Ackman piles into Starbucks


I have always enjoyed following Bill Ackman's antics within the investment community. For a hedge fund billionaire, he is relatively young and likes to ruffle the feathers of some of the grumpy, old-school titans of the industry. I don't necessarily agree with all his investment decisions but none the less he is very smart and talented.

Earlier this week it was announced that he has taken a $900m stake in one of our recommended stocks, Starbucks. He feels the shares could double in the next three years. His thesis is very similar to ours in this regard. The stock market is underestimating the potential of China. In his 43 page report (which I will try to get my hands on) he says that Starbucks China will grow twice as fast as the rest of the business and this will make that part of the company very significant in years to come.

Remember, Ackman also did something similar when Nike was going through a slump and reaped the rewards. Having said that, he did sell the Nike stake a little early. His timeline is different from ours. Regardless, having someone smart and influential like that to invest alongside us, is good news.