While Miller endorses the concept of value investing, which entails concentrating on undervalued stocks with robust fundamentals, he refrains from labelling himself as a value investor. Bill Miller’s method of computing expected return through the use of free cash flow yield and growth is undeniably intuitive and perceptive. Ultimately, Miller sought companies with a free cash flow yield surpassing the market’s hurdle of 6-8%, maintaining his investment in them as long as they aligned with his overarching investing strategies. Diverging from his peers and predecessors, Miller never adhered to the traditional definition of value investing. As the world persisted in emphasizing value investing, Miller adhered to his distinctive approach for 15 years, consistently generating profits.

Source: Mint December 13, 2023 15:36 UTC