Bill Ackman PLUS Permanent Capital EQUALS Valeant

It was all Bill Ackman late today in my streams.

It is amazing that Intel’s $15 billion purchase of Mobileye could be overshadowed by Bill’s $4 billion realized loss in Valeant, but for the moment it is. Today, both Netflix and Amazon are also on verge or breaking out to new all-time highs.

So why the fascination with Ackman?

Bill has permanent capital. In the world of finance, that is the BIGLY of BIGLY.

By scoring permanent capital, Bill had socialized all his future activist losses.

Back in 2014 I did a podcast with my friend Michael Parekh (he ran Goldman’s internet research back in the day) about Bill’s score. In the same podcast we discussed legendary venture capitalist Bill Gurley’s yellow flag raising about valuations in the Silicon Valley. Little did I know, or for that matter did Bill Gurley, he was talking about Bill Ackman.

Back in 2015, Forbes ran a breathless cover story on Bill Ackman as a Baby Warren Buffett:

Talk about magazine cover jinxes. By the way, the same Forbes cover was also trumpeting the bond crash that never happened and Honda’s flying cars. No wonder my son Max thinks reading is overrated.

Today I asked my followers to rewrite the Forbe’s headline. There were so many funny ones but my favorite was from @stratostrades who wrote in – ‘I Lost 50 pounds on Herbalife, find out How I did it’.

Tomorrow, the Ackman and Valeant jokes/memes will continue. I doubt Bill Ackman cares. The lessons from his losses here are what matters most. Bill should have followed his own 9 lessons that he shared on the internet back in 2013:

Jack Damn adds this for emphasis…losers average losers:

jackdamn shared a chart on StockTwits

Ok back to work.


Also published on Medium.