Bill Ackman’s emotional outburst galvanizes Governments to act against Covid-19
Bill Ackman‘s cries that “Hell is coming” and “Tsunami is coming” shook the stock markets of the World to the core and sent them plunging into a nosedive.
While some pundits are critical of Bill Ackman for torpedoing the stock markets, it is a fact that his outburst did have the intended effect because it shook Donald Trump and the Governments of the World out of complacency and forced them to pay attention to the problem of the CoronaVirus.
Several cities have now slammed their doors shut on outsiders and quarantined their residents, as advised by the visionary Billionaire.
— Daily Mail US (@DailyMail) March 16, 2020
Thank you #NYGovCuomo
— Bill Ackman (@BillAckman) March 21, 2020
Even India followed suit and announced a complete lockdown of the Country.
32 states and UTs announce complete lockdown covering 560 districts: Officials
— Press Trust of India (@PTI_News) March 24, 2020
— Ayesha Faridi (@AyeshaFaridi1) March 24, 2020
Other Countries have also followed the inspiring examples set by India and the USA.
No doubt, it is only a question of time before the World is rid of the scourge of the deadly CoronaVirus and we can all breathe a sigh of relief.
Stocks are at “crazy prices“. I made an investment of $2.5 Billion
Bill Ackman had already made it clear during his outburst that he is extremely bullish about the stock market and is grabbing stocks.
“We are buying stocks. These are bargains of a lifetime,” he had emphatically declared.
That is why we are buying stocks. These are bargains of a lifetime if we manage this crisis correctly.
— Bill Ackman (@BillAckman) March 18, 2020
Now, he has announced that he has pumped in a mammoth sum of $2.5 Billion to buy top-quality stocks.
Bill Ackman said he has made a “recovery bet” on the economy, investing $2.5 billion in less than two weeks in equities, including upping his positions in several of his portfolio companies like Lowe's & Hilton & reinvesting in others like Starbucks. https://t.co/oDQ70cfLDq
— Lisa Abramowicz (@lisaabramowicz1) March 23, 2020
Activist investor Bill Ackman said he has made a “recovery bet” on the economy, investing $2.5 billion in equities https://t.co/a5ueRK4uyO
— Bloomberg Asia (@BloombergAsia) March 23, 2020
A careful study of the stocks bought by Bill Ackman shows that he has stayed sensible and not strayed from the beaten path.
He has bought trusted and fail-proof blue-chip stocks like Starbucks, Lowe, Hilton Hotels, Warren Buffett’s Berkshire Hathaway etc.
“That’s about the most bullish thing we’ve done,” he said with a big smile on his face.
“We are all long. No shorts. Betting on the country,” he added.
“If you can buy Hilton at $60 when it was trading at almost $120, it’s going to be a bargain,” he explained, implying that it is a no-brainer.
Bill Ackman also revealed that he is looking to tuck into Zoom, a video conferencing company which has benefitted enormously as a result of the increase in Work From Home (WFH) due to the CoronaVirus.
Zoom has surged like a supersonic rocket and posted mammoth gains of 130% in just the first few months of this year.
$ZM is one of the few stocks I would consider owning here for three reasons: 1. It is benefiting from people working from home. 2. It already has great fundamentals on its own. 3. The chart is high alpha and not as likely to be influenced by the general market.
— Mark Minervini (@markminervini) March 19, 2020
Ackman opined that Chipotle, a Mexican grill restaurant chain, would also benefit from the disruptions caused by the CoronaVirus.
“Some companies are actually going to be long-term beneficiaries … Chipotle is going to be a very long-term beneficiary of what’s taken place here” he said.
He pointed out that Hilton is also a great stock because it has lot of free cash flow, low debt, and is quoting at bargain basement prices.
Applying Bill Ackman’s logic to Dalal Street, stocks like Tata Global, Nestle, Jubilant Foodworks (Dominos), InfoEdge (Zomato, Naukri), Indian Hotels (Taj Mahal) etc appear to be no-brainer beneficiaries of the CoronaVirus meltdown.
This crisis is once-in-a-lifetime opportunity for investors: Hiren Ved
Hiren Ved is always bullish and in a mood to buy stocks.
There is no reason why the minor disruption caused by the CoronaVirus should change his mind.
“If you take a two-to-three-year view and if you have invested systematically and in good quality companies, you will definitely make good returns,” he advised with immense confidence in his tone.
It goes without saying that we have to adopt the SIP method and invest in a slow and steady manner.
“Layering investments over a period of time will be the best strategy,” he said sagely.
As to which stocks to buy, it is no secret that Hiren Ved’s favourite stocks are the market leaders like Bajaj Finance, HDFC Bank, Nestle, Asian Paints etc.
These stocks have a trusted pedigree and a proven track record and will be the first to surge when the sentiments change.
This crisis is once-in-a-lifetime opportunity for investors, says Hiren Ved.
— BloombergQuint (@BloombergQuint) March 23, 2020
Alchemy Capital's Hiren Ved advises investors to stagger their investments over a period of time to take advantage of the market correction.
— BloombergQuint (@BloombergQuint) March 20, 2020
I am already nibbling on stocks: David Tepper
Billionaire David Tepper, also a successful Wall Street investor, announced that he is already nibbling on his favourite stocks even though the possibility of more downside cannot be ruled out.
His favourite stocks are also blue-chip powerhouses like Amazon, Google / Alphabet, Alibaba, Micron Technology etc.
He is also tucking into Healthcare and Pharma stocks.
Exceptional opportunity To buy winning stocks
Other eminent pundits on Wall Street like Bill Miller, Marc Lasry, Jim Cramer, Larry Williams, Jeff Gundlach, Mark Cuban are also of the unanimous opinion that we should not miss this opportunity.
“This is an exceptional buying opportunity,” Bill Miller said.
“I think this is an exceptional buying opportunity” — fund manager Bill Miller on CNBC.
— Jay Yarow (@jyarow) March 18, 2020
one of my favorite technicians, Larry Williams, the dean of the group, just went VERY bullish with a Major Buy signal.. Time of Extreme Panic.. The most reliable indicator he has. Ask any technician –he is the best
— Jim Cramer (@jimcramer) March 19, 2020
For the first time in years I am now not short any U.S. stocks. I covered my last three shorts today at 2:37 p.m EDT. The profits were just too great to not harvest, and the panic is palpable.
— Jeffrey Gundlach (@TruthGundlach) March 18, 2020
I can see the S&P 500 making it to around 2700 on this snap back.
— Jeffrey Gundlach (@TruthGundlach) March 25, 2020
It is obvious that we have no choice but to join the wizards and start nibbling on stocks.
Otherwise, we will cut a very sorry face if the stocks surge and we have nothing to show for it!