial building complex in Midtown Manhattan, now known for its Christmas tree.
1 billion is so much money that no bank will give you a mortgage loan. But Rockefeller is no stranger to creative financial engineering and finds a solution. Rockefeller's solution will open a small window of opportunity for Akman to intervene. Rockefeller establishes a public company as a trust and real estate investment trust called Rockefeller Center Properties.
That company then places a mortgage of more than $1 billion on the Rockefeller Center, the mortgage being the only asset of the public company, financed with a complicated mix of debt and equity. This is where he comes in, demonstrating his entrepreneurial genius and diligence as a young chat in his 20s.
Akman cleverly discovers that by buying shares in the public company he can generate interest in the Rockefeller Center building at a very low price. You can own 6 million square feet, 2 million in air rights, a concert hall and more for a fraction of its long-term value. The stocks have been under financial pressure, so now is the perfect time to buy.
Even today, standing in his office on the 42nd floor of Seventh Avenue with overlooking New York City, he has an ambitious gleam in his eyes when he thinks about the deal. But Ackman can't do it alone. He runs all over the city looking for co-investors until he finally connects with Joe Steinberg Eucadia National Corporation.
You young people watching this video probably don't know what organization Eucadia was back then, but it was a very prestigious financial firm and today it is known as Jeffrey's Financial Group. In short, the deal becomes more complicated. A competing buying consortium led by Goldman Sax ends up winning the bid for Rockefeller Center.
All sorts of interested parties get involved, from real estate tycoon Sam Cell to Donald Trump, who would later try to make America great again. Therefore, although Ackman does not end up winning the deal, this puts the 29-year-old on the radar of the world's top investors. Some connections he will make soon will help him get billions in assets under management.
We will soon discover how he even received a letter from the gigantic patriarch David Rockefeller himself, thanking him for his fair behavior during the deal process. Akman still has the framed letter on his desk to this day. His firm Gotham Partners, suddenly in the spotlight of New York City's financial elite, has $500 million in assets under management 3 years after the offering.
Akman feels like the master of the universe, but all that success blinds Bill and he fails to see his downfall. Things in Gotham get worse in 1998. Akman and Berkovit make the fatal mistake of buying a majority stake in a losing-money golf course operator. They renamed it Gotham Golf and began accumulating debt to acquire more golf courses.
But the debt becomes too high and threatens to crush the company. To get out of all those debts, ACMAN decides to organize a merger between Gotham Golf and a cash-rich real estate company, in which he also has a majority stake. The idea behind the merger is to use the cash on the balance sheet of the real estate company called First Union to rescue the struggling golf business and pay off debts.
But in 2002 a judge ruled against the merger and in favor of First Union's minority shareholders. These minority shareholders oppose the agreement because they receive little or no cash. With the merger stalled and Gotham Golf nearly collapsing, investors are demanding their money back from the partners.
State and federal regulators are investigating whether the music hedge fund uses research reports to influence its stock price. Billman was already applying the tactics of Dejen de Wall Street Bat before was in fashion. Although the investigation comes to nothing, it is another blow for the firm, which is mired in litigation and generating greater concern among investors.
It begins to close operations in 2002 and shuts its doors in 2003. But Manjos's headache is about to end because he is about to face his archenemy for the first time, not the last. In 2003 a dispute develops between Ackman and Carl Ikan over a deal related to Hollywood Realty. Ihan is known as a ruthless corporate raider, a guy you only do business with if you're in a desperate enough situation.
Akman is. I earned this money because of the flaws in the system, not because I'm a genius. He sells his share of Hollywood Realty to Ian for $80 per share to get out quickly. It is trading at $60 per share and Akman believed it was worth more than $100 per share. So they agree to something called "fool's insurance" in Wall Street parlance.
a mechanism that often has less to do with money and more to do with protecting one's reputation. As part of this fool's insurance , the unit purchase agreement states that if ICAN sells the shares within 3 years with a profit of 10% or more, Akman would be entitled to share in the profits from the sale.
According to the contract, he owed his investors about $4.5 million. Ian refused to pay. Akman sued 8 years later and was forced by court order to pay the 4.5 million plus 9% annual interest. Little money but huge negative consequences for man because ik is someone who doesn't forgive easily. We're talking about people who are at the top, at the top, at the top, at the top.
His competitiveness is rooted in ego, but first things start to take a positive turn because Billman is far from finished. His next step is supposed to put him at the S level of legendary investors alongside Warren Buffett, RNL Farmer and Kevin John. For those looking to raise funds, remember where it's best to get commitments of tens of millions of dollars from potential MPs.
Apparently in Cabo San Lucas, a beautiful tourist city in Mexico. Ian Coming, president of the Eucadia National, was vacationing at the same resort as Billman and his wife in February 2003. Ian Coming still remembers the treatment at Rockefeller Center. Aman convinced everyone with his professional demeanor.
He tells Mman, "Whenever you start something new, we want to be your partners, brother. There's just one condition. We want to be your only partner." This prevented Akman from receiving funds from other investors. Now that's conviction. So in January 2004 a new fund was born that would shake up the financial world to this day, Persing Square Capital.
Akman achieves important victories at the beginning. Wendy was one of Ackman's first musical hits on Persing. Akman acquired 10% of Wendy's in 2005. The company is worth $5 billion and is the sole owner of Tim Hortons, the famous Canadian coffee chain and a very representative Canadian charity. Tim Hortons generates $400 million in operating revenue and ACMAN values the company at over $5 billion, an EBIT multiple of 12.5 times.
Wendy is also worth several billion dollars. Meanwhile, you can buy all of Wendy for less than 5 billion. The game plan is to buy Wendy, separate Tim Hortons, and basically get Wendy for free. If Wendy buys 8 per share and Tim Horton splits, the stock would reach $6. Akman proposes separating Hortons from Wendy's management team, he argues, would allow investors to properly value both restaurant chains, especially since the synergies of the combination are minimal, as he describes it, listing Hortons would allow both management teams to be compensated according to the performance of the business they manage and would allow the coffee chain to attract and retain management talent.
Initially, the administration refuses to consider Akman's proposal, but Ackman convinces the administration to follow his suggestions. Wendy eventually stops by Hortons and takes steps to improve margins. Approximately a year and a half later, in November 2006, he sold Wendy's. The stock has risen from 38 to 71, an attractive 87% return in less than 2 years.
Do you remember when we called Akman a modern Roman emperor? Well, Baba is about to face his biggest battle yet, a battle with huge casualties. In 2012, the most important milestones of his career. What are we going to learn? Are you going to learn why Herbalife is going to collapse? Akman took a short position worth $1 billion in 2012, betting against the supplement company Herbalife.
There is not a single Herbalife distributor talking to their recruits about how to sell the product, about how to make a retail sale of a Herbalife product. It's all about how to recruit people to become distributors, because that's the only way you can make money. The claim that Herbalife is a pyramid scheme is false.
Give me one of those technicians. They decided to focus on the poorest people in the world. We are not a pyramid scheme, that is false. But just when Akman is about to win, his archenemy appears. He was like a little Jewish child crying. The situation is intensifying. Ultimately, the company will be held responsible.
The United States will be better when Bill Akman leaves. Is this your most important deal? This is not a deal. This is the most important one. I would say that if we manage to shut down Herbalife, we will save a great many people from enormous harm, and that will probably be one of the most significant things I have ever done for a great many people.
Perhaps the biggest characteristic associated with Bill Agman is his conviction to short the health supplement company Herbalife. Herbalife tells people that they can start their own business selling Herbalife products. To begin with, people must buy many Herbalife products. Then they can try to sell these products or they can recruit more people to sell Herbalife products, which in turn generates compensation for them.
He argues that the company is a pyramid scheme with an intrinsic value of zero. There is not a single Herbalife distributor talking to their recruits about how to sell the product, about how to make a retail sale of a Herbalife product. It's all about how to recruit people to become distributors, because that 's the only way you can make money.
Ackman decides to bet a huge amount of money to back up his words. In 2012, Bill took a short position in Herbalife for $1 billion. In an extensive research report, he explains exactly why he believes Herbalife is a pyramid scheme. The investment world is starting to take notice. In the weeks following his short position, Akman saw Herbalife's stock fall by about 60%.
Things seem to be going well for [musician] who claims to be doing God's work with his operation at Herbalife. But Herbalife will soon become the worst nightmare of his career. In the world of the Gigabitmen, nobody ever forgets. And Carly Khan has been patiently waiting for her chance to get revenge for being forced to pay her $4.5 million .
This led to a live television discussion between Akman and Ichan on CNBC on January 25, 2013. The discussion has already achieved legendary status, one of the greatest moments in the history of financial news. And I'm telling you, he's like the crybaby in the schoolyard. He attended a tough school in Queens, where Jewish children were beaten, and he looked like one of those children crying because he felt the world was taking advantage of him.
Akman promised to donate his profits from the Herbalife deal to charity, and KH disagrees. Then he mentions charity, and that's nonsense. He's not going to donate it to charity. His limited partners aren't going to donate it to charity either, assuming they themselves don't need charity. And when Ikkanan gets bored of attacking Mman, he starts lashing out at the journalist.
Carl, why aren't you honest about Herbalife? You have a long position, or not the entire market knows or suspects it. I did n't come here. I didn't come here to be intimidated by you. OK? If I can speak, let me speak, but I don't need you to say hi, here I am. Nobody intimidates you. Carl, you called into our show to talk to Billman, mainly about Herbalife.
Listen, Max Mayer invited me to have a conversation, not to argue with you. OK? If you want to take Hello. Yes, we hear you. Well, if you're listening, let me speak. I want to say what I want to say, and I'm not going to talk about my position at Herbalife because they want to intimidate me, okay? I'm not intimidating you.
I'm asking the question everyone wants to know, Carl. That's all, but you can make your declaration. If you want to know, I'll talk about what I want to talk about. If you thought like that, I wouldn't go to CNBC. Know? Say whatever you want. I'll tell you what ACMAN said about me, not about Herbalife.
I'll talk about Herbalife when I want to, not when you ask me to, okay? I will never be on a show with you again. Let that be clear, okay? So let's begin with what I want to say. Akman is a liar, okay? Since the 60s and 70s I have lived my life based on handshakes. I almost lost my signature several times by relying on handshakes.
Akman has a low elo rating. He has one of the worst reputations on Wall Street. This is the beginning of the end for Akman's Herbalife operation. Shortly afterwards, Ikan buys shares of Herbalife International. While IAN continues to buy Herbalife shares, the share price continues to show strength. As of May 2013, Ican owned 16.5% of the company.
Everyone on Wall Street is talking about the deal. On November 22, 2013, ACMAN admitted on Bloomberg Television that Perishing Square's open short position in Herbalife was between $400 and $500 million in the red, but that he would not be pressured to exit and would maintain the short position until the end of the world.
In 2014, Akman began another attempt to spread the message about Herbalife. spends $50 million on a public relations campaign against Herbalife, which is designed to affect the company's stock price. But it's too late. In March 2014, the New York Times reported that it had used tactics to undermine public confidence in Herbalife and thus lower its stock price, including pressuring state and federal regulators to investigate the company, paying people to participate in anti-Herbalife demonstrations, and other ways of spreading information about Herbalife.
And now the worst is about to happen. Pman still expects the Federal Trade Commission to uncover illegal activities at Herbalife and even eventually prohibit the company from continuing to operate. In contrast, in July 2016, Herbalife and the Federal Trade Commission reached an agreement ending the agency's investigation into the company.
The Federal Trade Commission will not classify it as a pyramid scheme. It's a situation of good and bad news for the Herbalife company, which is under pressure. The Federal Trade Commission will not classify it as a pyramid scheme, but in return, Herbalifiva will grant a $200 million settlement . On the day of the agreement, Akman loses approximately 500 million US dollars according to Fortune.
In November 2017, Akman tells Reuters that he has hedged his short position, but will continue to bet against Herbalife using Persing Square Put options. But in 2018, Ackman completely exited his short position against Herbalife. Herbalife was one of the most serious defeats for Man; it turned out to be one of the most fatal battles for him.
Little did he know that the ordeal was yet to come. Akman began working with Bent, a multinational pharmaceutical company, in 2014. Valeant adopted a strategy of buying other pharmaceutical companies that make effective drugs for a variety of medical problems and then raising the price of those drugs.
Saving your life cost $1,000. Other companies were practically giving it away. That was Martín Schrelli last week trying to defend his 5000% increase in the price of an essential medicine. This week it's Valent Pharmaceuticals, a Quebec-based company that is under fire for raising the price of two rare heart drugs.
As a result, the company grows rapidly and in 2015 is the most valuable company in Canada. There are three things he loves about the company. The business model, the lucrative compensation plans, and CEO Miguel Pearson, who worked for McKinsey for 23 years before joining Valiant. But soon his career will come to a terrible end.
Pearson and Akman are about to cause a major stir in the pharmaceutical industry, something only Martin Schrell would identify with. First step, acquire another large pharmaceutical company. Allergan. Akman fine-tunes Pearson sees an opportunity to make money. As? Pershing Square acquires a large stake in Allergan, hoping to use this large investment to pressure the pharmaceutical company to sell to Valent.
In the months following the investment, Valent and Akman made multiple offers for Allergan, even going so far as to launch a public takeover bid at one point. However, Allergan's chief executive , David Pyot, is not interested in a deal with Baliant. He already senses that there is something strange about Valiant.
He even calls it a house of cards propped up by drug price hikes and bad accounting. To stop Ballant's takeover attempts , Allergan has to find a so-called white knight, someone who will acquire the company and save it from the hostile buyer. For everything, it's fujas at this point, he will make money one way or another.
When Allergan finds a white knight in a foreign pharmaceutical company called Actavis in 2014, the sale price generates a massive profit for that year, Allergan helps Perishing Square achieve a net profit of 37% after commissions, generating close to $1 billion for ACMAN. But instead of cashing in the profits and moving on, Akman goes back to get involved with Pearon's Ballent.
He even goes so far as to say that Bellant is the next Berkshire Hathaway of the pharmaceutical industry. This time I couldn't be more wrong. He takes the profits from Allergan and becomes one of Baliant's largest shareholders. At first, ACMAN's investment in Band appears to be another gain. In a few months, the company collapses.
Paleant is criticized for raising drug prices. You could say they gave off strong Shkrel vibes. They also promoted their drugs using dubious methods, not fully disclosed to investors. And there were also doubts about the company's accounting practices. Pearson took many steps to manipulate a high stock price and it fell right at the peak.
Akman tries to save the day and publicly defends the company. Are you serious? But it's too late. The stock price plummets. As a result, Pearson is removed as CEO. Federal prosecutors and regulators are investigating the company. Akman stays for a while, even joining the board of directors and trying to change things.
But the situation is desperate. In 2014, he sold his position in Bant and lost almost $4 billion in 2 years. Assets under management at Akman's Pershing Square hedge fund fell from more than $20 billion in the summer of 2015 to $11 billion. and Akman drops off the Forbes 400 list of the richest Americans.
Akman is jota. Most beta testers in the world would give up at this point. That's because no beta on Earth possesses the Jen Bateman. Akman has it and COVID is the perfect opportunity for him to make one of the biggest business moves of all time. Now I want to talk to Billman on the phone. Today he took to Twitter to urge the president to take more drastic measures to stop the spread of the virus.
Bill, thank you for joining us today. In this interview, ACMAN was liquidating half of a position that would later be known as the best deal of all time, increasing its value 100 times. An operation that turned 27 million into 2.6 billion in a period of 30 days. He doesn't say it. He does not say to assault the beaches of Normandy.
He just says to go home. Go home. Spend a month with your family. When the pandemic started in late 2019, Billman got very nervous. At first, he even thinks about liquidating all his assets and turning them into cash, but then he comes up with an idea of how to take advantage of the situation. It updates its shareholders with an ominous message on March 3.
In the last 10 days we took steps to protect the portfolio from market volatility. We did it because we believe that efforts to contain the coronavirus will negatively affect the U.S. and global economies, as well as the stock and credit markets. Akman is using credit default swaps. credit default swaps to carry out this operation.
They can be very destructive. I mean , if you think about it, you can't just go out and insure my house against fire because you don't have an insurable interest, as they call it in the industry. Because once you've fireproofed my house, you might decide that, you know, maybe throwing some matches around my garden might be a good idea.
Why buy a credit default swap and not just short sell? Credit default swaps are safer because losses are limited, unlike the infinite losses when shorting bonds or stocks. For example, you bet that a house will catch fire and you buy fire insurance. You will have to pay monthly premiums on the insurance contract until the house burns down or until the contract expires.
If the house does not catch fire during that time period, then you only lose the limited amount of money you paid into the insurance contracts during that period. If, on the other hand, you bet against the house hoping it would burn down, then the amounts of money you could lose are unlimited. By purchasing credit default swaps, it limits its losses to approximately 1.56 billion in the worst-case scenario.
But he is prepared to do anything to tip the game in his favor, so he uses one of his most important tools as an activist investor. She goes on CNBC and gives a very controversial interview. Hell is coming, that's fine. And in you, you know? I've never actually had this experience before in my life.
The closest thing was the financial crisis, where I said bad things were coming , but this was a feeling like I'd never had before, like a tsunami was coming, you know? The tsunami is coming and you can feel it in the air. 30 days after he made his credit default swap transaction and bought insurance on the US economy, the market collapsed.
Akman's bet pays off and Pering Square earns $1.6 billion. Tell them to bring me my money. Incredibly high performance. Why is their profit so large? Basically because he bought a lot of insurance. Yes, he had to pay 27 million, but he had to pay that every month for 5 years. This means that ACMAN would have to pay $324,000 a year in premiums until he sells his position and makes a profit or until the entire term expires.
Dividing the $324 million in monthly premiums for one year by the CD insurance rate of 0.5% gives you $64.8 billion in bonds on which you were buying protection. The entire US market has $6 trillion in investment-grade bonds. This means that it was buying protection on almost 1% of the market's corporate bonds .
Aman is back on top again. Fast forward to today and he gets into trouble again. In January 2022, Akman revealed that Perching Square acquired an $ 11 million stake in the video platform Netflix. Netflix's stock fell after a weak subscriber growth projection for the first quarter of 2022. Akman sees an opportunity and takes advantage of it.
This morning Billman has now taken a stake in Netflix. The billionaire hedge fund manager said he bought more than 3.1 million euros worth of shares after the stock plummeted last week, making him one of the top 20 shareholders. In a tweet yesterday, Ackman said, "I've always admired Reed Hastings and the company he and his team have built.
We're thrilled that the market has now presented us with this opportunity." He has long been an admirer of the CEO of Netflix, Red Hostings, and the extraordinary company he and his team have built. We don't have a vacation policy, you take as many as you want; we don't have an expense policy, you spend as you see fit.
In April, after a 35% drop in Netflix shares, ACMAN sells its entire stake. Losses of about 400 million dollars. As strange as it may seem [musical], this also shows that he really does learn from his past mistakes. That guy would have definitely bet more before. And frankly, yesterday when I saw the big drop, I thought to myself, "Well, I wonder if he's buying more because old Bill would have bought more and given you every reason." What remains of the man who was once called the next Warren Buffett?
Is Billman defeated or is he doing well? From its creation until 2020, its fund yielded 885% compared to 259% for the SIP. Akman had an annual return of 15%, double the market's 7.5%. For those who want to start a career in investing, Bill suggests a good strategy for success in finance. Clear. So I think the best thing you can learn about the investment business is by reading.
You know, read everything Warren Buffett has written, watch all the YouTube videos he appears in. That's a great way to learn about investing, but investing in music is more than that. The way to truly understand investing is to understand a business. And one of the most important skills you need as an investor is to distinguish between a great business, a good business, a regular business, and a bad business.
Working in a business helps [musicians] to understand their quality. I recommend to those graduating from business schools that this is the best time to work in a startup. Many interesting businesses are emerging . If you're one of the first employees, you'll learn a lot about the business, payroll, marketing, and design.
I believe those skills are invaluable. In addition, you might find something interesting and perhaps even join the next Facebook. Even if the business fails, you learn a lot [about music]. That's the best experience for becoming a good fundamental investor. It will be interesting to see if Bill will double down on his activist investor style or if he will be more passive in the future.
For every ambitious person watching this who is inspired by Bill's story and the activist investor type, you need to think about how social media can take activist investing styles to the next level. The arrival of Twitter Wall Street Businesses and Gigachat Dens, like Elon Musk promoting Dodge Coin, demonstrates that it's an interesting world for activist investors who manage to create a coherent strategy that adapts to this environment.
There are many more questions that could be explored about Bill in future analyses. Will he venture into cryptocurrencies at some point? Will he manage to improve his performance on Twitter, which currently sometimes seems erratic? What would Paul Allen do if he were in charge of Pering Square Capital?
It is clear that he has become more humble because of the experiences he has had in the last 20 years. The question is whether that humility will take his performance with investors to new levels. Finally, if you're interested in seeing a true alpha male in action, check out the beginning of this panel discussion with Billman.
For those who have not been to Said Business School before, welcome to Said Business School and welcome to Oxford University. Just out of curiosity, how many of you are university students, but not business school students? Welcome to Sai. I'm delighted this afternoon because that's what I'll be doing all afternoon.
I am pleased to welcome Billman this afternoon, CEO of Perin Square Capital, a multi-billion dollar investment fund that invests long- term in companies and sometimes collaborates with them publicly to improve their performance. My suggestion, brothers, is that we form an activist hedge fund with this YouTube channel to take on the titans of Wall Street alongside an army of social media DJs.
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