Renowned investor Bill Miller III continues to show his unwavering support for Bitcoin BTC/USD despite the cryptocurrency’s market volatility.
What Happened: In a recent interview with Forbes, Miller shared his investment strategies and his views on the current market.
Miller, who began co-managing Legg Mason Value Trust in 1982 and later assumed the role of solo manager in 1990, has a track record of making early investments in hyper-growth stocks like America Online and Amazon.com. His annual performance surpassed the S&P 500 Index for 15 consecutive years from 1990 through 2005.
After parting ways with Legg Mason, Miller allocated 1% of his personal portfolio into Bitcoin in 2012, when the cryptocurrency was valued at around $700. Bitcoin now trades near $60,000 per coin.
Miller’s son, Bill Miller IV, currently manages Miller Value Partners, overseeing approximately $290 million in assets through the Miller Income (LMCJX) mutual fund and two ETFs: Miller Value Partners Appreciation (MVPA) and Miller Value Partners Leverage (MVPL).
In the interview, Miller shared his insights on how he consistently outperformed the market for over a decade and discussed opportunities in the current market. He also spoke about his early life, his time in the Army, and his journey into the world of investing.
Miller highlighted Bitcoin as one of his most successful investments, stating, “I bought Bitcoin (BTC) around $200 at the start, and I think my average cost from 2012 to 2024 is around $700. It's the only economic entity where the supply is unaffected by the demand or the price. All you have to believe is that the demand for Bitcoin will grow faster than the supply.”
“I would suggest that you consider putting 1% of your liquid assets into Bitcoin, and then forget about it. You could lose all your money but look how much it's gone up in the last two years. You have nothing that has gone up as much as Bitcoin in the past two years. I said, let's have lunch together and talk about this thing. Bitcoin is an insurance policy against financial catastrophe, against inflation, against the types of things we saw during the pandemic,” he added during the interview.
He also shared his investment philosophy, emphasizing the importance of understanding what is happening in the market rather than trying to predict future trends. Miller believes that investors need to have an edge, which can come from information, analysis, or behavior.
“The Fed had to flood the system to keep the Treasury market functioning, but nobody had to come in and bail out bitcoin. You can't bail it out. I would predict that within the next three to five years, a majority of advisors will advise people to have 1% to 3% of assets in Bitcoin,” Miller said.
Why It Matters: Miller’s continued support for Bitcoin, despite its market volatility, underscores his belief in the cryptocurrency’s potential. His early investment in Bitcoin, when it was valued at around $700, has proven to be a smart move, with the cryptocurrency now trading near $60,000 per coin.
Miller’s investment philosophy, which emphasizes understanding the market rather than predicting future trends, has served him well throughout his career.
His belief that investors need to have an edge, whether it comes from information, analysis, or behavior, provides valuable insight for those looking to succeed in the investment world.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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