Bill Miller on Large Cap Stocks

Bill Miller from Legg Mason has one of the strongest investment track records in the mutual funds business.

True, the last couple of years were not kind to Miller, as he lagged the S&P by a wide margin due largely to an ill-timed bet on financial stocks. Prior to this period, however, Miller's fund had outperformed the S&P 500 for something like 14 consecutive years.

So he' s worth a listen

And what is Bill Miller thinking now?

In his most recent quarterly newsletter to Legg Mason shareholders indicate, he thinks that large cap, dividend-paying stocks are the opportunity of a lifetime. Here's an excerpt, with the complete link below:

The point here is simple: U.S. large capitalization stocks represent a once in a lifetime opportunity in my opinion to buy the best quality companies in the world at bargain prices. The last time they were this cheap relative to bonds was 1951. I was 1 year old then, but did not have then sufficient sentience or capital to invest. I do now, and if you are reading this, so do you.

Miller's point is that investors are diving into bonds with record low yields (see my post yesterday), ignoring the fact that the dividends from similar corporate entities are yielding considerably more. And, unlike bonds, stocks at least offer the opportunity to have some capital growth as well.

Here's the link:

http://www.leggmason.com/individualinvestors/documents/economic_perspectives/D9368-Bill_Miller_Commentary.pdf