Bill Ackman's New Closed-End Fund Trades 20% Below Its IPO Price. Is the Berkshire-Style Bet Broken?
Pershing Square USA gives you access to Bill Ackman, but it comes with a unique twist that investors need to understand.
Overview
Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) was a way for people to invest alongside CEO Warren Buffett. Buffett has retired, so the company is now run by Greg Abel, his hand-picked successor. Pershing Square USA (NYSE: PSUS) is a way for people to invest alongside another famous investor, Bill Ackman. But it isn't anything like Berkshire Hathaway. Here's what you need to know as you look at the discounted price of Pershing Square USA.
Berkshire Hathaway is an operating company, meaning that it owns and runs businesses. The list of businesses is huge, including insurance, utilities, railroads, and home builders, among others. It also owns stakes in publicly traded companies. The giant conglomerate is a very complex investment that provided a way to trade alongside famous investor Warren Buffett. Abel still has to prove himself as an investor, but he was trained by Buffett, so it is unlikely the company's approach will change dramatically.
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Originally published at www.fool.com.