Miller’s reputation was cemented by the performance of his fund Legg Mason Capital Management Value Trust, which beat the SP 500 for 15 consecutive years from 1991 to 2005.
Here are the top nine quotes, slightly edited for clarity.
On Volatility and Federal Reserve Policy
1. “We are in the early stages of regime change. So from a set of Fed easing, dovish and bond-buying policies to a it’s the contrary. This raises the possibility that they could make a mistake. I mean, they’re not perfect, obviously.”
2. “So what happens with volatility is you get a certain probability of error, of recession, in price, and that’s something you’re going to have to live with for a while. ”
3. “The economy is very strong. Unemployment is low, many companies’ profits are at record highs, state tax revenues are rising, well above expectations. All of these things indicate that the economy is strong and that a recession is not on the horizon.
4. “Meta is trading in a business that has lower EBITDA than IBM, and is expected to continue to grow. And I think, at these prices, that represents attractive value. We’ve had him for a long time, so it’s not a new position for us, but we certainly don’t want to sell him here.” – Facebook’s parent company Meta is down 31% for the year, after weak earnings.
5.”Amazon is down over the past 12 months, even though all parts of their business have grown. If you look at Amazon’s web services, and you only look at the advertising business, and you just score them against what other similar public companies are doing, then you get almost all of the value of Amazon in these two businesses alone.”
6. “We bought Peloton on the IPO. We sold it very close to the highs. My colleague Samantha actually talked about buying it again when it dipped below the IPO price on the stock exchange. We missed it, at least on this trade, but it’s a it’s on our radar here.”
On his bitcoin investments
7. “I put a few percent of my net worth in it a long time ago and it’s become half of my net worth. Now it’s less than that because it’s halved since November. But it’s still a very big position.”
8. “Bitcoin is insurance against financial disasters, as seen in Lebanon or Afghanistan and many of these other countries.”
On the rotation towards value stocks
9. “The market has passed to value. I think he still has a lot to do, especially if rates keep rising, if the curve moves up, if inflation is more rigid than what I think the market thinks is likely to be, then it’s good for the value.”