Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Few people willingly revisit a $400 million mistake. Bill Ackman just poured more money into his.
The Pershing Square CEO has bought back Netflix shares (1), four years after dumping an earlier stake at a huge loss. The new position accounted for 4.9% of Pershing Square's portfolio as of June 30 (2). Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one JPMorgan still sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA.
Learn more with a free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time. What to do before the window closes "Netflix has since effectively won the streaming wars," Ackman and Pershing Square chief investment officer Ryan Israel wrote in the firm's semiannual report (3). The firm expects double-digit revenue growth, with content expenses rising more slowly than revenue.
New facts can make a failed investment worth reconsidering. Ackman's experience also shows how difficult it is to choose the right moments to buy and sell an individual stock. Ackman first jumped into Netflix (NASDAQ: NFLX) in January 2022 (4), investing more than $1 billion after disappointing subscriber projections sent its shares lower.
Just three months later, Netflix reported that it had lost 200,000 subscribers during the first quarter. It was the company's first subscriber decline in a decade and its stock plunged 35% in a single day. Ackman sold all 3.1 million shares, locking in a loss of more than $400 million.
"We have lost confidence in our ability to predict the company's future prospects with a sufficient degree of certainty," he wrote at the time (5). That's why it's so important to stay informed. When new information can overturn a billion-dollar investment thesis, having reliable research at your fingertips can help you decide whether the facts still support your own picks.
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