Bill Ackman Thinks This Factor Is Even More Important Than Valuation For Long-Term Investments

Bill Ackman has built a portfolio of stocks that he believes currently trade at very compelling valuations. The head of Pershing Square (NYSE: PS) has built a strong track record as a long-term buy-and-hold value investor. But some of his top holdings today wouldn't be considered value stocks by most.For the most part, the stocks in the portfolio have valuations around the S&P 500 average, or in some cases, much higher. That's because valuation isn't the most important factor for generating long-term returns, Ackman explained in his recent letter to shareholders. While valuation should always be a consideration, strong and sustainable earnings-per-share growth is even more important, Ackman says.He explains his thesis with simple math, and while it opens the universe of so-called "value stocks," it follows the same ethos as the father of value investing, Ben Graham, and Graham's most well-know pupil, Warren Buffett.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool