Bill Ackman buys stake in Tel Aviv’s stock exchange in ‘strong vote of confidence’ for Israeli economy | CNN Business (2024)

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Bill Ackman buys stake in Tel Aviv’s stock exchange in ‘strong vote of confidence’ for Israeli economy | CNN Business? ›

The couple have agreed to buy a stake of nearly 5% in the Tel Aviv Stock Exchange (TASE), joining other buyers of around 17 million shares in total, the exchange said in a statement. The TASE expects the sale to generate $65 million in proceeds, which it plans to invest in its technology infrastructure, it said.

Ackman is primarily known as an activist investor, meaning that he buys large stakes in companies and then uses his influence to improve the company's overall performance. This strategy is particularly useful when combined with a value investing approach.

Tel Aviv Stock Exchange Ltd. (TASE) operates as a stock exchange in Israel.

Footnotes / references. Tel Aviv Stock Exchange (TASE)

Understanding the Tel Aviv Stock Exchange (TASE)

TASE is the only exchange in Israel, in which Israeli companies and the government rely on for capital and liquidity. TASE serves as the go-to exchange for hundreds of thousands of investors, including Israeli households.

“You've gotta just accept the fact that what you own can go meaningfully down in value after you buy it, that doesn't actually mean you've made an investment mistake – it's just the nature of the volatility of the stock market.” Ackman's all about ignoring short-term stock market fluctuations, instead preferring to ...

Bill Ackman founded and runs Pershing Square Capital Management, a hedge fund with $16 billion in assets under management. Ackman created Pershing Square in 2004 and rose to fame for his short of bond insurer MBIA and his rescue of mall operator General Growth.

As TASE is the only securities exchange in Israel, where access to it is protected by high regulation and the need for reliable technological infrastructure, Israeli companies and the Israeli government rely on TASE's markets for capital and liquidity.

1953 - The Tel-Aviv Stock Exchange is established

The TASE began operations on September 14, 1953, and trade continued to take place in the offices of Bank Leumi until 1960, when the TASE moved to an independent residence in a covered passageway at 113 Allenby Street in Tel Aviv.

Which country invests the most in Israel? ›

The lion's share of FDI originates from the United States, although in recent years investors from other countries have shown increasing interest in Israel.

In terms of countries, the United States and the Netherlands are the main partners (U.S. firms account for nearly two-thirds of the more than 300 research and development centres established by multinational companies in the country).

In 2022, about 72%, or $21 billion, of foreign investments in Israel came from the US, similar to the percentage in the previous year. Another 8%, or $2.4 billion, was made up of investments from the UK.

While private ownership of land is common (mainly in urban areas), most of the land in Israel (over 90% of the land area) is in the ownership of either the State of Israel, the Development Authority (Rashut Hapituakh, רשות הפיתוח) or the Jewish National Fund.

In 2006, Berkshire purchased an 80% stake in Iscar for $4 billion, an industrial manufacturing company and its first international acquisition. How has the company improved since Buffett's purchase?

Once a company goes public and its shares start trading on a stock exchange, its share price is determined by supply and demand in the market. If there is a high demand for its shares, the price will increase. If the company's future growth potential looks dubious, sellers of the stock can drive down its price.

Price-to-earnings ratio (P/E): Calculated by dividing the current price of a stock by its EPS, the P/E ratio is a commonly quoted measure of stock value. In a nutshell, P/E tells you how much investors are paying for a dollar of a company's earnings.

The stock's price only tells you a company's current value or its market value. So, the price represents how much the stock trades at—or the price agreed upon by a buyer and a seller. The stock's price will climb if there are more buyers than sellers. If there are more sellers than buyers, the price will drop.

The most common way to value a stock is to compute the company's price-to-earnings (P/E) ratio. The P/E ratio equals the company's stock price divided by its most recently reported earnings per share (EPS). A low P/E ratio implies that an investor buying the stock is receiving an attractive amount of value.