Q: Why is dollar cost averaging such a key strategy for you? A: Our approach can be summarized with the phrase "lowest average cost wins." For most investors if a stock starts behaving in a way that is different from what they think it ought to be doing—say, it falls 15 percent -— they will probably sell. In our case, when a stock drops and we believe in the fundamentals, the case for future returns goes up. Think of it like this: If the underlying business is worth $40, and the stock is $20, my rate of return is 100 percent. The lower the shares go, the higher the future rate of return and the more money you should invest in them.
An even dozen -— that's the number of years Bill Miller's Legg Mason Value Trust fund has beaten the S&P 500. And this year he's up a market-topping 24 percent. No fund manager has had a more remarkable streak. Behind this success is Miller's willingness to buy stocks like Tyco and Waste Management when other managers are running scared -- and then continue buying all the way down. (Editor: This is a 2003 interview on Bill Miller.)
Read the complete interview
An even dozen -— that's the number of years Bill Miller's Legg Mason Value Trust fund has beaten the S&P 500. And this year he's up a market-topping 24 percent. No fund manager has had a more remarkable streak. Behind this success is Miller's willingness to buy stocks like Tyco and Waste Management when other managers are running scared -- and then continue buying all the way down. (Editor: This is a 2003 interview on Bill Miller.)
Read the complete interview
