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

Like any value investor, Miller begins by screening for stocks with low price multiples. That's how he found Dell. He bought shares of Dell back in 1996 when the computer maker's shares were getting beat up by the competition and trading for a measly six times earnings. By the end of 1999, Dell's valuation was twice that of the average computer maker: It traded for 60 times earnings, versus an industry average of about 30 times earnings.

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