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As markets wobble near correction territory in 2026, billionaire investor Bill Ackman is leaning in — not pulling back.

The founder of Pershing Square Capital Management says many high-quality stocks are trading at steep discounts, calling this “one of the best times to buy quality (1).” His message to investors: ignore the noise and focus on long-term opportunity.

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For instance, Ackman has singled out two controversial names — Fannie Mae and Freddie Mac — as “stupidly cheap,” suggesting they could deliver returns of up to 10 times their current value (1).

Here’s what’s behind the bold claim reported in Business Insider — and what everyday investors should consider before following his lead.

Despite ongoing volatility, Ackman believes the market is mispricing strong businesses. In a post on X from March 29, he argued that “some of the highest quality businesses in the world are trading at extremely cheap prices (2).”

His claim can be attributed to macro fears, media narratives and geopolitical uncertainty as factors pushing valuations down. When fear dominates market sentiment, even solid companies can become undervalued. Such situations, like the current one, can create asymmetric opportunities where potential upside far outweighs downside risk.

That’s why many value investors look for the moments when markets overreact, driving prices below their intrinsic value.

What’s notable is how confident Ackman is in the current setup. He’s not just suggesting selective buying — he’s framing this as a rare window of opportunity.

Market dips like this can create rare buying windows, with many value stocks suddenly trading at discounted prices. The catch? Spotting the real bargains — instead of the value traps — isn’t always easy.

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Read More: Taxes are changing under Trump’s ‘big beautiful bill’ — 4 reasons why retirees can’t afford to waste time

Ackman’s most eye-catching picks are Fannie Mae and Freddie Mac, two government-backed mortgage giants.

Both stocks have dropped roughly 40% this year, but Ackman believes that decline has created a massive buying opportunity (1).

His argument largely hinges on how these companies have been treated since the subprime mortgage crisis. After 2008, both firms were placed under government conservatorship (3), with profits largely directed to the U.S. Treasury.

Ackman has long argued that this arrangement unfairly suppresses shareholder value — and that policy changes could unlock significant upside.

If those changes materialize, according to him, the stocks could surge dramatically, potentially delivering 10x returns from current levels.

He’s not alone in this view.

Michael Burry — best known for predicting the 2008 housing crash — has also turned bullish on the two companies (1). In late 2025, Burry disclosed sizable positions in both Fannie and Freddie, noting that while they were once major contributors to the housing crisis, shifting political and regulatory conditions have changed the investment case.

“Cannot emphasize enough how rare this is in this market,” Burry wrote on X (4) in response to Ackman’s comments.

While the upside sounds compelling, this is far from a typical stock pick.

Fannie Mae and Freddie Mac are deeply tied to government policy, making them highly unpredictable investments. In this way, their future depends less on traditional business performance and more on regulatory decisions, legal outcomes and political priorities.

That creates a level of uncertainty most everyday investors aren’t used to.

Even Ackman’s thesis relies heavily on potential policy shifts — not guaranteed developments. If those changes don’t happen, the stocks could remain suppressed for years.

There’s also historical baggage to consider. Both companies were at the heart of the subprime mortgage crisis, and that legacy still shapes their structure today.

Investors like Bill Ackman and Michael Burry can afford to take major risks. Ackman’s fortune is estimated at roughly $9 billion by Forbes (5), while Burry’s wealth is believed to be around $300 million (6).

For everyday investors, though, gambling on risky stocks isn’t always the smartest move. That’s why Warren Buffett often recommends a far simpler approach — investing in index funds.

“In my view, for most people, the best thing to do is to own the S&P 500 index fund,” he said at Berkshire Hathaway’s 2021 annual shareholders meeting (7).

However, you also don’t need to invest huge sums all at once. Even small, consistent contributions — like spare change automatically invested from everyday purchases — can steadily grow over time through compounding.

For instance, investing $20 each week for 30 years can help you save over $179,000, assuming it compounds at 10% annually (8).

If those kinds of returns are too tempting to pass up, platforms like Acorns allow you to turn your spare change from everyday purchases into an investment opportunity.

Signing up for Acorns takes just minutes: All you have to do is link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio managed by experts at leading investment firms like Vanguard and BlackRock.

With Acorns, you can invest in an index ETF with as little as $5 — and, if you sign up today and set up a recurring investment, Acorns will add a $20 bonus to help you begin your investment journey.

Here are a few practical takeaways from Bill Ackman's strategy:

Volatility can create opportunity: Market uncertainties often push strong companies to discounted levels. Long-term investors can use these periods to buy quality assets at better prices.

Focus on fundamentals: A good tip is to make decisions based on long-term growth potential of stocks to help cut through the noise.

Be cautious with asymmetric bets: If you invest in high-upside opportunities, they should only make up a small portion of a diversified portfolio.

Diversification still matters: Even if one investment has huge potential, spreading your portfolio across different sectors and assets should be your core strategy.

When it comes to diversifying your portfolio, alternative assets play an important role, as some tend to move differently from the stock market — helping smooth out volatility over time.

Gold is a prime example. This safe haven metal has jumped more than 50% over the past year — briefly crossing $5,000 per ounce in January 2026 — while the S&P 500 gained about 20% during the same period (9).

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.

To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.

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— With files from Monique Danao

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Business Insider (1); @BillAckman (2); U.S. Federal Housing (3); @michaeljburry (4); Forbes (5); Sophisticated Investor (6); CNBC (7); Acorns (8); APMEX (9)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.