Bill Ackman Is Buying Netflix Again — and Adding Five More Stocks to His Portfolio

 Bill Ackman Is Buying Netflix Again — and Adding Five More Stocks to His Portfolio

## Introduction: The Return of the Activist with a New Playbook

Bill Ackman is back, and he's buying again.

The billionaire hedge fund manager, never one to sit on the sidelines, has just pulled off his **biggest portfolio overhaul in years**. On Thursday, Ackman unveiled **six new holdings** that include a dramatic return to Netflix .

The move marks a major pivot for the Pershing Square founder, who is coming off a challenging year for his funds. Through July, Pershing Square USA was down **3.5%** for the year, and London-listed Pershing Square Holdings was down **9.2%** — a stark contrast to the S&P 500's **13% gain** over the same period . This shake-up signals that Ackman is betting big on a new lineup to turn things around.

Alongside Netflix, the additions include **Visa, Mastercard, S&P Global, Intercontinental Exchange, and Alcon** . It's a sweeping move that reflects a clear investment thesis: **durable growth, strong earnings, and market dominance**. Let's break down exactly what Ackman is buying, why he's doing it, and what it means for you.

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## The Netflix Redemption Arc: Why Ackman Is Betting Big Again

### The Painful $400 Million Lesson

To understand why Ackman is buying Netflix, you have to understand the **humiliating exit** in 2022.

Back then, Ackman poured over **$1 billion** into Netflix stock in January, betting on a streaming giant he believed was undervalued. But just months later, Netflix reported its first subscriber decline in over a decade, sending the stock into a tailspin .

Ackman did what he rarely does: he threw in the towel. He sold all of Pershing Square's Netflix shares at a loss—more than **$400 million** in the red . It was a black eye for an investor who prides himself on meticulous research and long-term conviction.

### What's Different This Time?

So why come crawling back? Ackman's team has a clear, articulate answer: **Netflix has won the streaming wars**.

As of June 30, Pershing Square held **3.15 million shares** of Netflix, representing **4.9% of the firm's portfolio** . In a letter to shareholders, Ackman and his Chief Investment Officer Ryan Israel laid out the logic:

> "Netflix has since effectively won the streaming wars. We expect Netflix to compound revenue at a double-digit growth rate, with content costs growing more slowly than revenue driving continued margin expansion… the company's current valuation multiple represents a substantial discount." 

Here's what's changed since the debacle of 2022:

1. **Crackdown on Password Sharing**: Netflix has aggressively monetized password sharing, converting millions of freeloaders into paying subscribers.

2. **Ad-Supported Tier**: The introduction of a lower-priced, ad-supported subscription tier has opened up a massive new revenue stream .

3. **Wider Content Margins**: The company's global content engine and AI-powered user experience are driving efficiency. Content costs are growing more slowly than revenue, which means **expanding profits**.

4. **Live Content Push**: Netflix has entered the live sports and events arena, broadening its appeal and advertising inventory .

Ackman's bet is that Netflix is no longer a growth-at-all-costs startup. It's a mature, cash-generating giant trading at a discount to its potential.

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## The Five New Additions: A Blueprint for Durable Growth

While Netflix grabs headlines, Ackman's other five buys are equally strategic.

### Visa and Mastercard: The Cashless Future

Ackman has taken new positions in **Visa and Mastercard** . The thesis here is straightforward: **the world is moving toward a cashless economy**, and these two companies are the tollbooths on that highway.

As economic moats go, they don't get much wider. Visa and Mastercard have:

- **Unmatched global payment networks**

- **Massive barriers to entry** for competitors

- **Resilience to economic cycles** (people still need to pay for things, even in a recession)

- **Recurring revenue** from transaction fees

Ackman likely sees them as "compounders"—businesses that can grow earnings steadily for years, if not decades.

### S&P Global: The Financial Data Fortress

**S&P Global** is another "picks and shovels" play . The company provides credit ratings, market data, indices, and analytics to financial institutions, governments, and corporations.

Consider its competitive position:

- **S&P 500 Index**: The benchmark for American equities, generating licensing fees from countless ETFs and mutual funds.

- **Credit Ratings**: A duopoly with Moody's; switching costs are enormous.

- **Data Integration**: Financial institutions are locked into S&P's data and analytics platforms.

This is a business that doesn't need to reinvent itself—it just needs to keep collecting fees as the global economy grows.

### Intercontinental Exchange: The Exchange King

**Intercontinental Exchange** owns the New York Stock Exchange and operates commodities, fixed income, and forex trading platforms . It's a **market infrastructure play** that benefits from increased trading volumes.

The thesis is similar to the payment companies: if more assets are traded globally, ICE earns more in transaction fees, listing fees, and data sales. It's a levered bet on the global capital markets.

### Alcon: The Under-the-Radar Bet

**Alcon** is the **eye care company** spun off from Novartis . It might seem like an odd addition to a portfolio of financial services and media companies, but it fits a familiar Ackman pattern: **market leadership in a durable sector**.

Alcon is the global leader in:

- Surgical equipment for cataract and refractive surgery

- Contact lenses

- Ocular health products

The thesis: as the global population ages and eye care needs increase, Alcon's revenues will grow steadily. It's a **defensive, recession-resistant** play that adds diversification to the portfolio.

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## The "Why Now": Ackman's Big Pivot

### A Portfolio Shake-Up Years in the Making

Ackman typically runs a **highly concentrated portfolio** of no more than a dozen companies . Adding six new positions at once is a **massive overhaul**. What's driving it?

1. **The AI Distraction**: Ackman sees the market's obsession with AI as creating **opportunities elsewhere**. As one letter put it, a market focused on AI had created "opportunities in other stocks" .

2. **Fund Underperformance**: With Pershing Square struggling compared to the S&P 500, Ackman needs a catalyst .

3. **The New Fund**: Ackman listed his new fund, **Pershing Square USA**, on the NYSE in April. The public listing means he needs to attract new capital and show performance .

### The Funding Story

How did Ackman pay for this shopping spree?

Earlier this year, Ackman made a splash by building a **$2 billion Microsoft position** . The trade was funded by slashing his Alphabet stake nearly 95% .

It's classic Ackman: **aggressive portfolio reallocation** when he sees a new opportunity. The Microsoft bet came at **21x forward earnings**—a price he considered attractive for a company at the center of enterprise computing.

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## What This Means for American Investors

### The "Ackman Effect" on Stock Prices

Ackman is one of the most closely watched investors in the world. His social media presence on X attracts **2.7 million followers** . When he makes a move, retail investors take notice.

Expect increased interest—and potentially higher stock prices—in:

- **Netflix (NFLX)**

- **Visa (V)**

- **Mastercard (MA)**

- **S&P Global (SPGI)**

- **Intercontinental Exchange (ICE)**

- **Alcon (ALC)**

### Lessons from the Ackman Playbook

For individual investors, Ackman's moves offer a window into his investment philosophy:

1. **Don't Be Afraid to Re-Enter After a Loss**: The Netflix re-entry shows that even the best investors can get a second chance. Conditions change, and so should your thesis.

2. **Focus on Earnings Growth**: Ackman said he believes the firms' earnings are **poised for strong growth**, which he views as "the greatest driver of investment value over time" .

3. **Durable Competitive Advantages**: Each of Ackman's new picks has a wide economic moat—from Netflix's content library to Visa's payment network to ICE's exchange monopoly.

### Risks to Consider

Ackman's picks are not without risk:

- **Netflix faces intense competition** from Disney, Amazon Prime Video, YouTube, and TikTok for attention and content dollars .

- **Financial stocks like Visa and Mastercard** are sensitive to economic cycles; a recession could impact transaction volumes.

- **S&P Global** and **ICE** are exposed to market volatility; if trading volumes collapse, so do their revenues.

- **Alcon** is subject to regulatory and healthcare policy changes.

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## The Backstory: Why Ackman's Moves Matter

### The Activist Investor Turned Capital Allocator

Bill Ackman is one of the most famous—and controversial—investors of his generation. Known for activist campaigns against companies like Herbalife, ADP, and Valeant, Ackman has evolved into a **"capital allocator"** who rarely makes public activist noise.

His portfolio now resembles a **blue-chip compounder fund** rather than a traditional activist hedge fund. The new additions fit this mold perfectly: market-leading businesses with durable growth, strong balance sheets, and resilient earnings.

### The Context: A Challenging Year

Ackman's funds have faced headwinds :

- Through July, **Pershing Square USA** was down 3.5%.

- **Pershing Square Holdings** (London-listed) was down 9.2%.

- The **S&P 500** was up 13% over the same period.

This underperformance may have been the catalyst for change. The new positions represent a bet that Ackman can regain his edge by buying high-quality businesses at reasonable valuations.

### The Restructuring Catalyst

Ackman also exited his estimated **$1.5 billion position in Universal Music Group** after the company rejected his $65 billion takeover bid . The move freed up capital for the new positions and signaled a willingness to move on from activist-style bets.

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## Frequently Asked Questions

### 1. What stocks did Bill Ackman buy in his portfolio overhaul?

Ackman added **six new holdings**: Netflix, Visa, Mastercard, S&P Global, Intercontinental Exchange, and Alcon . The move represents his biggest portfolio restructuring in years.

### 2. Why is Ackman buying Netflix again after selling at a loss in 2022?

Ackman believes Netflix has "won the streaming wars." The company has successfully monetized password sharing, introduced an ad-supported tier, and is expanding margins. As of June 30, Pershing Square held 3.15 million shares of Netflix, representing 4.9% of its portfolio .

### 3. How much did Ackman lose on Netflix in 2022?

Ackman invested over **$1 billion** in Netflix in early 2022 but sold at a loss of **more than $400 million** after the company reported its first subscriber decline in over a decade .

### 4. Why is Ackman buying Visa and Mastercard?

Ackman sees Visa and Mastercard as **"compounders"** with unmatched global payment networks, massive barriers to entry, and recurring revenue streams. The world's shift toward a cashless economy makes these businesses durable growth plays .

### 5. What is Intercontinental Exchange and why is Ackman buying it?

Intercontinental Exchange owns the **New York Stock Exchange** and operates commodities, fixed income, and forex trading platforms . It's a market infrastructure play that benefits from increased trading volumes and global capital market growth.

### 6. How are Ackman's funds performing in 2026?

Through July, **Pershing Square USA** was down 3.5% for the year, and London-listed **Pershing Square Holdings** was down 9.2%. By comparison, the S&P 500 gained 13% over the same period .

### 7. When will Ackman's new holdings be publicly disclosed?

Ackman is expected to detail the investments on an analyst call. The new names will appear in **13-F filings** on Friday, which the SEC requires from fund managers with ownership stakes in U.S. companies at the end of each quarter .

### 8. What are the risks of following Ackman's picks?

Ackman's picks carry standard market risks. Netflix faces competition from Disney and Amazon; Visa and Mastercard are sensitive to economic cycles; and financial data/exchange companies like S&P Global and ICE are exposed to market volatility. Always do your own research before investing .

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## Conclusion: A New Chapter for Ackman—and His Followers

Bill Ackman's latest portfolio overhaul is more than just a quarterly disclosure—it's a **statement of intent**.

After a painful 2022 Netflix experience, after underperforming the S&P 500 for much of 2026, and after turning 60, Ackman is signaling that he's **not done evolving**. His new positions are a bet on durable, cash-generating businesses with wide moats, not speculative growth stories.

Whether you follow Ackman's moves or not, there's a lesson here for every American investor: **conviction matters**. When Ackman lost $400 million on Netflix, he didn't swear off the stock forever. He waited, studied, and when the fundamentals shifted, he bought again.

His thesis is clear: Netflix is no longer a disruptor—it's the establishment. Visa and Mastercard are toll roads to the global economy. S&P Global and ICE are the infrastructure of modern capitalism. And Alcon is the quiet giant in healthcare.

It's a portfolio built for a world where **growth is harder to find and quality matters more than ever**. Whether Ackman's picks will outperform remains to be seen, but one thing is certain: when Bill Ackman makes a move, it's worth paying attention.

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## Disclaimer

*This article is for informational and educational purposes only and does not constitute financial, investment, tax, or legal advice. All views expressed are based on the analysis of publicly available information, including 13-F filings, media reports, and research. The author does not endorse any specific investment strategies or stock recommendations mentioned. Investing in financial markets involves significant risk, including the potential loss of principal. Past performance is not indicative of future results. Before making any investment decisions, please consult with a qualified financial advisor who can evaluate your specific situation. The author may hold positions in some of the securities mentioned and has no obligation to disclose changes in such holdings.*