While the stock market is actually Performed better than most strategists and analysts expected, especially given rising oil prices due to the Iran war, both nasdaq composite And Dow Jones Industrial Average Have entered the correction zone, which means they are both down at least 10%.
Timing the markets is never easy, but it has become especially difficult for investors to know whether the conflict in the Middle East will be short-lived or could last longer.
Image Source: Getty Images.
However, billionaire investor Bill Ackman has some investing advice right now: Buy dips in quality businesses.
Some of the highest quality businesses in the world are trading at extremely affordable prices. Ignore MSM. One of the most one-sided wars in history that will end well for America and the world. And we have the potential for a major peace gain.
One of the best times…
– Bill Ackman (@BillAckman) 30 March 2026
Ackman is an investment manager for Pershing Square Capital Management Pershing Square Holdingsand has become one of the more closely watched billionaire investors in the modern era. Should investors listen to him?
Which stock is Ackman talking about?
Pershing runs a highly concentrated US equity portfolio, which will have more than $15.5 billion in 11 stocks at the end of 2025.
Based on Pershing’s portfolio, one can conclude that Ackman is generally referring to “the magnificent Seven.” Pershing has invested in this group over the past year and now has a large amount invested in the portfolio alphabet, AmazonAnd meta platform. Other stocks in the “Magnificent Seven”, such as Microsoft, have also been affected and now trade at very cheap multiples.
Meta PE Ratio (Forward) by data YCharts
As you can see, valuations have definitely gone back. Now that the Iran war has damaged most sectors of the market, artificial intelligence Stocks were already struggling due to concerns about overinvestment in AI infrastructure and circular financing, among others.
Ackman has also been quite vocal about this fannie mae And freddie macTwo government-sponsored entities that Ackman believes the Trump administration will eventually release from conservatorship will hold initial public offerings for them. “And Fannie and Freddie are stupidly cheap. The asymmetry is at its best. They could be 10X and that could happen soon,” Ackman told the platform.
Now, AI concerns are likely to persist, at least in the near future, and who really knows what the outcome of a war with Iran would be. But if you have a long-term investment horizon, investors can certainly heed Ackman’s advice.
And it doesn’t have to be with the “Magnificent Seven” or Fannie and Freddie, who take many risks of their own.
Look for stocks related to businesses where the core thesis and business remain intact. If the only thing impacting them is the war in Iran, and business is likely to recover after the conflict, then now is a good time to buy for the long term.