In this exciting interview with Bill Miller, Preston and Stig gain access to one of the greatest investing minds of all time. Mr. Miller was the former Chairman and Chief Investment Officer for Legg Mason Capital Management where he managed over 75 billion dollars. Today, Miller owns and operates the LMM Investment Company. Through the years, Mr. Miller has been called “The Greatest Money Manager of the Decade” by Morningstar, a member of the “Power 30” by SmartMoney, and a member of the “All-Century Investment Team” by Barron’s.
During the discussion, Mr. Miller specifically addresses the methods he uses to determine the intrinsic value of a business. This provides fascinating insights so the listener can compare and contrast the value of other assets while mitigating risks. Additionally, he shares his opinions and insights on the 35 year bond bubble and what it might do to the value of other asset classes.
Throughout the interview, Mr. Miller shares some detailed analysis on companies like Apple, Amazon, and Tesla. Although many value investors might shy away from a company like Amazon due to the lack of net income, Mr. Miller shares deeper thoughts on why this simple, “bottom-line”, methodology might be flawed.
In this episode, you’ll learn:
- Why Bill thinks some value investors miscalculate the value of Amazon.
- Why billionaire macro investors think that bond yields might go to 6% in 12-24 months.
- If the Enterprise Multiple is the best key ratio to filter stocks by.
- Why Bill thinks Apple was a bad capital allocator and how they have improved since.
- How Bill views the value of Tesla at the end of 2016.
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BOOKS AND RESOURCES
Bill Miller’s Company: LMM Investment Company
Edwin Lefevre’s book, Reminiscences of a Stock Operator – Read reviews of this book.
Adam Smith’s book, The Money Game – Read reviews of this book