20% of Bill Ackman's Personal Portfolio Is Invested in This 1 Stock. Should You Follow Suit?

Billionaire Bill Ackman has attracted attention for his unique investment approach and past successes. The founder and CEO of Pershing Capital Management became known for buying stocks such as Chipotle and Google parent Alphabet at multi-year lows and then profiting when they recovered.

Today, the Ackman stock to watch may be Uber (NYSE: UBER). In the first quarter of 2025, the investment manager purchased a massive position in this stock. Although he trimmed his position by about 1% in Q3, it remains the largest holding among the stocks owned by Pershing Square.

The question for most investors is whether Uber is also a suitable position for them, or whether they should stay away.

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Ackman and Uber stock

Investors should first understand that not all billionaire investments are appropriate for them. This is evident in Warren Buffett's investment history. Even though his company, Berkshire Hathaway, has long held a position in Coca-Cola, the fact that Berkshire has not traded its shares in 31 years may indicate it is not a buy under today's market conditions.

Likewise, investors should not just assume Ackman's interest in Uber stock is a buy signal for them. Indeed, allocating 19% of the fund to a single stock shows a high degree of confidence, particularly since he holds positions in only 10 companies. Knowing that, individual investors should examine the stock themselves and determine its suitability for them.

Nonetheless, average investors can also make a solid argument for buying Uber. It leads the global mobility market and competes worldwide in delivery despite lagging DoorDash in the U.S. Moreover, Uber has launched autonomous driving services in select cities, and other companies in that business will likely turn to Uber's platform to arrange rides. That could become a lucrative revenue source in the coming years.

Uber by the numbers

For now, its current business performs well. In the first nine months of 2025, it generated almost $38 billion in revenue, an 18% rise compared to the same year-ago period. This included an 18% rise in mobility revenue, and the delivery segment increased revenue by 24%. Those segments account for a combined 90% of the company's revenue.

Furthermore, the company limited cost and expense growth to 13%. That helped Uber earn almost $9.8 billion in net income in the first three quarters of 2025, far above the $3.0 billion in the same period in 2024.

Admittedly, a one-time, $4.3 billion income tax benefit accounted for most of that rise, but even without that boost, Uber's profits still grew considerably.

That increase likely has helped the stock's performance. Even though Uber stock sold off in recent weeks along with the market, the stock is up by almost 40% over the last year.

Additionally, it appears inexpensive by just about any measure. Indeed, the P/E ratio of 11 and the forward P/E of 13 may have been affected by one-time charges.

Still, the forward one-year P/E ratio, which measures valuation based on next year's estimated earnings, is 20. That indicates Uber stock is an underappreciated value, much like many of Ackman's past investments. Such conditions indicate Ackman and those who follow him could profit from Uber stock in the same way he drove positive returns from past stock picks.

Should you follow Ackman into Uber stock?

Ultimately, Uber stock looks like an excellent addition to individual stock portfolios.

Admittedly, not everyone has the capital and risk tolerance for stocks like this, and it is fine for those investors to let Uber stock drive by.

However, for everyone else, Uber's mobility and delivery segments continue to drive significant growth for the stock, and the rise of autonomous driving could turn into a lucrative revenue source for the company over time.

Finally, Ackman was likely also drawn to Uber's low valuation, a factor that still applies. That probably means it is not too late for Uber to turn into a low-cost, fast-growing holding for those willing and able to invest in the stock and hold it long term.

Will Healy has positions in Berkshire Hathaway and Uber Technologies. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, Chipotle Mexican Grill, DoorDash, and Uber Technologies. The Motley Fool recommends the following options: short December 2025 $45 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.