Ackman Loads Up on Wide-Moat Stocks at Compressed Valuations

Bill Ackman's investment strategy is focused on companies with wide moats and undervalued stocks. His hedge fund, Pershing Square, has accumulated positions in Netflix (NFLX), Visa (V), Mastercard (MA), and S&P Global (SPGI).

NFLX is seen as a winner in the streaming wars, with a robust global subscriber base and improving free cash flow. The company's expected earnings per share (EPS) compounding rate is approximately 19% annually.

V and MA are considered financial 'toll roads' due to their unmatched network effects, high margins, and double-digit EPS growth. Both companies have a 10/10 moat score.

SPGI has multiple moats, including its ratings, benchmarks, and proprietary data, which are deeply embedded in financial markets. The company's current valuation is below historical norms, with earnings growth set to reaccelerate.