By: Vijay Marolia
Source: Real Clear Markets
Bill Ackman tends to be right more often than he is wrong. Over the past decade, he and his team have earned over $13 billion in profits by acting on their best investment ideas. These actions have gained Ackman fame for his heroic actions that enhance market knowledge, but also criticism. Yet one thing is for certain, Ackman and his team at Pershing Square definitely do their homework.
In fact, they do much of the homework that the regulators are either too busy, or too naive to do themselves. The best example of this is well documented in the book, Confidence Game by Christine Richard, which details his volatile, but successful campaign against bond insurer MBIA. At first, his thesis was met with incredulity, as very few people believed him. Several long and stressful years later, the facts revealed that Ackman was right. It takes time for people to learn the truth…