Bill Ackman reveals a position in Uber. Why he buys shares

Ackman leads a super -concentrated fund and rarely takes up new positions. This would be worth a value of 2.25 US dollars for the fund, which is somewhere in the management of around 20 billion US dollars.

The Uber shares unloaded the profit at the beginning of this week, but stormed back the next day and continued today. That will certainly not hurt.

I can do a pretty good case because it achieves a 5% free cash flow return and is still growing very quickly.

The bear case is that Tesla and other robotaxis will destroy business. However, the Bulls case that the CEO has sketched is that there will be many automotive companies that solve autonomous driving. Even if Tesla solves it one year before everyone, there cannot be enough cars to dominate the market before others catch up.

This will ensure that it is a fragmented market and that Uber remains in the center of the network ecosystem. It essentially takes a license fee because it continues to use 180 million users (and grow), regardless of this.

Here is what Ackman said, including his celebrity name drop:

I was a long -term customer and admirer of Uber when Edward Norton showed me the app in the early days. I was also lucky enough to be a day in society in the company through a small investment in a venture fund.

During a great company, Uber suffered from unpredictable management. Since he came to the company in 2017, Dara Khosrowshahi CEO has done an excellent job to transform the company into a highly profitable and bar generation of growth.

We believe that above is one of the best companies in the world. Remarkably, it can still be bought on its inner value with a massive discount. This favorable combination of attributes is extremely rare, especially for a large cap company.

We will soon communicate more about our thinking about the company.

The Uber shares rose by almost 8%.