Legendary investor Bill Ackman recently declared that he wants to build Pershing Square into a company like Berkshire Hathaway (BRK.B), aiming for a long-term track record that stands out. 

Earlier in May, he made headlines after investing another $900 million into Howard Hughes Holdings (HHH). This was a clear step toward his goal of following Warren Buffett’s example, using Howard Hughes as a starting point for creating a more diverse holdings company, much like Buffett did years ago.

With Warren Buffett announcing his upcoming retirement as CEO of Berkshire Hathaway, Ackman’s move stands out even more. Let’s dive in.

Inside Howard Hughes’ Financials 

Howard Hughes (HHH) is a premier developer and operator of master planned communities and mixed-use properties. With a market capitalization of $3.6 billion, HHH stands out as a mid-cap company with both stability and significant growth potential. As of May 12, 2025, shares of HHH are down just about 3% in 2025 and up more than 12% over the past 52 weeks.

The company’s latest earnings report, released on May 7, delivered a clear signal of operational strength and strategic momentum. Net income from continuing operations rebounded to $10.8 million, or $0.21 per diluted share, reversing a loss of $21 million, or $0.42 per share, in the same period last year. This turnaround was powered by a record-setting $72 million in net operating income from its Operating Assets segment, up 9% year-over-year. 

There was also a surge in Master Planned Community (MPC) earnings before taxes, which climbed to $63 million, driven by the sale of 70 residential acres at an average price of $991,000 per acre. Adjusted operating cash flow reached $63 million, or $1.27 per diluted share, further underscoring the company’s operational resilience and improved cash generation.

CEO David O’Reilly emphasized, “Our strong first quarter results reflect the resilience of our diversified portfolio and the momentum across our core business segments.” This sentiment resonates as the company continues to navigate a real estate market shaped by elevated borrowing costs and evolving investor expectations.

Blueprint for Growth

Bill Ackman’s Pershing Square Capital Management has made a decisive additional $900 million investment in Howard Hughes Holdings, acquiring 9 million newly issued shares at $100 each, a 48% premium to the prior closing price. This bold move gives Pershing Square a commanding 46.9% stake in HHH, instantly making Ackman the largest shareholder and positioning him as executive chairman of the board. Ryan Israel, Pershing Square’s chief investment officer, has also stepped into the role of HHH’s CIO, signaling a direct and active approach to the company’s next phase.

Ackman’s blueprint is clear: Leverage HHH’s robust real estate portfolio while targeting controlling stakes in high-quality public and private businesses. 

Analysts Are All In on Ackman’s Vision

Wall Street is all in on Bill Ackman’s vision for Howard Hughes Holdings, and the numbers tell the story. All three analysts in coverage have unanimously slapped “Strong Buy” ratings on HHH, with an average price target of $89, 22% higher from the current price. 

This bullish stance comes as the company projects adjusted operating cash flow of $325 million to $375 million for 2025, with a midpoint of $350 million. That cash flow strength is critical as Ackman leans on HHH to help transform Pershing Square into a diversified holdings company, mirroring Berkshire Hathaway’s playbook.

The optimism extends to HHH’s core real estate operations. The Master Planned Communities segment is expected to deliver earnings before tax of $375 million at the midpoint this year, up 5%-10% year-over-year, fueled by relentless demand for residential land. 

Conclusion

Bill Ackman isn’t just talking about building the next Berkshire Hathaway, he’s putting serious money behind it, and Wall Street is clearly on board with his recent big bet. 

With strong fundamentals, ambitious growth plans, and every analyst rating HHH a “Strong Buy,” the odds look stacked in favor of more upside ahead. For investors looking to benefit from a big bet like Ackman’s, this could mean that HHH is a good buy for individuals too.