Bill Ackman Took A $4 Billion Hit But Says 'Making Progress Each Day' Was Key To Recovering From The Valeant Disaster

Billionaire investor Bill Ackman opened up about the most painful chapter of his career—the collapse of his $4 billion investment in Valeant Pharmaceuticals. In a candid interview, he explained how the disaster nearly wrecked his firm, his finances, and his personal life.

What Happened: "We were not a passive investor, but we became a passive investor," Ackman said, calling Valeant "a very unusual investment for us." Unlike his typical hands-on approach, Pershing Square stood by as Valeant's acquisition-driven model fell apart. As the stock collapsed, investors began shorting Ackman’s other positions, compounding the damage. "I thought we could lose the business," he admitted on the Lex Fridman podcast last year.

At the same time, Ackman was dealing with a divorce, a lawsuit from a shareholder, and an attempt by Elliott Management to take control of his publicly traded investment vehicle. To fend off the takeover, he borrowed $300 million from JPMorgan and personally bought the shares needed to maintain control.

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Why It Matters: The experience left him shaken but ultimately changed his approach. "There was a period of time where I didn't think I was going to make it," he said. In response, he etched Pershing Square's investment principles in stone and gave copies to every employee.

Reflecting on the aftermath, Ackman said: "If you're making progress each day, you're in a good place. If you're not making progress each day, you're in a very bad place." The Valeant saga pushed him to refocus on process, discipline, and long-term thinking.

From near collapse to recovery, Ackman's story is one of personal and professional resilience. "It was about love, it was about people believing in me, it was about sticking to it, it was about getting up every day," he said.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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