Bill Ackman backed Donald Trump in 2024. Nearly two years into Trump’s second term, the Pershing Square (NYSE:PS) CEO may not agree with everything the president does, but he’s still bullish—particularly on Trump Accounts.
“I have an excellent relationship with the president,” Ackman told Fortune in a recent episode of “Titans and Disruptors.”
Ackman attributed the relationship in part to his willingness to tell the truth, saying he believes Trump respects people who are candid with him.
“I think he’s done a lot right,” Ackman said.
The billionaire investor acknowledged that Trump has made mistakes, but said the president has “generally done a very good job,” despite facing criticism from roughly half the country regardless of the decisions he makes.
Ackman, at odds with recent polling, also praised Trump’s handling of the Iran operation.
Ackman on Trump Accounts, Capitalism
Among the favorite things that Trump has done since taking office is the launch of Trump Accounts, savings accounts for kids set up at birth.
Millions of parents have signed up for the accounts that invest in low-cost broad market index ETFs like the SPDR Portfolio S&P 500 ETF (NYSE:SPYM), iShares Core S&P 500 ETF (NYSE:IVV), iShares Core S&P 500 Total U.S. Stock Market ETF (NYSE:ITOT) or the Vanguard Total Stock Market ETF (NYSE:VTI).
Ackman said he had a similar idea years ago where he suggested that babies in America should get $6,500, an amount that could compound to $1 million.
While Ackman didn’t pitch Trump on this plan, he says the president has done something similar. Ackman also called anyone who refuses to take advantage of Trump Accounts simply because the president’s name is attached to them “stupid.”
“I think he’s done some very, very good things,” he added.
Ackman also acknowledged that policymakers need to do more to help the half of Americans who aren’t investing in the markets through brokerage or retirement accounts.
“Wages cannot compound as quickly as stocks, so everyone needs to participate in the stock market to believe in capitalism,” he argued.
The investor highlighted countries like Mexico and Australia that have advanced their pension plans to make it mandatory that workers put aside money into retirement accounts.
“We can do it here.”
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