A Blog about  Corporate Governance issues in Malaysia and  Global Investment Ideas
Sunday, 14 August 2011
Bill Miller's Inglorious Demise
"Gone are the days when Legg Mason Value Trust's Bill Miller was a sage stock-picker. Under Miller's management, the fund beat the S&P 500 for 15 years -- until 2005. Since then, Value Trust's assets have dwindled from $20.8 billion at its peak in 2006 to $3.4 billion."
Bill Miller outperformed the S&P 500 in the US for 15 years but has since then failed quite badly. Was he lucky before (there are so many fund managers in the US that some are bound to have had good results just because of randomness), or was he really good and did he lose his touch due to complacency (a very human characteristic)?
We can and should learn from success stories, but also from failure, here is a slide show of Miller's worst stock picks: