Is Howard Hughes Holdings (HHH) Stock The Next Berkshire Hathaway?

When Bill Ackman makes a move, the market pays attention. And right now, his sights are set on Howard Hughes Holdings (NYSE: HHH) — a company he’s been deeply involved with for over a decade. 

But this isn’t just another real estate bet.

Ackman isn’t just looking to own more of Howard Hughes. He wants to transform it into a holding company modeled after Berkshire Hathaway. He’s offering $85 per share to take HHH private, a 38% premium over its recent trading price. 

If the deal goes through, Ackman’s hedge fund, Pershing Square, would own between 61% and 69% of the company, setting the stage for a major shift in how HHH operates.

Currently, HHH has a Zen Rating of A or “Strong Buy:” 

But before we get into what our models see in it, let’s see why Ackman is so bullish. (And for a detailed explanation of why “smart money” moves matter, read this article.)

Why Ackman Loves Howard Hughes

Ackman has been bullish on Howard Hughes for years, and for good reason:

Real Estate With a Moat – HHH is a land and property developer. It specializes in master-planned communities — entire, self-sustaining towns built from the ground up. These projects create long-term cash flow and are nearly impossible for competitors to replicate.

Undervalued Assets – Despite a strong real estate portfolio, HHH’s stock has underperformed for years. Ackman believes its intrinsic value is much higher than what the market currently reflects.

Steady Cash Flow for Acquisitions – Ackman sees HHH as a platform for compounding capital, much like Berkshire Hathaway. The plan? Use real estate profits to buy and hold high-quality businesses, creating a diversified conglomerate that can weather any economic cycle.

Is This Ackman’s Berkshire Moment?

Ackman has never been shy about his admiration for Warren Buffett. Now, he’s putting that philosophy into action. 

Now he essentially wants to turn Howard Hughes into his version of Berkshire Hathaway — a permanent capital vehicle that can invest in both real estate and operating companies for the long haul.

This structure would also give Pershing Square (Ackman’s hedge fund) better access to capital, allowing it to raise money at lower costs while maintaining a long-term investment approach — something hedge funds typically struggle with.

What Do We Think of HHH?

Currently, HHH stock scores A ratings for both Growth and Sentiment. 

HHH's revenue is forecast to grow at an exceptional rate of 27.96% per year.

Growth potential drives stock prices over the long term, which is why the Zen Rating assigns the highest weight to growth-related factors.

To learn about how our Growth model works, click here. 

For Safety, we assign HHH stock a B and it scores a C across the board in our other Component Grades. 

To see all the Zen Rating Component Grades for HHH, click here.

What’s Next?

Ackman’s offer still needs board approval, and there are some hurdles to clear. But if it goes through, Howard Hughes could become one of the most interesting investment vehicles on the market — one that gives investors exposure to both high-quality real estate and Ackman’s investment acumen.

For investors looking for a long-term compounding machine with a Buffett-style playbook, HHH is an intriguing stock to watch. 

Click here to add HHH stock to your watchlist.

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