Course 510:
Great Investors: Bill Miller
In this course
1 Introduction
2 Start with Low Prices
3 Determine Fair Value
4 Constantly Reevaluate Fair Value

Bill Miller is not your typical value investor. Known for his phenomenal track record as manager of the Legg Mason Value Fund LMVTX, which beat the S&P 500 index for nine straight years in the 1990s, Miller's stock-picking style defies conventional wisdom. Whereas traditional value investing teaches that stocks should be evaluated on price, Miller argues that stocks should be evaluated by the worth of the underlying business. Some value-investing enthusiasts disagree that Miller is one of their own. While his practice of valuing stocks on the underlying businesses is acceptable, Miller has made some questionable "value" plays--continuing to hold on to America Online AOL and Dell Computer DELL in 1999, for example, even though both stocks had made substantial price gains since he bought them. Critics characterize Miller as a growth investor in value clothing. Here's how the iconoclast invests.

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