Bill Ackman’s Top 3 Stock Picks: Uber, Brookfield, Restaurant Brands

Bill Ackman of Pershing Square Capital Management remains one of Wall Street’s most polarizing figures, known for high-profile feuds with investors like Carl Icahn and his very public stance on companies like Herbalife. Yet beneath the controversy lies an investment strategy built on intense conviction and portfolio concentration. Unlike many fund managers who spread risk across dozens of positions, Ackman focuses his bets on a select few companies he believes offer exceptional upside. This approach has produced both notable successes and dramatic failures, but his current portfolio construction suggests strong confidence in three core holdings that collectively account for more than half of Pershing Square’s assets.

The rationale behind this concentrated strategy is straightforward: when Ackman identifies what he perceives as a high-probability winner, he backs it significantly. This method demands deep due diligence and a willingness to withstand volatility, but it also means that when his picks succeed, they can drive substantial fund performance. For investors tracking billionaire money managers, Ackman’s current top holdings—Uber, Brookfield Corporation, and Restaurant Brands—provide a window into where one of finance’s most watched figures sees value in today’s market.

Ackman’s largest holding, Uber Technologies (UBER), represents a bet on the continued dominance of ride-sharing and the strategic advantages of a capital-light business model. In an era of elevated auto loan rates and soaring insurance costs, Uber has benefited from consumers opting out of vehicle ownership or reducing the number of cars they own. The company’s core ride-sharing segment has demonstrated impressive resilience, posting approximately 23% constant currency growth year-over-year in recent results, even as its delivery platform has seen more modest expansion.

What makes Uber particularly attractive to investors like Ackman is its highly scalable infrastructure. The marginal cost of adding millions—or even billions—of additional rides is minimal, allowing revenue growth to flow efficiently to the bottom line. This scalability has translated into robust cash generation, which Uber has deployed aggressively to reward shareholders. The company’s recent authorization of a $20 billion share repurchase program signals confidence in its future cash flows and a commitment to returning capital to investors. Trading at a price-earnings ratio around 17-times, with the potential for a future dividend, Uber combines growth characteristics with shareholder-friendly capital allocation, making it a cornerstone of Pershing Square’s portfolio.

Brookfield Corporation (BN) occupies a key position in Ackman’s strategy as a diversified alternative asset manager. The company provides exposure to infrastructure, real estate, renewable power, and private equity—asset classes that are typically difficult for individual investors to access directly. This unique positioning makes Brookfield a proxy for alternative investments, appealing to those who believe demand for these assets will grow over time as investors seek diversification and inflation-resistant returns.

Beyond its role as an access point, Brookfield stands out for its strong growth trajectory. The company has delivered mid-teens earnings per share growth recently, with projections pointing toward an expansion to around 30% by 2026 as its core businesses achieve outsized profitability. Despite this growth outlook, Brookfield trades at a forward price-earnings ratio of just 14-times, offering a compelling valuation that Ackman likely views as a defensive strategic play. In an uncertain economic climate, Brookfield represents a blend of growth potential and value, providing a risk-reward profile that aligns with Pershing Square’s objectives.

Restaurant Brands International (QSR), the parent company of Burger King, Tim Hortons, and Popeyes, rounds out Ackman’s top three holdings with an 11% portfolio weighting. While the stock has traded sideways after a post-pandemic surge, Ackman’s thesis appears centered on the ‘trade-down effect’—the tendency of consumers to seek more affordable options during periods of economic pressure. With inflation straining household budgets, diners are increasingly likely to choose fast-food alternatives over more expensive casual dining, positioning Restaurant Brands to capture shifting consumer behavior.

The company’s stability is underpinned by a healthy dividend yield and an ongoing share buyback program, providing shareholder returns even during periods of subdued growth. As valuations have moderated from previous highs, Restaurant Brands now trades at a more attractive multiple, suggesting potential for upward momentum if growth reaccelerates. For Ackman, this investment represents a calculated bet on economic trends favoring value-oriented consumer staples, with the added benefit of income generation and capital return policies that enhance total returns over time.

Bill Ackman’s current portfolio reflects a clear strategy: concentrate capital in companies with defensible models, growth potential, and shareholder-friendly policies. Uber, Brookfield Corporation, and Restaurant Brands each embody distinct themes—scalable tech platforms, alternative asset access, and consumer trade-down dynamics—that Ackman believes will drive returns in the current environment. While his investment history includes both notable wins and public setbacks, his focused approach to these three holdings demonstrates a conviction that merits attention from market observers.

For investors, Ackman’s top picks offer a case study in how a prominent billionaire money manager is positioning for economic uncertainty, inflation, and shifting consumer habits. Whether these bets will deliver the outsized returns Pershing Square seeks remains to be seen, but the concentrated nature of the portfolio underscores Ackman’s belief that these three companies are positioned to outperform.