WEBVTT - Pershing Square Capital Founder & CEO Bill Ackman Talks Howard Hughes

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. I am sending by

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<v Speaker 1>now with Bill Ackman. Of course he's the CEO of

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<v Speaker 1>Pershing Square, but also the new executive chair of Howard

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<v Speaker 1>Hughes came in this morning with a nine hundred million

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<v Speaker 1>dollar deal. Of course, that brings your stake to more

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<v Speaker 1>than a billion dollars when you include all of your

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<v Speaker 1>affiliates as well. Why you've said you're going to turn

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<v Speaker 1>this into a diversified holding company. You said, this is

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<v Speaker 1>the intent to create a modern day Berkshire Hathaway.

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<v Speaker 2>How do you plan to make that happen?

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<v Speaker 3>Sure, Actually, our steak in the company is much larger.

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<v Speaker 3>We talk about a billion two. That's a nine hundred

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<v Speaker 3>million dollar investment that's being made by Ryan israel I CIO,

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<v Speaker 3>myself and other Persian Square team members. And on top

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<v Speaker 3>of that, our funds own a substantial stake in the company.

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<v Speaker 3>So we're on a look through basis well on a

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<v Speaker 3>billion two. And our plan is to take this great company,

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<v Speaker 3>which has been a real estate development company over its

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<v Speaker 3>fourteen year history, and transform it into a diverse fight

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<v Speaker 3>holding company.

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<v Speaker 2>That's the business plan.

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<v Speaker 3>We're going to do that by buying great, really high quality,

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<v Speaker 3>durable growth companies.

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<v Speaker 1>Now it's interesting to the extent that you want this

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<v Speaker 1>to be kind of the next Berkshire Hathaway. You know,

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<v Speaker 1>we had some amazing news over the weekend here, historic

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<v Speaker 1>really for Berkshire. Buffet's stepping down as the CEO. Have

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<v Speaker 1>you any had any plans to reach out to Buffett

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<v Speaker 1>himself to figure out how to do this?

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<v Speaker 3>So, first of all, I don't want to say we

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<v Speaker 3>want to be the next Berkshire Hathway. Warren Buffet's been

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<v Speaker 3>an incredible sort of hero for me. I've learned an

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<v Speaker 3>enormous amount watching the creation of Berkshire Hathway over my career,

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<v Speaker 3>and he's an aspiration. But you know, how are used

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<v Speaker 3>will be something different. We're starting out differently. You know,

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<v Speaker 3>Buffett started out with a business with not particularly attractive

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<v Speaker 3>long term prospects that he acknowledged. In our case, we're

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<v Speaker 3>starting out with a business that has very attractive long

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<v Speaker 3>term prospects. It's a wonderful business, but it's not a

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<v Speaker 3>business that I would say Wall Street is assigned to

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<v Speaker 3>real value to. But it's a very valuable platform. It's

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<v Speaker 3>a business is going to generate an enormous amount of

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<v Speaker 3>cash over many decades. And what we're going to do

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<v Speaker 3>is we're going to take the nine hundred million and

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<v Speaker 3>then over time, when and.

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<v Speaker 2>If excess cash it gets.

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<v Speaker 3>Is created at the real estate subsidiary, then we'll have

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<v Speaker 3>even more flexibility to use that cash over time. And

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<v Speaker 3>we've got a good track record investing in the highest

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<v Speaker 3>quality growth companies in the world. We're going to do

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<v Speaker 3>that on a much smaller scale as a controlling shareholder

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<v Speaker 3>at Howard Hughes.

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<v Speaker 1>Now you've mentioned also that insurance might be part of

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<v Speaker 1>the future in a bigger way for this company. How

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<v Speaker 1>do you plan to expand on that insurance arm and

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<v Speaker 1>to the extent that you would be willing to do

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<v Speaker 1>M and A what would that entail?

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<v Speaker 2>Sure?

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<v Speaker 3>So, obviously a Berkshire has had the benefitbuff it's an

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<v Speaker 3>amazing investor. But the enhancement to his selection of great

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<v Speaker 3>companies and securities is that he's financed that not just

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<v Speaker 3>with equity, but very low cost leverage in the form

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<v Speaker 3>of insurance flow. That's something obviously that you learn when

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<v Speaker 3>you follow Berkshire Hathaway, and interestingly, you know most other

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<v Speaker 3>insurance companies are standalone public companies. Here, you have an

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<v Speaker 3>insurance company that's a major part of a diverse right

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<v Speaker 3>holding company, and that's given Buffet and Berkshire significant advantages

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<v Speaker 3>in terms of increasing the flexibility of how that float

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<v Speaker 3>can be invested. So that's a model that we're going

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<v Speaker 3>to pursue. We're going to likely pursue it by recruiting

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<v Speaker 3>a great CEO and a team and building a company

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<v Speaker 3>maybe from scratch, maybe from a very small scale.

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<v Speaker 2>You know, that's you know, sort of part of the

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<v Speaker 2>you know, the business plan.

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<v Speaker 1>Now, one big question I'm sure a lot of investors

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<v Speaker 1>have for you is how are you going to ensure

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<v Speaker 1>that the Howard Hughes business doesn't compete with Pershing Square,

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<v Speaker 1>both in terms of investments as well as your time.

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<v Speaker 3>Sure, So, Pershing Square strategy, the strategy of the Pershing

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<v Speaker 3>Square funds is to buy minority stakes in large cap

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<v Speaker 3>and megacap companies, in great businesses in some cases that

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<v Speaker 3>have lost their way, and we can be helpful in

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<v Speaker 3>making them more successful, or in great businesses that for

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<v Speaker 3>whatever reason the market is not assigning a proper value

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<v Speaker 3>or people responding to news unrelated to the business, and those.

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<v Speaker 2>Stocks get cheap.

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<v Speaker 3>But it's a minority investment strategy in very large companies.

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<v Speaker 2>Howard Hughes.

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<v Speaker 3>We're going to use Howard Hughes to acquire controlling interests

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<v Speaker 3>one hundred percent interests in private companies, maybe some small

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<v Speaker 3>cap public companies much smaller scale and controlling interest Now,

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<v Speaker 3>what about.

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<v Speaker 1>The rest of Pershing Square as well? A lot of

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<v Speaker 1>people still have a lot of questions. Do you plan

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<v Speaker 1>to still raise money for a closed end fund?

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<v Speaker 3>Sure SEC doesn't like to tell us to talk about

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<v Speaker 3>potential future offerings, so I have to defer on that one.

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<v Speaker 1>So what about for Pershing Square overall? What's the long

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<v Speaker 1>term plan? There has been an IPO floated around, but

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<v Speaker 1>do you still see yourself getting there? And over what

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<v Speaker 1>kind of timeline?

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<v Speaker 3>So the long term plan for Persing Square is to

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<v Speaker 3>build is one to deliver great returns for our investors

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<v Speaker 3>and our shareholders and the shareholder of Howard Hughes, and

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<v Speaker 3>of course that benefits Pershing Square, the person Square funds

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<v Speaker 3>because we have a major investment already in Howard Hughes

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<v Speaker 3>that we look forward to making more valuable. So that's

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<v Speaker 3>kind of our laser focus. I do want to make

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<v Speaker 3>Pershing Square an entity that survives. We manage permanent capital,

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<v Speaker 3>so it's important that the manager that oversees that permanent

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<v Speaker 3>capital becomes a perpetuity. And while Buffett is ninety four

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<v Speaker 3>and still incredibly active, you know, if I want to

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<v Speaker 3>compete with that track record over time, it's important that

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<v Speaker 3>we set up an entity that can survive of the

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<v Speaker 3>very long term. So I don't know exactly what form

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<v Speaker 3>that will take. We did sell them minority interest in

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<v Speaker 3>Pershing Square to a group of investors last year, and

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<v Speaker 3>we set up an i boartive directors and we really

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<v Speaker 3>run Persian Square the management company today almost as if

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<v Speaker 3>it's a public company from a governance and other perspective.

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<v Speaker 1>Now, I want to talk about your portfolio as well

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<v Speaker 1>here because with this new company you had mentioned small

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<v Speaker 1>and medium sized businesses. Of course, you're exposed to a

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<v Speaker 1>large swath of the American economy through Perching Square.

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<v Speaker 2>Already.

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<v Speaker 1>How are the tariffs impacting you today and how do

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<v Speaker 1>you think that impact will last six months, twelve months

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<v Speaker 1>from now?

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<v Speaker 3>Sure, So, first we own We try to own businesses

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<v Speaker 3>where no matter what's going on in the world, what

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<v Speaker 3>we call extrinsic factors, we can't control whether those some

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<v Speaker 3>commodity prices are tariffs excuse me, or a pandemic interest

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<v Speaker 3>rate volatility, don't have a material effect on the business.

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<v Speaker 3>So we look for what we call durable growth companies.

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<v Speaker 3>And these are the kind of businesses we're going to

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<v Speaker 3>try to find. For Howard Hughes, they're very much insulated

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<v Speaker 3>from things macro. Obviously they do better. Every business does

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<v Speaker 3>better in a positive growth environment, does worse in a

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<v Speaker 3>weakening growth environment. But our companies today, other than Nike,

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<v Speaker 3>I would say, have really not been directly affected by tariffs.

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<v Speaker 3>Although market prices move up and down based on uncertainty.

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<v Speaker 2>Does that not bother you?

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<v Speaker 3>Though? No, it doesn't bother me. Look, the President has

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<v Speaker 3>an objective here, right. It's critically important for the United

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<v Speaker 3>States strategically and defensively for us to know source certain

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<v Speaker 3>key products in the United States, have them be manufactured here,

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<v Speaker 3>whether those of pharmaceutical ingredients or stuff we need to

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<v Speaker 3>defend the country, to build weapons, AI anything AI related semiconductors,

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<v Speaker 3>and so creating the incentive for those important high value

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<v Speaker 3>manufacturing and other activities happening here.

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<v Speaker 2>I think it's critically important.

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<v Speaker 3>You know, for eighty years you know, beginning after World

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<v Speaker 3>War Two, the United States, you know, helped save the

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<v Speaker 3>world and then help save the world economically and allowed

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<v Speaker 3>for trade barriers.

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<v Speaker 2>To be built up over time.

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<v Speaker 3>That's allowed Asia, excuse me, countries in Asia Europe to

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<v Speaker 3>marshall plant etcetera, to recover, and then over time those

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<v Speaker 3>tariff barriers have remained even as those countries have become

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<v Speaker 3>very aggressive competitors the United States. Think the Japanese auto

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<v Speaker 3>industry and how it is really dominated US auto industry

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<v Speaker 3>over time, and it's time for those trade barriers to

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<v Speaker 3>come down. And the President is using tariffs in a

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<v Speaker 3>tactical way to address those trade barriers, which are not

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<v Speaker 3>just tariffs, but there are other things that make it

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<v Speaker 3>difficult for US goods. The other issue is trying to

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<v Speaker 3>address is balance of trade. Right, we still have balance

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<v Speaker 3>of trade issue. Buffett actually talks about this long term

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<v Speaker 3>as a problem and he wants to incentivize companies to

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<v Speaker 3>do business in the United States.

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<v Speaker 2>Now.

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<v Speaker 3>The way he goes about things, as we've seen from

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<v Speaker 3>the President, is a bit of a I would call

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<v Speaker 3>it shock and awe, which tends to scare people, but

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<v Speaker 3>ultimately he's.

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<v Speaker 2>A deal maker.

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<v Speaker 3>He likes to make deals, and I expect, you know,

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<v Speaker 3>he did the right thing in pausing tariffs reciprocal tariffs

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<v Speaker 3>for ninety days, and I think that gives time to

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<v Speaker 3>negotiate with our eighteen largest countries. And I think the

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<v Speaker 3>next step probably should be, I call it one hundred

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<v Speaker 3>and eighty day pause, take down the China tariffs. That

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<v Speaker 3>will give US businesses that are actually under pressure. There

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<v Speaker 3>are a lot of businesses unlike the ones we own,

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<v Speaker 3>that are tariff of one hundred and forty five percent

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<v Speaker 3>on goods they sourced from China. Can decimate the businesses,

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<v Speaker 3>particularly small businesses that don't have the wherewithal to manage

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<v Speaker 3>through this period of time. So I think we want

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<v Speaker 3>to be economically our strongest when we're negotiating, and the president,

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<v Speaker 3>you know, pausing tariffs f one hundred and eighty days

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<v Speaker 3>on China sets up a very interesting dynamic where, you know,

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<v Speaker 3>puts US really in driver's e Give me one second,

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<v Speaker 3>I want to it's an important point. So right now,

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<v Speaker 3>because of the announcement, every business that sources in China's,

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<v Speaker 3>every US company, et cetera, is relocating their supply chains

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<v Speaker 3>out of China. That's not going to change even if

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<v Speaker 3>the tariffs go from one hundred and forty five percent

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<v Speaker 3>down to ten or down to twenty percent. So once

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<v Speaker 3>we pause, China is under enormous pressure to make China

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<v Speaker 3>a good place to do business, to eliminate these kind

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<v Speaker 3>of trade barriers, and I think at enabling a very

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<v Speaker 3>successful negotiation.

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<v Speaker 1>So you were among the first to advocate for that

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<v Speaker 1>ninety day pause. Did you talk to anybody in the

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<v Speaker 1>Trump administration or the President himself?

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<v Speaker 2>And are you in talks with him about.

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<v Speaker 1>This one hundred and eighty day pause? So you post

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<v Speaker 1>about that online as well, so you are getting more

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<v Speaker 1>vocal about this idea kind of happened.

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<v Speaker 3>I think it can certainly happened. And you know, I

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<v Speaker 3>heard Scott Bessett was here yesterday. He seemed very constructive

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<v Speaker 3>on where negotiations are headed.

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<v Speaker 2>So we shall see.

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<v Speaker 1>But more specifically, is he receptive to your idea?

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<v Speaker 3>You know, I don't think it's a good idea for

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<v Speaker 3>me to discuss relationships or conversations I have with people

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<v Speaker 3>on the administration.

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<v Speaker 1>Well, fair enough, do you think that there could be

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<v Speaker 1>exemptions made? You mentioned small businesses. This is a part

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<v Speaker 1>of the economy that is getting hard hit. You've said

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<v Speaker 1>it yourself. How is this a main street strategy If

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<v Speaker 1>small businesses are getting hit harder than the larger one.

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<v Speaker 3>Sometimes you have to have some short term pain to

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<v Speaker 3>get a much better long term outlook. But I think

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<v Speaker 3>the President has made his points clear, and I do

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<v Speaker 3>think it's important to kind of, you know, pause the

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<v Speaker 3>China terriffs. That will take the pressure immediately off of

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<v Speaker 3>kind of the smaller businesses. And you know it's not

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<v Speaker 3>just affecting small but no, by the way, there are

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<v Speaker 3>some positive effects from the China terriffs, which you know

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<v Speaker 3>a number of US manufacturers, many are doing very well

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<v Speaker 3>because of course people are looking to source product in

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<v Speaker 3>this country. To the extent something's made in China before

0:11:27.080 --> 0:11:30.120
<v Speaker 3>and there's someone you can source from in America, you're

0:11:30.520 --> 0:11:32.640
<v Speaker 3>banging down the door to do.

0:11:32.640 --> 0:11:33.440
<v Speaker 2>Business with them here.

0:11:33.480 --> 0:11:35.839
<v Speaker 3>So there is a big boost to a meaningful number

0:11:36.480 --> 0:11:40.400
<v Speaker 3>of small, medium size, and large businesses that manufacture in

0:11:40.440 --> 0:11:43.160
<v Speaker 3>the US. But there is a negative effect on companies

0:11:43.200 --> 0:11:45.719
<v Speaker 3>that don't have that flexibility or the nimbleness to move

0:11:45.720 --> 0:11:47.640
<v Speaker 3>their supply chains quickly.

0:11:48.440 --> 0:11:49.760
<v Speaker 2>That's what I'd like to see avoided.

0:11:50.360 --> 0:11:53.640
<v Speaker 1>Do you think that this can be done while avoiding

0:11:53.640 --> 0:11:55.640
<v Speaker 1>a recession. Do you think that a recession is a

0:11:55.679 --> 0:11:57.000
<v Speaker 1>foregone conclusion.

0:11:56.600 --> 0:11:57.760
<v Speaker 2>At this point, I don't.

0:11:57.960 --> 0:12:01.280
<v Speaker 3>I think I don't think of recessions foregone conclusion, and

0:12:01.280 --> 0:12:03.240
<v Speaker 3>I think there are real reasons for optimism. I just

0:12:03.240 --> 0:12:06.520
<v Speaker 3>don't want this turbulent period to carry on too long.

0:12:06.679 --> 0:12:10.440
<v Speaker 3>I'd like to see deals get announced and progress made,

0:12:10.720 --> 0:12:14.000
<v Speaker 3>and then I think people can start looking beyond the

0:12:14.040 --> 0:12:15.760
<v Speaker 3>immediate sixty or ninety days.

0:12:16.360 --> 0:12:19.439
<v Speaker 1>You mentioned that even after that sixty ninety, one hundred

0:12:19.440 --> 0:12:21.120
<v Speaker 1>and eighty days that tariffs will.

0:12:21.000 --> 0:12:21.680
<v Speaker 2>Still be higher.

0:12:22.920 --> 0:12:25.400
<v Speaker 3>I don't know what the ultimate outcome is, and it's

0:12:25.440 --> 0:12:28.240
<v Speaker 3>not just tariffs. You got to look at the overall

0:12:28.240 --> 0:12:30.679
<v Speaker 3>effect of the various trade barriers coming down right there.

0:12:31.200 --> 0:12:33.600
<v Speaker 3>There are countries with low terroiffs but still have enormous

0:12:33.600 --> 0:12:36.960
<v Speaker 3>barriers to US goods in their markets, and so it

0:12:37.000 --> 0:12:40.600
<v Speaker 3>could absolutely be a lot of reasons for optimism about

0:12:40.600 --> 0:12:46.000
<v Speaker 3>the economy. So one, you know the tax bill yesterday,

0:12:46.360 --> 0:12:49.000
<v Speaker 3>the treasure Secretary said it could be signed in July fourth.

0:12:49.400 --> 0:12:54.960
<v Speaker 3>That's a very pro growth initiative. Really, the deregulation process

0:12:55.320 --> 0:12:59.679
<v Speaker 3>could be very pro growth for the country. Inflation has

0:12:59.679 --> 0:13:05.160
<v Speaker 3>really come down meaningfully energy prices, gas prices, egg prices. Right,

0:13:05.400 --> 0:13:08.760
<v Speaker 3>that's a very positive thing, uh, you know, for you know,

0:13:08.800 --> 0:13:10.480
<v Speaker 3>for our economy.

0:13:10.040 --> 0:13:10.960
<v Speaker 2>And for the consumer.

0:13:11.360 --> 0:13:13.559
<v Speaker 3>I think the only thing that we suffer from right

0:13:13.600 --> 0:13:17.400
<v Speaker 3>now of substance economically is the inherent uncertainty about the

0:13:17.480 --> 0:13:21.000
<v Speaker 3>terriff situation. I think the sooner that's resolved, the more

0:13:21.040 --> 0:13:23.360
<v Speaker 3>that the economy can can move forward it. And there's

0:13:23.440 --> 0:13:26.320
<v Speaker 3>also reasons for optimism kind of geopolitically, you know. I

0:13:26.320 --> 0:13:30.040
<v Speaker 3>think it's likely will uh you know, we'll have I

0:13:30.040 --> 0:13:33.440
<v Speaker 3>think the Ukraine Russia war can get resolved this calendar year,

0:13:33.520 --> 0:13:36.320
<v Speaker 3>and hopefully sooner rattan later. I think the Middle East

0:13:36.640 --> 0:13:39.800
<v Speaker 3>can be the temperature can come way down once we

0:13:39.880 --> 0:13:43.800
<v Speaker 3>resolve by negotiation or otherwise, the Iranian situation. So I'm

0:13:43.920 --> 0:13:46.800
<v Speaker 3>an optimist, and I've always been an optimist about our country.

0:13:47.080 --> 0:13:49.240
<v Speaker 1>So before I let you go, also, I want to

0:13:49.280 --> 0:13:51.680
<v Speaker 1>have you weigh in on what's happening between Harvard and

0:13:51.679 --> 0:13:54.360
<v Speaker 1>the Trump administration as well, because this morning you would

0:13:54.400 --> 0:13:57.680
<v Speaker 1>call it for the resignation of Penny Pritzker from Harvard's board.

0:13:58.160 --> 0:14:01.120
<v Speaker 1>Now have you talked to her, her or any of

0:14:01.120 --> 0:14:02.559
<v Speaker 1>the other board members, So.

0:14:02.520 --> 0:14:05.760
<v Speaker 3>I spoke to her, you know, very early on, in

0:14:05.800 --> 0:14:09.000
<v Speaker 3>the midst of the events after on campus, after October seventh.

0:14:09.000 --> 0:14:10.400
<v Speaker 3>They've only spoken to her once. And by the way,

0:14:11.040 --> 0:14:12.880
<v Speaker 3>I don't know. Well, I'm sure she's a lovely person,

0:14:13.559 --> 0:14:16.720
<v Speaker 3>but at some point you have to accountability for what's

0:14:16.760 --> 0:14:19.760
<v Speaker 3>gone on at Harvard, and I've not seen any accountability

0:14:19.440 --> 0:14:20.800
<v Speaker 3>at the governance level.

0:14:21.520 --> 0:14:21.720
<v Speaker 2>You know.

0:14:21.760 --> 0:14:23.960
<v Speaker 3>The notion that she's still sharing the Harvard board and

0:14:24.720 --> 0:14:27.160
<v Speaker 3>leading the charge here, I think is a big negative.

0:14:27.840 --> 0:14:30.840
<v Speaker 3>And I think they've mismanaged the relationship with the administration

0:14:30.920 --> 0:14:35.040
<v Speaker 3>in a way that's enormously economically costly to Harvard and

0:14:35.400 --> 0:14:38.360
<v Speaker 3>funding at Harvard. And you need a new face at

0:14:38.360 --> 0:14:41.520
<v Speaker 3>the top of the just even to make a deal right.

0:14:41.840 --> 0:14:45.120
<v Speaker 3>And again, I go to the corporate Harvard's the oldest

0:14:45.120 --> 0:14:46.000
<v Speaker 3>corporation in America.

0:14:46.320 --> 0:14:47.440
<v Speaker 2>Go to any other corporation.

0:14:47.880 --> 0:14:51.600
<v Speaker 3>If they managed the last you know, eighteen months the

0:14:51.640 --> 0:14:53.480
<v Speaker 3>way that they managed, there would be a new there

0:14:53.480 --> 0:14:54.800
<v Speaker 3>would be a new chair, and there would be a

0:14:54.840 --> 0:14:57.520
<v Speaker 3>new CEO in place. The new CEO is there, but

0:14:57.600 --> 0:15:00.440
<v Speaker 3>he's more interim. But they've done nothing in terms of

0:15:00.440 --> 0:15:02.000
<v Speaker 3>accountability at the board level.

0:15:02.520 --> 0:15:05.080
<v Speaker 1>Has the ship sailed for Harvard in terms of a

0:15:05.120 --> 0:15:07.320
<v Speaker 1>potential negotiation with the administration.

0:15:07.560 --> 0:15:10.080
<v Speaker 3>No, and I would love to be helpful there. You know,

0:15:10.120 --> 0:15:12.840
<v Speaker 3>I care enormously about the institution. I want Harvard to succeed.

0:15:13.800 --> 0:15:16.200
<v Speaker 3>I think the president has a number of very key

0:15:16.240 --> 0:15:18.120
<v Speaker 3>issues that are critical. It's not just the issue of

0:15:18.360 --> 0:15:23.080
<v Speaker 3>antisemitism and Prohomas issues on campus. He makes some very

0:15:23.080 --> 0:15:25.920
<v Speaker 3>good points about bureaucratic waste at the institution.

0:15:26.120 --> 0:15:26.760
<v Speaker 2>You know, I.

0:15:26.760 --> 0:15:31.600
<v Speaker 3>Believe that if taxpayers are funding a private institution like Harvard,

0:15:31.560 --> 0:15:36.320
<v Speaker 3>and particularly one that has a massive endowment, the university

0:15:36.360 --> 0:15:38.800
<v Speaker 3>is a fiduciary for those funds. And if they're wasting

0:15:38.840 --> 0:15:43.480
<v Speaker 3>money on overhead and bureaucracy that really is interfering or

0:15:43.520 --> 0:15:45.960
<v Speaker 3>certainly not enhancing education, they should do something about it.

0:15:46.280 --> 0:15:48.040
<v Speaker 2>Harvard should. Education is about being.

0:15:47.880 --> 0:15:51.320
<v Speaker 3>Exposed to diverse views, and if you know, university, as

0:15:51.360 --> 0:15:55.120
<v Speaker 3>I've said, becomes a political advocacy organization, you know, query

0:15:55.160 --> 0:15:57.160
<v Speaker 3>whether it should be getting taxpayer support.

0:15:57.640 --> 0:15:59.320
<v Speaker 1>Well, we thank you so much for joining us here,

0:15:59.360 --> 0:16:01.120
<v Speaker 1>and said that has been Ackman, who of course is

0:16:01.120 --> 0:16:03.680
<v Speaker 1>the CEO of Persian Square as well as the new

0:16:03.760 --> 0:16:06.240
<v Speaker 1>executive chair of Howard Hugh's fresh off of a deal

0:16:06.480 --> 0:16:07.040
<v Speaker 1>just this morning,