Billionaire Bill Ackman Just Invested in Netflix Stock. Here's Why Investors Should Care.
The famed hedge fund manager believes a cheap valuation and strong earnings growth will drive the streaming stock in the coming years.
Overview
As a student of Warren Buffett, Bill Ackman has operated his hedge fund, Pershing Square Capital Management, with a concentrated portfolio of what he believes to be high-quality businesses. The billionaire frequently publicizes his firm's thinking. This provides valuable insight for individual investors looking at potential places to allocate their capital.
During the second quarter, Ackman's fund acquired 13.1 million shares in Netflix (NASDAQ: NFLX). As of June 30, the streaming stock represented less than 5% of the entire portfolio, which doesn't make it a top-10 position. This is still a notable purchase given that Netflix shares currently trade 42% off their peak (as of Aug. 14).
Details
Here's why investors should care about Bill Ackman's latest move.
Source
Originally published at www.fool.com.