Hedge funder Bill Ackman announced a revised proposal for Howard Hughes Holdings ( HHH ) in an effort to create a modern-day Berkshire Hathaway holding company and copy the conglomerate style of legendary investor Warren Buffett.

What Happened: Ackman upped his bid for 10 million newly issued shares of Howard Hughes from $85 per share to $90. His goal is to turn the firm into a diversified holding company.

The new buyout offer replaces the previous proposal from Jan. 13, which has been withdrawn.

Under the terms of the buyout, Ackman’s Pershing Square would own 48% of the Howard Hughes shares outstanding. That’s up from the 37.6% stake Pershing currently owns.

Pershing Square would not sell any of its Howard Hughes shares and hold the stock for the long term. Howard Hughes would continue to have an independent board of directors, which would include some Pershing Square directors.

Ackman would become Chairman and CEO of Howard Hughes Holdings ( HHH ) under the new proposal.

"The $900 million cash infusion will enable HHH to immediately begin to pursue the acquisition of controlling interests in public and private companies as part of its new strategy of becoming a diversified holding company," the proposal said.

The Howard Hughes Corporation subsidiary would be unchanged under the proposal.

Ackman and Pershing Square will host an X Live broadcast at 9 a.m. ET Feb. 19 to discuss the planned proposal. The live event will include a question-and-answer segment.

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Why It's Important: Ackman tweeted that the offering will help Howard Hughes become a conglomerate similar in style to Berkshire Hathaway.

"We will make available the full resources of Pershing Square to HHH to build a diversified holding company, or one could say, a modern-day Berkshire Hathaway," Ackman said.

Ackman said the company will invest in private and public companies that meet Pershing's "criteria for business quality."

The investor said Howard Hughes Corporation will continue its plan to own "small cities."

"Owning small and growing MPCs that will eventually become large cities in the best pro-business markets in the country is a great long-term business. It's a lot better than a dying textile company."

In an earlier tweet Tuesday, Ackman praised Buffett’s investing style. Buffett, who has led Berkshire Hathaway for decades, transformed the company from a textiles company into one of the most valuable companies in the world.

"I first learned about Warren Buffett from a college classmate when I was 20 years old. Four years later, I read my first Berkshire Hathaway shareholder letter and I was inspired to become an investor."

Ackman noted how Buffett bought control of Berkshire and redirected the company's cash into segments like insurance, banking, manufacturing, railroads and a securities portfolio.

The proposal will see Howard Hughes Holdings ( HHH ) follow similar shareholder-oriented principles used by Buffett's Berkshire Hathaway.

The investor and Pershing Square CEO said the appeal to Berkshire was investors could afford one share and see their investment compound in value over time.

"If you decide you like what we are doing, we welcome you to join us as a partner, and buy a share or two."

HHH Price Action: Howard Hughes Holdings ( HHH ) stock is down 4.4% to $77.15 in after-hours trading Tuesday. The stock closed up 6.8% to $80.60 Tuesday with a spike in price after Ackman's first tweet.

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