Bill Ackman, the billionaire manager of prominent hedge fund Pershing Square Capital, is one of the most outspoken voices on Wall Street. This has earned him a devoted following of individual investors who follow his trades. 

Although he has been on the wrong side of several bets, Ackman earned notoriety for his profitable investments in Chipotle (CMG) and Wendy’s (WEN) and his work in restructuring mall operator General Growth Properties. 

Now, Ackman wants to level up his Pershing Square and evolve to create a “modern-day Berkshire Hathaway.” While I’d contest that no individual will be able to recreate the amazing long-term investment vehicle that Warren Buffett’s Berkshire (BRK.B) has become, it’s also true that attempting to recreate a renowned global conglomerate is a goal that’s worthy of consideration in its own right.

Here’s what Ackman is planning, and which stock he’s currently relying on as the cornerstone of his portfolio.

The Strategy

According to recent reports, Bill Ackman is looking to convert his $1.4 billion investment in Howard Hughes Holdings (HHH) into a Berkshire-like vehicle, using the company’s excess capital to invest in other companies that can create long-term income streams. 

The idea is simple .Find a company with a solid balance sheet and excess cash, invest that capital into companies with the potential to outperform the market over long periods of time, and continue to see share price appreciation take hold.

On a year-to-date basis, HHH stock has not performed particularly well. We’ll have to see what the market makes of this recent strategic shift, and if other investors will follow Ackman into Howard Hughes as a way to beat the market. For now, I think the jury’s still out.

Uber Could Be This Company’s Cornerstone Holding

If Bill Ackman is successful in eventually taking complete control of Howard Hughes Holdings and converting the company to a Berkshire-like entity, I think it’s pretty clear Uber Technologies (UBER) would be this fund’s top holding. 

Uber currently makes up nearly 20% of Ackman’s current Pershing Square portfolio, and he has been known to make large, asymmetric bets in the past. Accordingly, I wouldn’t be surprised to see him push for Howard Hughes to add exposure to such a company over the long term.

Looking at Uber’s fundamentals above, it’s clear why Ackman is a bull. 

Despite the stock surging more than 18% over the past month, the company’s trailing price-earnings ratio remains very low at around 16 times. This comes despite strong growth and a reasonable beta of 1.43x, key factors I think could make this stock a long-term winner.

Uber continues to dominate the urban mobility and delivery services market, two areas of the economy that continue to see growth. For long-term investors bullish on the future of ride-hailing, Uber remains a top pick in my books, and I can see why Ackman is so enamored by this name.

What Do Analysts Think?

Don’t just take my word for it. Wall Street analysts covering Uber have a consensus “Strong Buy” rating on the name, with an average price target of $96.67 implying nearly 11% upside from here.

That leaves some reasonable room for upside for this stock, and I view Uber stock as a “buy” here. 

Uber has gone from a company with lackluster profitability metrics and uncertain growth prospects to a cash cow type of business trading at a multiple I’d suggest represents solid value. For those thinking long term, this is a company I thing is worth considering right now. Any further investment from Ackman would only help the case for UBER here.