Billionaire Investor Bill Ackman Just Added a Fourth "Magnificent Seven" Stock to His Hedge Fund's Portfolio. Should Investors Follow Suit?

▤ Summary

Bill Ackman disclosed that Pershing Square added Microsoft as a new core holding, making it the fourth of the 'Magnificent Seven' stocks in the fund. Ackman’s team has been increasing exposure to large tech names due to rising index ownership and short-term investors' lower tolerance for volatility. They bought Microsoft after its recent pullback when the stock traded near 21x forward earnings and highlighted strengths in Microsoft 365, Azure, Copilot integration, and Microsoft’s economic stake in OpenAI. The Motley Fool analyst views Microsoft as a strong long-term buy despite AI uncertainties and expects the company to remain a durable leader in enterprise software and cloud services.

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