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Bill-Miller-on-MiB.md

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Bill Miller on MiB

1991-2005 beat S&P 15 years running

Style -- "Long term value with contrarian overlay"

Process

Find companies intrinsic business value (present value of future cash flows).

Free cash flow yield (under a chequebook account approach). We want min of 10%, higher the better.

Different from classes Graham and Dodd?

These pioneers used accounting metrics. Once commonplace, and replicable, they lost their signal value.

How important is growth?

Growth vital input to calculation of value. Faster growth, better company.

How to estimate/forecast growth?

Step up a level, get the macro view, and account for that (normalize for high growth). Industry economics, sector economics, mgmt quality.

Bill Miller on the Streak

Luck.