Why do you prefer companies with clear paths to positive cash flow over capital-intensive startups?
Replied byBill Ackman
Founder & CEO at Pershing Square Capital Management
Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: New York City, New York, United States
Started: 2004
I do not like businesses where you must continually inject capital over time without a clear point where the lines cross and they become cash flow positive. OpenAI, for example, is consuming tens of billions of dollars, and it remains to be seen how long public markets will fund that.
0
From the Full Interview
This answer is part of a full interview with Bill Ackman, Founder & CEO at Pershing Square Capital Management.
Share this Answer
Found this insight valuable? Share it with your network to help others learn from Bill Ackman's experience.
Cite This Answer
Use this answer in your research, article, or academic work
Related Answers
How did you resolve your public dispute with Carl Icahn over your Herbalife short position?
By Bill Ackman
Finance
Not Publicly Disclosed/mo
Why do you focus on durable growth companies rather than investing directly in frontier AI models?
By Bill Ackman
Finance
Not Publicly Disclosed/mo
How would you describe your relationship with President Trump, and what are your thoughts on his policies?
By Bill Ackman
Finance
Not Publicly Disclosed/mo
How does Pershing Square's permanent capital structure give you an advantage over short-term hedge funds?
By Bill Ackman
Finance
Not Publicly Disclosed/mo
How do you approach educating founders about the risks their companies face?
By Emily Yuan
Finance
Approx. $3.3 Million/mo
How do rising interest rates interact with public debt to prick a bubble?
By Ray Dalio
Finance
Not Publicly Disclosed/mo
Why are central bank cash deposits a poor long-term asset to hold?
By Ray Dalio
Finance
Not Publicly Disclosed/mo