If Billionaire Bill Ackman Could Buy and Hold Only 1 Investment Over the Next Decade, Here's What He'd Buy
2026-07-18 08:30
•Adam Levy •The Motley Fool
••• ••• Axe Capital view
Why Ackman Bets on Broad US Equities Over Bonds—And What That Means for SA
Ackman’s call for a decade-long buy-and-hold in US broad-market ETFs challenges local investors to rethink fixed income and hedge with the rand.
Bill Ackman’s preference for broad US equity funds like VOO and VTI over bonds isn’t just about American markets—it’s a lesson for South African investors watching the rand and local rates. He’s right that with rising global interest rates and inflation, bonds offer low real returns and can be volatile. For JSE participants, this means reconsidering the crowd favourite picks like Absa or Nedbank bonds, which may disappoint if rates stay high. Ackman’s US equity focus translates into watching USD/ZAR closely: a weaker rand would support exporters like AngloGold Ashanti and MTN, which benefit from dollar revenues. But be wary—if global growth disappoints or the Fed pivots aggressively, equities and the rand could suffer. I’d watch currency moves before paying up for local equities, especially in sectors sensitive to dollar strength. Buying just one investment is rare wisdom but depends heavily on macro factors that don’t always stay stable. this is just my opinion and not financial advice
I’d watch the USD/ZAR carefully and selectively buy exporters like AngloGold Ashanti on rand weakness, while trimming exposure to local bonds. Avoid locking in fixed income at current yield levels until inflation and rates show clear signs of easing.
- USD/ZAR
- AngloGold Ashanti
- Absa bonds
- Fed rate hikes triggering global growth slowdown
- Rand strengthening sharply hurting exporters
6/10
Billionaire hedge fund manager Bill Ackman recommends investing in a broad equity index fund as the single best investment to buy and hold for the next decade, citing superior long-term growth potential compared to other asset classes. He specifically suggests funds like the Vanguard S&P 500 ETF or Vanguard Total Market ETF for their liquidity and diversification benefits. Ackman advises against bonds due to their historically lower returns and poor near-term outlook amid rising interest rates and persistent inflation.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Adam Levy
Categories: Macro, Inflation, Equities
Tickers: VOO, VTI, BND
Sentiment: Mixed - Ackman explicitly recommends this as an ideal equity index fund for long-term buy-and-hold investors, citing its liquidity, low expense ratio (0.03%), and broad market exposure. Presented as an alternative broad-market index fund recommendation alongside VOO, offering similar benefits of diversification and liquidity for long-term investors.
Keywords: index funds, long-term investing, equity markets, bonds, interest rates, diversification, hedge fund strategy
Insights:
- VOO: Positive: Ackman explicitly recommends this as an ideal equity index fund for long-term buy-and-hold investors, citing its liquidity, low expense ratio (0.03%), and broad market exposure.
- VTI: Positive: Presented as an alternative broad-market index fund recommendation alongside VOO, offering similar benefits of diversification and liquidity for long-term investors.
- BND: Negative: Ackman advises against bonds as a primary investment due to historically lower returns than stocks, poor near-term outlook with rising interest rates, and inflation concerns that could suppress returns over the next decade.