Bill Miller Distills The Essence Of Value Investing
In his recent letter to his clients, he explained the thinking behind his investment process and gives a concise explanation of what value investing is all about. Value investing is a philosophy, a whole new way of looking at investing.
Value investors buy businesses not stocks. They have a long-term orientation and are less concern with short-term price movement.
Price and value differ, and when a wide gap exists between the market price and the value, this variant perception becomes the investment opportunity to the value investor. Understanding the gap rather than fundamental analysis per se is the key to profitable investing.
Non-Action is sometimes the best action.
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Embracing value investing as a philosophy gives investors a whole new set of lenses, a different perspective; it is not just a matter of buying low PE stocks or employing other methods for valuing stocks. Bill Miller has the religion, he just practices it differently.
Not A Lemming