Friday, December 9, 2011

Bill Miller and Dip Buying

There is an interesting observation in Barron's about mutual fund manager Bill Miller:

“The secret to Miller’s success was that he never gave up on a stock. The more it tumbled in price, the more he bought. So when the stock finally turned upward, Miller held a boatload of shares,”
I've written about Bill Miller before as an example of the naive buy-the-dips approach to investing taken to its logical conclusion.

2 comments:

Eric said...

If you sell before the bottom of the next dip you'll be doing OK. Stops do that for you automatically. After a little while of getting stopped out you'll get the idea. Or should.

Stagflationary Mark said...

Investors need a money manager whose style contemplates severe bear markets, otherwise they are doomed to severe capital impairment.

I have been contemplating it!

Picture a plane crashing into mountain with full afterburners on.

I have been picturing it!

Since you shared quotes, I feel the need to share one of my own.

Yes. Well, they're probably experts at building things, whereas I'm an expert at blowing them up, and you can take it from me that one would need a good eight hours to make a decent job on that bridge. - Miller, Force 10 from Navarone

D'oh! ;)