Despite the 2022 market downturn, legendary value investor Bill Miller remains bullish on his two favorite investments: Amazon and Bitcoin.

In a recent interview, former Legg Mason boss called cryptocurrencies “misunderstood” and referred to Bitcoin as an “insurance policy against financial disaster.”

remaining patient

Miller expressed his views on the market in a conversation with Marvin McIntyre, managing director of Morgan Stanley’s Private Wealth Management, at the Forbes/SHOOK Top Advisor summit on Thursday.

On the one hand, the investor recognized that companies that have performed well over the past decade are now being crushed in the face of an aggressive Federal Reserve. On the other hand, he said that this represents a great opportunity to buy more shares of the company at a low price.

“If your time horizon is longer than a year, you should do very well in the market,” Miller said.

During his time at Legg Mason, Miller was well known for having beaten the stock market for fifteen years in a row, from 1991 to 2005. He is also known for personally purchasing Amazon stock during its initial public offering in 1997.

In an interview last year, Miller revealed that around 50% of his net worth was linked to Amazon. The other 50%, he saidI was in Bitcoin.

On Thursday, the former president called Bitcoin “an insurance policy against financial disaster, with “limited consequences” during tough market periods, as it is “not connected to the rest of the financial system.”

Bitcoin is down 70% from its all-time high in November, but it worked relatively well against most other financial assets in the third quarter. While it briefly fell to $18,000 on slightly disappointing CPI figures this week, it has since recovered to $19,000. Miller said that if the Fed continues to tighten, Bitcoin is likely to continue to outperform in this way.

The investor backed up his argument with quotes from Warren Buffett, John Templeton, and Leo Tolstoy:

“Be greedy when others are afraid”, he said, as well as “The moment of maximum pessimism is the best moment to buy”, and “The two most powerful warriors are patience and time”.

Miller’s Bitcoin Thesis

Miller’s confidence in Bitcoin too He showed resilience in May, when the entire crypto market crashed in the wake of the Terra crash. That said, he confessed that he was forced to sell some of his Bitcoin at the time to meet margin calls.

Miller frequently has highlighted Bitcoin’s potential as a global reserve asset, especially after Russian sanctions took effect and its ruble began to collapse in March. However, he claimed that altcoins do not share this property and were more akin to “venture investments”.

In addition to Bitcoin and Amazon, Miller suggested Silvergate Capital, a Federal Reserve-regulated bank that also includes a cryptocurrency exchange, as an attractive investment. Silvergate was also the bank responsible for donation Microstrategy its $205 million Bitcoin secured loan.

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