We Study Billionaires - The Investor’s Podcast Network TIP247: Legendary Investor Bill Miller (Business Podcast)
6 snips
Jun 16, 2019 This time, legendary investor Bill Miller shares insights from his impressive career, where he famously outperformed the S&P 500 for 15 consecutive years. He discusses the unpredictable nature of markets, especially during geopolitical tensions, and emphasizes the importance of maintaining a long-term investment outlook. Miller critiques traditional value investing, arguing it's outdated, and explores how momentum strategies can enhance returns. With a focus on evaluating stocks, he advocates for understanding intrinsic value over conventional metrics.
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Approaching Market Overreactions
- Abstract away from daily noise and focus on changes from the base case, as news is already priced in.
- Look for opportunities created by fleeting worries like Brexit or trade wars, which are often overblown.
Differentiating Cyclical and Secular Issues
- Distinguish between cyclical issues (like recessions or trade wars) and secular issues (long-term trends).
- Cyclical issues create opportunities because they are fleeting, while secular trends require a longer view.
Micron Technologies Example
- Micron Technologies, currently trading at a discount due to trade war fears, is a good example.
- Despite short-term concerns, the company has strong fundamentals and potential for long-term growth.
