Miller says that a great idea can come from being MORE optimistic about a great biz than market.
Alpha doesn't have to come from buying s**t that turns to diamonds. It can come from higher expectations on a great biz than others.
Think big.
4/ Creating A Bill Miller Strategy
How can we implement this style? Investors can follow Miller's footsteps by:
- Focusing on FCF (now or in future) above all else
- A global style mandate w/out labels
- Paying for those CFs at points of lowest expectations
- LT time horizon
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Why it's bad: "The cost burden that branches place on traditional banks is increasing while their utility is decreasing."
What's better: "In contrast, digital wallets are acquiring millions of customers at a cost 98% lower than that for banks"
2/ Brick & Mortar Retail
Why it's bad: "If square feet were to stabilize at current levels, brick and mortar retail sales would continue
to fall as e-commerce takes share. Roughly
$1 trillion worth of real estate would have to be repurposed by 2025."