Bill Miller’s basic problem is that he doesn’t have a clue about how to value businesses and never has. He’s all about reversion to the mean, go opposite the crowd, etc. It worked when the Greenspan put was in effect to keep bad companies from going under and the Legg Mason sales force was shoveling new money in for him to average down on his many losers.

Amazon is often cited as evidence of Miller’s “skill”. Amazon is trading for less than what it was when Miller first bought it 10 years ago. So he averaged down on it like a maniac while it dropped 90% from his first purchase. Is that skill or just stubborn arrogance?

Now he has no captive sales force and his shareholders have finally had enough so he’s having to sell his dogs into a down market because of an ongoing stream of redemptions. No doubt there are hedge funds short-selling Miller’s book. He is done.

How does somebody who can allegedly value businesses end up in ALL the following stocks?

Enron
WorldCom
Eastman Kodak
Countrywide Financial
Bear Stearns
Freddie Mac

I’m looking forward to Miller’s latest litany of excuses for his miserable performance in the upcoming Q2 letter.