Legendary investor Bill Miller sees new opportunities in the stock market amid this year’s brutal sell-off. It urges investors to take advantage of shares traded at discounted prices. He is also bullish for Bitcoin (BTC), arguing that cryptocurrencies are “misunderstood”. Here are the details…
Bill Miller on the rise for Bitcoin
Speaking at the Forbes/SHOOK Top Advisor Summit at the Encore At Wynn hotel in Las Vegas on Thursday, the former president and chief investment officer of Legg Mason talked about his bets on Bitcoin and Amazon stock. It also identified several companies. He thinks these will benefit from an eventual market recovery. As we reported on Cryptokoin.com, Miller stood out when he was at an investment firm in Baltimore, outperforming the S&P 500 every year from 1991 to 2005.
He eventually started his own company. He currently chairs Miller Value Partners, which has $1.9 billion in assets under management. “Stocks that have been running in the last bull market for the past decade until last November are now being crushed,” Miller said. “Rising interest rates have squeezed growth stocks.” he added. His advice to investors is to buy shares of companies that trade at cheap, discounted prices.
Miller bought Amazon, the company’s favorite IPO stock, in 1997. He has long believed in the company’s booming e-commerce business. It has steadily increased its shares over the past decade. The famous value investor, therefore, does not shy away from recent stock sales.
Miller drew attention to these assets
In terms of stock purchases, it points to those that are strong and currently trading at low prices. These include this year’s worst performers. He points to shares of Cruise Line Holdings, Uber, and Farfetch, for example. Miller also loves Delta Air Lines. It also highlights shares of a company called Clear Secure. Miller estimated that the company’s market value could rise from $3 billion to $30 billion in ten years.
Other notable picks from the famous investor include Silvergate bank, which is also a crypto exchange. Silvergate is regulated by the US Federal Reserve (FED). Chesapeake Energy was also among Miller’s selections. He said the Fed is “psychologically behind the curve.” Miller noted that the central bank “reacts too much to economic data” rather than focusing on real-time or forward-looking indicators.
Miller, an early proponent and buyer of Bitcoin, reiterated his bullish view on the cryptocurrency. He thinks that BTC is misunderstood. While prices are volatile, Bitcoin can provide investors with “an insurance policy against financial disaster,” according to Miller. Miller points out that if the Fed tightens its monetary policy too much, Bitcoin prices will likely outperform most of the market.
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