In 2019, Bill Miller's Fund returned 119.5% (!) in one single year.
He's one of the only investors who beat the S&P500 for 15 consecutive years.
Here's what you need to know about one of the best value investors ever:
He's one of the only investors who beat the S&P500 for 15 consecutive years.
Here's what you need to know about one of the best value investors ever:
Bill Miller has built his empire based on a simple framework:
▪️Focus on free cash flow
▪️Disregard investing labels
▪️Buy when expectations are low
▪️Focus on free cash flow
▪️Disregard investing labels
▪️Buy when expectations are low
▪️Focus on free cash flow
The value of every investment is equal to the present value of future free cash flows.
It's important that companies earn returns above the cost of capital because otherwise growth destroys value.
The value of every investment is equal to the present value of future free cash flows.
It's important that companies earn returns above the cost of capital because otherwise growth destroys value.
Bill Miller states that free cash flow yield is the most valuable metric to value companies.
The legendary investor calculates his expected return as follows:
Expected return = FCF yield + FCF per share growth
The legendary investor calculates his expected return as follows:
Expected return = FCF yield + FCF per share growth
▪️Disregard investing labels
There is no such thing as value investing or growth investing.
Every investor tries to do the same: buy assets for less than what they're worth.
There is no such thing as value investing or growth investing.
Every investor tries to do the same: buy assets for less than what they're worth.
▪️Buy when expectations are low
A stock's performance depends on fundamentals relative to expectations.
For big winners, the gap between how a company actually performs and how it's expected to perform is the widest.
A stock's performance depends on fundamentals relative to expectations.
For big winners, the gap between how a company actually performs and how it's expected to perform is the widest.
Miller states that his biggest winners tend to be companies that continue to compound value over many years.
Just take Amazon for example.
Just take Amazon for example.
Here you can find Bill Miller's portfolio:
That's it for today.
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If you liked this, you'll love our website were we share all public writings of Bill Miller for free.
Get them here: compounding-quality.ck.page
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