The Acquirers PodcastPublished 2026-11-05
“Small Value is Back. Is Mag 7 Finally Rolling Over?”
$HHHBullish
AI summary · The speaker owns HHH, sees it as cheap given current real estate and sees upside in Ackman's plan to sell properties and reinvest in a conservatively run Berkshire-style insurer. He calls the 20% return on shareholders' equity target ambitious since most insurers do not achieve it.
the story of "Howard Hughes " is interesting because it was a spin-off company from "General Growth Properties" a long time ago.
What they did was acquire a relatively small insurance company. Essentially, they have hired a very impressive team to run the insurance company, and the idea is to gradually sell off the properties and invest the proceeds in the insurance company, then follow the Berkshire approach where they have already sold off their fixed-income investments , and are now converting much of it into common stock, but with very conservative leverage ratios .
They believe they can achieve a 20% return on shareholders' equity.