That’s how Bill Miller, a Wall Street legend who earned his status by guiding his fund at Legg Mason to 15 years of beating the S&P 500 SPX, +0.82% , currently views the state of the stock market.
By we, Miller is talking about his Baltimore-based firm Miller Value Partners, where he manages about $2 billion with his two sons.
When he was at Legg Mason LM, +1.78% , Miller managed $70 billion in assets. But that was before the financial crisis hit and completely ravaged his fund, which was top-heavy with financial stocks like Citigroup C, +2.09% and… Bear Stearns.
His current fund is performing well, having outperformed the S&P over the past decade by about 3 percentage points annually, according to Morningstar data. Investors are taking notice, with some $377 million flowing into Miller Opportunity Trust LMOPX, +1.23% last year.
“This is the only time in my 37 years of managing money that we’ve seen inflows despite a market correction,” Miller told Institutional Investor.
He went on to name four of his favorite stocks at the moment: Facebook FB, +2.28% , ADT ADT, +2.20% , Avon AVP, +1.79% and Amazon AMZN, +0.92% , his fund’s biggest holding.
“People missed Amazon because they said it doesn’t make money,” he said. “I don’t let the price of a company’s stock confuse me about a company’s fundamentals. That’s rarely the end of the story.”
At last check, sellers had the upper hand on the Dow Jones Industrial Average DJIA, +0.72% and S&P on Thursday, while the Nasdaq Composite COMP, +1.25% was clinging to positive territory.
