We differ from many value investors in being willing to analyze stocks that look expensive to see if they really are.
We own low PE and we own high PE, but we own them for the same reason: we think they are mispriced. It was in the mid-1990s that we began to create portfolios that had greater factor diversification, which became our strength. Most investors tend to be relatively undiversified with respect to these valuation factors, with traditional value investors clustered in low valuations, and growth investors in high valuations. We have high P/E and low P/E, high price-to-book and low- price-to-book. We own a mix of companies whose fundamental valuation factors differ. We construct portfolios by using 'factor diversification.'. The question is not growth or value, but where is the best value. Sometimes growth is cheap and value expensive. Value investing means really asking what are the best values, and not assuming that because something looks expensive that it is, or assuming that because a stock is down in price and trades at low multiples that it is a bargain. Miller has reiterated his investment philosophy multiple times in letter to shareholders, writing this in his 2006 letter: Miller is considered a value investor who believes that "any stock can be a value stock if it trades at a discount to its intrinsic value". He also invested heavily in Bitcoin and Valeant Pharmaceuticals. Miller was an early investor in Amazon and invested heavily when most analysts were skeptical. He turned over the Value Trust to Sam Peters in 2012, ending his relationship with Legg in 2016. In 2007, he was elected the chairman of the firm as well as its chief investment officer, running the Legg Mason Value Trust mutual fund.
Miller received his CFA designation in 1986. He joined Legg Mason Capital Management in 1981 as a security analyst. Baker Company, a major manufacturer of products for the steel and cement industries. Prior to joining Legg Mason in 1981, he served as treasurer of the J.E. program at Johns Hopkins University while working part-time in accounting. Miller then pursued graduate studies in philosophy in the Ph.D. While serving in the military as a First Lieutenant, Miller received the Army Commendation Medal for meritorious service while assigned to the 502d U.S. He then graduated with honors from Washington and Lee University in 1972 with a degree in economics. Miller attended Miami Palmetto Senior High School, graduating in 1968. His father worked as a terminal manager for a trucking company. He is the portfolio manager of the former Legg Mason Opportunity Trust mutual funds, now housed at his own firm Miller Value Partners.īill Miller was born in 1950 in Laurinburg, North Carolina. He served as the chairman and chief investment officer of Legg Mason Capital Management as well as the principal portfolio manager of the Legg Mason Capital Management Value Trust. Miller III (born 1950) is an American investor, fund manager, and philanthropist. His management of a portfolio that beat the S&P 500 Index from 1991 to 2005, consecutively.
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