A Wall Street Genius’s Final Investment Playbook

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The next morning.

Ackman appeared on CNBC’s flagship program, Squawk Talk.

This program was a financial broadcast aired before the market opened, one that all traders considered essential viewing.

Ackman once again explained his tender offer on the show.

[Allergan is a great company, but their growth strategy has reached its limits. The phase of growth through massive R&D investments has already passed. Now is the time to create immediate and tangible value.]

His argument was clear and concise.

Focus on immediate profits rather than investing for the distant future.

[Over the past five years, Allergan has allocated 17% of its revenue to R&D, yet its annual sales growth has only been around 7-8%. It's not bad, but it's not outstanding either. On the other hand, Valeant has limited its R&D investment to less than 3% and focused its capital on acquiring proven products. As a result, they have achieved an annual revenue growth rate of 23% and an earnings-per-share increase of 50%.]

Ultimately, his message could be summed up as follows:

‘I'm offering you a high-growth stock—why insist on sticking with a low-growth one?’

It was a sweet temptation that provoked shareholders' desires.

[Icahn and Allergan will argue that such growth is impossible. But that’s just an unfounded prediction based on the idea that the numbers are too good to continue. Look at actual performance, not forecasts.]

Armed with numbers, his argument was powerful.

In fact, immediately after the broadcast, Allergan’s stock price surged by 22%.

It was a sign that the market was responding positively.

If more than 41% of the total shares accepted his offer, Ackman would win.

And I was in a position to stop that from happening.

So, the day after Ackman appeared on the show…

I headed to CNBC to appear on Squawk Talk myself.

‘I don’t like being invited second… But given the difference in public recognition between Ackman and me, I had no choice.’

As I walked down the hallway, I spotted a familiar face.

“Sean? I'll guide you to the waiting room. Please come this way.”

The person who greeted me was the booker, the show’s casting coordinator.

I had met this woman once before, during the Theranos case.

“You’re the one from last time. Nicole, right?”

“Huh? You remember my name…?”

"You left quite an impression."

In fact, I had memorized the names of every staff member from all the shows I had ever appeared on.

I paid extra attention to memorizing the casting coordinators.

“That’s amazing.”

It's always a pleasant surprise when a celebrity remembers your name.

As expected, Nicole’s face lit up, and we walked together in a much friendlier atmosphere.

“Sean, you have such a great character! Your unique direct way of speaking has a charm that draws people in. It’s really a natural talent.”

"I wouldn’t say that. Honestly, I still get nervous in front of the camera."

"Really? You don’t look nervous at all!"

"I suppose I need to appear on shows more often to get used to it. So feel free to contact me anytime. You don’t have to go through my secretary—just reach out to me directly. Even if it’s not for a formal request, just to bounce ideas around, that’s fine too."

Even if it wasn’t an official booking, building casual connections with the people in charge would significantly increase my chances of getting invited to shows.

Since media appearances would become a crucial battlefield, these networks were essential.

“Haha, if you say that, I might call you every time a guest cancels!”

“You're always welcome. As long as I’m in New York and my schedule allows it, I’ll do it.”

“Really?”

“Yes, I mean it. I’ll give you my personal number too—"

As we exchanged numbers, we arrived at our destination.

“Here it is. I’ll come back 15 minutes before the live broadcast.”

Inside the waiting room, Allergan’s CEO, Beckett, had already arrived.

However, he didn’t look well.

He was always reserved and expressionless, but today, he seemed even more tense than usual.

"You seem very nervous."

"Nervous, huh…"

Beckett let out a bitter laugh while looking at the floor.

"Now I understand why they call Ackman a master of public persuasion. Watching his broadcast, even I almost found myself convinced. I wonder if we can really beat him…"

“It’ll be fine. This time, I’m here too.”

At my words, Beckett hesitated for a moment before asking cautiously,

"By any chance… does Mr. Icahn have any plans to appear on TV?" 

His question carried the implication: ‘Isn’t it a bit much to go up against Ackman alone?’

When I looked at him directly, Beckett hurriedly added,

"Of course, I acknowledge your influence and reputation, Sean. However…"

He paused for a moment, choosing his words carefully before continuing.

"Your influence mainly appeals to the general public, doesn’t it? But the people we need to persuade now are shareholders—Wall Street and industry investors. I’m sorry, but against that audience, Ackman might have the upper hand…"

It was a reasonable point.

My recognition and influence stemmed from Epicura and Theranos, and I had a strong image of standing for justice.

That might work with the general public, but it was unclear how much it would sway the cold, profit-driven investors of Wall Street.

But I simply smiled confidently.

"It’s fine. The power of public opinion shouldn’t be underestimated. If this issue becomes a matter of national attention, shareholders will have no choice but to consider it as well."

“Huh? A national issue…?”

Beckett blinked a few times in confusion.

He seemed puzzled, wondering what I meant.

After all, hostile takeovers were not typically a topic of public interest, so the chances of this becoming a nationwide issue seemed slim.

But well, creating that kind of situation was exactly what strategy was for.

***

[Going live in 5, 4, 3, 2, 1…]

"Today, we have with us Mr. Beckett, CEO of Allergan, and Mr. Sean Ha, board member of Allergan and CEO of Pareto Innovations. What are your thoughts on Ackman’s tender offer?"

The broadcast had begun.

As planned, Beckett was the first to respond to the host’s question.

Since Allergan’s official stance was his responsibility.

"Ackman’s proposed business model is extremely risky. Think back to the companies of the 1980s and early 90s that obsessed over expansion through mergers and acquisitions—many of them collapsed…"

However…

‘He really doesn’t have the talent for this.’

Listening to Beckett’s argument, I clicked my tongue internally.

I understood his intent, but he was making a fundamental mistake.

‘You're missing the point.'

A public opinion battle is ultimately a fight between narratives.

Victory depends on who presents the more compelling and persuasive story.

In that sense, Ackman’s narrative structure was engaging.

A diligent investor, Ackman, was trying to merge a high-growth company, Valeant, with Allergan, but a villain named Icahn was obstructing the process out of old grudges.

He urged shareholders not to be swayed by this malicious interference and to join his vision.

A popular protagonist, a charismatic villain, the provocative theme of revenge, and the enticing promise of high-growth stocks.

All these elements were more than enough to capture people’s attention.

However.

In response, CEO Beckett was currently attacking Valeant’s high-growth claim as a fabrication, a form of credibility assault.

At first glance, it might seem like an effective strategy…

But debating ‘whether this story is true or not' only meant fighting within the framework of Ackman’s narrative.

‘That won’t do.'

There was only one thing we needed to do here.

‘Create an even more compelling story.'

Yet, right now, Beckett was so focused on the enemy that he wasn’t even bringing up our own story.

"Then, does Icahn also doubt Valeant’s high-growth potential? Sean, you probably know more about this since you’re directly allied with him."

Finally, the question came to me.

But its focus was more on Icahn than on me.

‘So in this issue, I’m just a secondary figure, huh?'

This was all because of Ackman’s narrative.

He had centered his story around the ‘villain' Icahn, leaving little room for me.

I needed to correct that first.

"I'm the one who believes Valeant’s value will decline. Icahn is still skeptical."

"Huh? Skeptical…?"

"Icahn has always been reluctant to get involved in the healthcare industry. It took a lot of convincing from me for him to join, but even now, he’s not entirely certain."

The host looked puzzled.

"So, are you saying that Ackman’s claim—that Icahn is intervening for personal reasons—is false?"

"Exactly. I had to persuade him extensively before he agreed to participate."

"So, in the end, you're the one leading all of this?"

With that one sentence, Ackman’s narrative took a serious hit.

For those who had believed that Icahn was the central figure in this battle, a new perspective had just been introduced.

The host’s eyes gleamed as he asked another question.

"If you took the initiative, why did you choose Icahn as your partner? He has a bit of a… well…"

"A villainous image?"

“Haha, that’s a fitting description. He’s not exactly known for being mild-mannered.”

"There’s only one reason to join hands with a villain. To take down an even bigger villain."

"A bigger villain… Are you referring to Ackman?"

I clasped my hands together and gave a meaningful smile.

"‘Villain' might be too strong a word. However, there’s no denying that both Ackman and Valeant have some suspicious aspects."

"What exactly do you mean by ‘suspicious’?"

"Ackman has always emphasized transparency as an investor, yet, in this case, he secretly formed an alliance with legal risks involved. That’s a departure from his usual behavior, which made me uneasy."

I first portrayed Ackman as a ‘fallen hero,' positioning him as a villain.

Then, I introduced the second villain to the stage.

"Moreover, the fact that his ally is Valeant was also intriguing. Coincidentally, they were a company I had been keeping a close watch on."

"You were watching them?"

"Yes. There’s something odd about their high-growth trajectory. For a company supposedly expanding purely through acquisitions, their growth pattern slightly deviates from my ‘algorithm.' And based on my experience, when something doesn’t fit the algorithm… things usually don’t end well."

The host’s eyes sparkled again.

"You mean, like with Theranos?"

"Exactly. Back then, I started investigating because their movements didn’t align with the algorithm. Of course, I’m not saying Valeant is committing fraud. But I do believe they warrant thorough scrutiny."

With that, my rewritten narrative was complete.

An Orca known for exposing fraud was keeping an eye on a potentially fraudulent company, Valeant.

Then, that company joined forces with a fallen hero, Ackman.

Finding it difficult to take them on alone, the Orca sought help from Icahn, leading to a battle against two villains.

A heroic protagonist, compelling villains, and the provocative theme of fraud.

Now that I had set up this framework, only one step remained.

‘I need to make this a national issue.'

My influence came from the public.

So, instead of keeping this battle confined to Wall Street, I had to turn it into an issue that the entire nation paid attention to.

To do that, I needed a narrative that made it impossible for the public not to take my side.

And the method was…

"I already had doubts about Valeant’s business practices. Their strategy is to drastically raise the prices of newly acquired pharmaceuticals, which is highly problematic."

"But that’s precisely how they achieved significant revenue growth, isn’t it?"

"That’s true. However, since healthcare is directly tied to human lives, profit alone cannot be the priority. Yet, Valeant completely disregards ethical considerations. For instance, they once raised the price of Cuprimine, a treatment for Wilson’s disease, by a staggering 1,000%."

The issue I pointed out was at the core of Valeant’s business model—drug price hikes.

They mercilessly inflated the prices of medicines they acquired.

This alone should have been enough to rally public support.

"That’s… truly unfortunate."

The host’s tone remained indifferent.

There was only a trace of formal sympathy, not genuine concern.

‘Well, that’s to be expected.'

People find it hard to empathize with tragedies that don’t directly affect their daily lives.

Rare diseases, in particular, are often perceived as someone else’s problem.

To turn this into a nationwide issue, I needed one more element.

"Valeant’s drug price hikes across their acquisitions exceed 500%. Now, imagine what will happen if they take over Allergan."

A villain raising the price of rare disease treatments?

That might leave some people uneasy.

But…

What if I included this in the list of drugs they might target?

I looked straight into the camera and made my declaration.

"Botox prices will rise by at least 500%."