One of the most closely followed investors on Wall Street is Bill Ackman, the CEO of Pershing Square Capital Management. Last year, it was revealed the hedge fund manager opened a position in (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of internet search tool Google and video sharing platform YouTube.

Ackman's investment strategy is quite simple. While other institutional investors tend to own several stocks in each sector, Ackman instead identifies a small cohort of businesses that he believes are overlooked and potentially undervalued -- making it easy to understand which stocks he appreciates over the competition. For this reason, Ackman's stake in Alphabet represented something greater than just a new position. Rather, it signaled his conviction in the company's position among artificial intelligence (AI) leaders. But why?

During a recent interview with David Rubinstein, a co-founder of private equity giant Carlyle, Ackman revealed that he thinks investors can buy Alphabet's AI business "for free." While this is quite the conjecture, I think he's right.

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Source Fool.com