(GuruFocus, February 2, 2010) Investment Guru Bill Ackman appeared on CNBC today, rallying support for his Harbor Investment Conference, during which he is going to bringing together several investment managers to talk about their investment ideas. Participants pay a fee to attend the event and money raised will benefit Charitable organization Boys and Girls Harbour.
In addition, CNBC seized the opportunity to have Ackman talk about the general market and some investment ideas.
General Market
Ackman would not speculate how the market will do in short term. He thinks the market is not cheap, and it is not expensive either. It is a market in which he can find plenty to do.
Kraft Foods Inc. (KFT, Financial)
Ackman disclosed he accumulated 35 million shares of Kraft (KFT). He likes the price Kraft is paying for Cadbury (CBY, Financial). He thinks there is a lot of synergy due to the acquisition. He thinks the earning of the combined company will fluctuate during the next two years and people should not judge the company and the success of acquisition based on 2010 earnings. He thinks by 2012 the merger synergy should settle in.
It may take a couple of years before he sells his shares, he said.
Barnes and Nobles Inc. (BKS, Financial) and Borders Group Inc. (BGP, Financial)
Ackman thinks the Borders stock is trading as if it would declare bankruptcy, which he sees unlikely. Comparing it to the other book seller, Barnes and Nobles (BKS), he thinks BGP offers better risk/reward tradeoff. He advises people wait until after the earning report of Borders Group to judge the company. Long term, he acknowledges some kind of consolidation will happen in the book retailing industry.
GuruFocus data shows that Ackman owns 10.5 million shares of Borders and 6.5 million shares of Barnes and Nobles. He serves on boards for both companies.
Watch the video from CNBC:
In addition, CNBC seized the opportunity to have Ackman talk about the general market and some investment ideas.
General Market
Ackman would not speculate how the market will do in short term. He thinks the market is not cheap, and it is not expensive either. It is a market in which he can find plenty to do.
Kraft Foods Inc. (KFT, Financial)
Ackman disclosed he accumulated 35 million shares of Kraft (KFT). He likes the price Kraft is paying for Cadbury (CBY, Financial). He thinks there is a lot of synergy due to the acquisition. He thinks the earning of the combined company will fluctuate during the next two years and people should not judge the company and the success of acquisition based on 2010 earnings. He thinks by 2012 the merger synergy should settle in.
It may take a couple of years before he sells his shares, he said.
Barnes and Nobles Inc. (BKS, Financial) and Borders Group Inc. (BGP, Financial)
Ackman thinks the Borders stock is trading as if it would declare bankruptcy, which he sees unlikely. Comparing it to the other book seller, Barnes and Nobles (BKS), he thinks BGP offers better risk/reward tradeoff. He advises people wait until after the earning report of Borders Group to judge the company. Long term, he acknowledges some kind of consolidation will happen in the book retailing industry.
GuruFocus data shows that Ackman owns 10.5 million shares of Borders and 6.5 million shares of Barnes and Nobles. He serves on boards for both companies.
Watch the video from CNBC:
