Letter to Shareholders in the 2024 Annual Report

Citations · 6

• “In 2024, Pershing Square Holdings generated solid but not spectacular NAV performance of 10.2%, and a 8.3% total shareholder return because of the widening of PSH's discount to NAV”

  p#2 · confidence 95%

• “Many investors interpret stock price volatility as an important measure of underlying business performance even though it is an unreliable indicator.”

  p#11 · confidence 92%

• “The combination of a seemingly unending increase in index fund ownership – which removes a large amount of stock from the public float – and the growing amount of capital managed by so-called "pod shops" – which use large amounts of leverage and have limited tolerance for volatility – accentuates stock price volatility”

  p#10 · confidence 90%

• “Last year, we sold a 10% primary interest in Pershing Square Holdco, L.P., a newly formed parent entity to Pershing Square Capital Management, L.P. (PSCM), to a group of sophisticated investors including institutions, family offices, and alternative asset company founders, for $1.05 billion. We also established an independent board comprised of our new investors and independent directors.”

  p#18 · confidence 95%

• “Day One Investors have grown their equity investment at a 15.9% compounded annual NAV return over the last 21 years, compared with a 10.0% return had they invested in the S&P 500 over the same period. With the magic of compounding, our 15.9% compound annual NAV return translates into a cumulative total NAV return since inception of 2,172% versus 654% for the S&P 500”

  p#1 · confidence 95%

• “In recent quarters, Uber's share price declined as the market became concerned about the future state of ridesharing in the context of autonomous vehicles. While this theoretical risk is mainly applicable to Uber's US ridesharing business (approximately ~25% of Uber's gross bookings value), it has had the effect of significantly compressing Uber's valuation multiple”