Bill Ackman Said High‑Quality Stocks Are Stupidly Cheap. He’s Right.

It’s been an eventful launch for Bill Ackman as his much-anticipated Pershing Square USA (NYSE:PSUS) settled into the public markets. While the initial “slog” out of the gate saw the fund dip toward $42, the widening discount to Net Asset Value (NAV) has turned it into a compelling “value” play on Ackman himself. For investors looking to bet on a manager with a generational track record, the current entry point offers a rare chance to access institutional-grade alpha at a retail discount. As the fund stabilizes, the real question isn’t just about the price, but the “stupidly cheap” assets Ackman is scooping up behind the scenes.

In any case, I think there’s ample opportunity for Ackman to attract more of the retail crowd to Pershing Square USA. While the broad S&P 500 has continued to march higher, the pockets of value within high-quality businesses remain remarkably attractive. A few percentage points above “stupidly cheap” is still a bargain in this macro environment.

Ackman’s spot on. High-quality might be going for a discount these days

But, of course, you’ve got to know where to look. We are seeing a market where notable bargains co-exist with a semiconductor trade that is finally catching its second wind. I think a strong argument could be made that the same high-quality stocks that looked cheap at the start of the year are even more attractive now, despite their recent appreciation, because their earnings power is growing faster than their multiples.

Much of big tech has already shown its hand for the latest quarter. Alphabet (NASDAQ:GOOG | GOOG Price Prediction), a core Pershing Square holding, has proven that AI isn’t just a cost center—it’s a monetization engine. With Google Cloud revenue accelerating and Gemini integrating deeper into the workspace, a trailing P/E of 28.9x still feels incredibly reasonable for a company of this moat’s size and dominance.

What else is stupidly cheap these days? The AI Power Play

While most investors are chasing software, the “stupidly cheap” quality might actually be found in the infrastructure powering the chips. Vistra Corp. (NYSE:VST) is a prime example of high-quality at a discount. As a leader in carbon-free nuclear power, Vistra is becoming the indispensable backbone for massive AI data centers.

While the Mag Seven gets the headlines, Vistra offers a unique “quality” proposition: essential energy infrastructure with massive AI-driven tailwinds, yet trading at a valuation that tech stocks haven’t seen in years. It is a stealthy way to play the AI revolution without paying the “AI tax” found in semiconductor multiples.

Defensive Quality: Hiding in Plain Sight

If you want quality that is even more absurdly underpriced, look toward the “landlords of the desert.” VICI Properties (NYSE:VICI) holds some of the highest-quality real estate on earth, including the Caesars Palace and MGM Grand footprints. Despite 100% occupancy and inflation-protected leases, the stock has been unfairly punished by interest rate volatility.

At current levels, VICI offers a high-moat, high-yield alternative to the tech trade. Like Meta Platforms (NASDAQ:META), which remains attractively priced at roughly 20.0 times forward P/E, VICI represents the kind of “stupidly cheap” quality that eventually wins out when the market stops panicking about macro headlines and starts focusing on cash flow.

The bottom line

Ackman is right on the money. Whether it’s the infrastructure behind AI or the trophy assets in the REIT sector, high-quality businesses are being discounted by a market that is overly focused on short-term noise. By sticking with the names the market isn’t fully respecting yet, Pershing Square USA and savvy retail investors alike may be positioned for a very solid year of performance.