What is the core investment framework Pershing Square uses to evaluate prospective companies?

We focus entirely on identifying exceptionally durable, predictable, and well-capitalized enterprises with formidable competitive moats. Over decades, we have developed a curated library of businesses we would love to own at the right valuation. Most of the time, elite franchises trade at modest forward returns because the market recognizes their quality. We wait patiently for volatility or temporary misunderstandings to discount these franchises into our strike zone, typically targeting long-term internal rates of return well north of 20 percent.