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Bill Miller: The Investor Who Beat the Market for 15 Consecutive Years Redefines Value Investing

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Bill Miller: The Legendary Investor in Bitcoin and Amazon

Background and Investing Approach

Bill Miller, renowned for once outperforming the market for 15 consecutive years, is not only a highly regarded value investor but also an early investor in Bitcoin and Amazon. Miller gained recognition for his management of the Legg Mason Capital Management Value Trust, which surpassed the S&P 500 each year from 1991 to 2005. A significant turning point in his career came during the financial crisis, when he faced substantial losses and witnessed a mass exodus of assets from his fund. This experience led him to establish Miller Value Partners in 2012, where he redefined traditional value investing principles.

Unconventional Investment Strategies

Miller challenges the conventional notion that stocks with high price-to-earnings (P/E) ratios are exclusively growth stocks. Instead, he believes these stocks can also be mispriced and undervalued, representing potential investment opportunities. One of Miller's notable successes in this regard is his investment in Amazon. Over 20 years ago, he initially purchased shares of the e-commerce giant, resulting in a stake that grew so significantly that, in 2021, he claimed to be the largest shareholder after founder Jeff Bezos and his ex-wife, MacKenzie Scott.

Bitcoin: A Lucrative Investment

In addition to Amazon, Miller reaped substantial profits through his investments in Bitcoin. Starting his Bitcoin buying spree when the digital coin was valued at around $200 to $300, Miller's holdings multiplied exponentially over the years. At its peak in 2021, when Bitcoin reached approximately $69,000 per coin, Miller briefly joined the billionaire club. These profitable investments highlight Miller's ability to identify groundbreaking opportunities within the market.

Current Success at Miller Value Partners

Miller Value Partners continues to thrive under Miller's leadership. The flagship fund, Miller Opportunity Trust (LMNOX), manages around $1.4 billion in assets and achieved a remarkable 31.6% rally by July 26th of this year. This performance positions the fund in the top percentile within its category, according to Morningstar. Amazon represents the largest holding in the fund's portfolio, accounting for 5.4% of its total weighting. Furthermore, the portfolio includes notable travel industry names like Expedia, Delta Air Lines, and Norwegian Cruise Line, along with prominent Big Tech stocks such as Alphabet and Meta.

A Succession Plan for the Future

As Bill Miller enters his 70s, he has implemented a succession plan for the management of his funds. In early 2022, he announced that his long-time co-manager, Samantha McLemore, would assume the role of managing the Miller Opportunity Trust through her firm, Patient Capital. Additionally, Miller's eldest son, Bill Miller IV, will take on the position of lead manager for the Miller Income Fund. This succession plan ensures that Miller's investing legacy will continue to thrive in the years to come.

Conclusion: Bill Miller's Success and Its Implications for New Businesses

Bill Miller's success as an investor, particularly his early investments in Bitcoin and Amazon, offers valuable lessons and insights for new businesses. Miller's ability to challenge conventional investment strategies and identify unique opportunities has propelled him to legendary status in the investment world. For new businesses, Miller's story emphasizes the importance of thinking outside the box and being open to unconventional approaches. Just as Miller found value in high-potential stocks with high price-to-earnings ratios, entrepreneurs should be willing to explore uncharted territories and embrace innovative ideas that may offer significant growth potential. Miller's investments in Bitcoin and Amazon demonstrate the power of foresight and seizing opportunities early on. New businesses should stay informed about emerging trends and technologies, as being an early adopter can provide a competitive advantage and potentially lead to exceptional returns. Furthermore, Miller's succession plan highlights the importance of planning for the future and ensuring the continuity of success. New businesses should consider implementing solid succession plans that ensure leadership and expertise can be transferred smoothly, allowing the company to thrive even as key individuals transition to different roles or retire. In conclusion, Bill Miller's legendary investing career, marked by his success with Bitcoin and Amazon, serves as an inspiration and offers valuable insights for new businesses. By challenging norms, embracing innovation, and planning for the future, entrepreneurs can position themselves for long-term success and potentially achieve outstanding results in their respective industries. Article First Published at: https://www.cnbc.com/2023/07/27/bill-miller-who-beat-the-market-for-15-years-rethinks-value-style.html

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