The Man Who Beats the S&P: Investing with Bill Miller [Hardcover]

Janet Lowe (Author)

Book Description

ISBN-10: 0471054909 | ISBN-13: 978-0471054900 | Publication Date: April 1, 2002 | Edition: 1

Learn value investing through the strategies and techniques of the Investment Portfolio Manager of the decade
In the only value investing book focused on value investor Bill Miller, the manager of the $11.6 billion Legg Mason Value Trust, Janet Lowe examines the techniques that have earned Miller celebrity status among investors and his peers. By taking the classic concept of value investing and catapulting it into the twenty-first century, Bill Miller has become a role model for those who wish to learn how to recognize value in today's new and emerging markets. Readers will be introduced to Miller's belief that "the value of any equity depends on the future, not the past." This idea has made him one of the most well regarded value investors in the mutual fund arena and the only manager of a diversified fund to beat the Standard & Poor's 500 for ten years in a row. Through this book, readers will come to understand America's new money master and his investing philosophy of looking beyond the obvious numbers. They will also learn Miller's computerized value matrix and other mathematical tools, while implementing the cutting-edge approach he uses when value investing. Packed with insights and advice, this comprehensive guide to value investing is sure to fill the needs of many investors.

Editorial Reviews

From the Inside Flap

Bill Miller has achieved celebrity status among investors and his peers by applying the classic concepts of value investing to the twenty-first century. Considered the premier mutual fund manager in America, Bill Miller has set one of the highest mutual fund performance records with Legg Mason's Value Trust. He outdistanced the S&P 500 eleven years and running with his innovative value approach to investing.

In The Man Who Beats the S&P: Investing with Bill Miller, business writer Janet Lowe examines the philosophy, analysis, and strategies that have fueled Miller's success through a market that was decidedly hostile to value fund managers. Lowe reveals how Miller keeps his decades-long investment success going.

By following Miller's remarkable track record as a money manager, The Man Who Beats the S&P not only illustrates how Miller picks undervalued stocks, but sets a framework for how you too can use value measures to find undervalued stocks and ride them to profits. This invaluable guide will help you understand Miller's cutting-edge approach to value investing by showing you how to:
* Identify value in the technology sector
* Think like Bill Miller and make successful investment decisions
* Become proficient at the art of new economy and old economy valuation
* Understand real-world stock scenarios
* Manage all aspects of a portfolio

Miller has seen the future, and he understands that value investing and the world of high-technology business have already overlapped and will continue to do so. In a time where there is intense focus on intellectual growth, intellectual accomplishments, and intellectual property, the Miller method is daring and brilliant. Today's investment challenges require a swifter and smarter approach to making investment decisions-that's why Bill Miller's "multi-factor" security analysis has proved so powerful.

Bill Miller's investment approach isn't for the faint of heart. It entails hard work, diligence, patience, and self-confidence. But his methods also have their rewards. If you love research and analysis, and have the desire to find a savvier approach to investing, pick up The Man Who Beats the S&P and watch your commitment pay off in dollars and sense.

From the Back Cover

"Janet Lowe's summary of Bill Miller's incredible investment record and its origins are a must read for all serious investors."
-Mason Hawkins, Chairman and Chief Executive Officer
Southeastern Asset Management, Inc. and the Longleaf Partners Funds

"Bill Miller combines sophisticated analysis with an open mind and a healthy dose of common sense that is enormously refreshing. Anyone who has an interest in investing should find Miller's approach to stock picking a fascinating and valuable study."
-Ken Gregory, President
Litman/Gregory Fund Advisors and Masters' Select Funds

Value Investing for the New Century

Bill Miller has become the role model for those who wish to learn how to recognize value in today's new and emerging markets. He has set one of the best mutual fund performance records with Legg Mason's Value Trust, and continues to beat the S&P 500-eleven years and running-with his proven value investing techniques.

The Man Who Beats the S&P: Investing with Bill Miller reveals the strategies and philosophies that have driven Miller's brilliance as a money manager. With charts that make the Miller method easy to follow, real-world stock scenarios, and proven valuation techniques, business writer Janet Lowe offers a fascinating and comprehensive look at Bill Miller's value investing approach.

You'll learn how to:
* Navigate the high-tech sector
* Think like Bill Miller in making successful investment decisions
* Master the art of new economy and old economy valuation
* Manage the various aspects of a portfolio

If you're looking for an investing philosophy that has proven successful year in and year out, you will be enriched by reading The Man Who Beats the S&P.

See all Editorial Reviews

Product Details

• Hardcover: 262 pages
• Publisher: Wiley; 1 edition (April 1, 2002)
• Language: English
• ISBN-10: 0471054909
• ISBN-13: 978-0471054900
• Product Dimensions: 9.2 x 6.3 x 1 inches
• Shipping Weight: 1.1 pounds (View shipping rates and policies)
• Average Customer Review: 2.6 out of 5 stars  See all reviews (5 customer reviews)
• Amazon Best Sellers Rank: #626,211 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

42 of 42 people found the following review helpful:

2.0 out of 5 stars Disappointing in more ways than one, July 7, 2002

By 

Tony Ursillo (Norwood, MA USA) - See all my reviews

This review is from: The Man Who Beats the S&P: Investing with Bill Miller (Hardcover)

As much as I respect Bill Miller's tremendous record and unconventional approach to value investing, I have to say that this book is a big disappointment. Fortunately, it's not his fault. Because unlike many other books that are co-written by successful investors and their journalistic co-author, Janet Lowe appears to have tackled this project mostly on her own. And it shows. The book reads like one long Fortune magazine article. I was hoping to better understand the intricacies of Miller's thought process and investment approach. Instead, Janet Lowe borrows from practically every other journalist who has interacted with Miller, goes off on confusing tangents covering technological and economic theories, and then feebly attempts to glue all of these quotes and discussions into a coherent portrayal of Miller's philosophy, falling well short of that goal. I've read investment classics by former greats (Peter Lynch, Marty Zweig, Jim Rogers) and I can say with little doubt that this one doesn't cut the mustard.

To give you a flavor before you decide whether to buy the book, consider the following:
- The real text of the book is about 160 pages (not 262). Lowe wastes 50 pages highlighting two dozen stocks with outdated valuation numbers, a bare bones line chart with no volume, color, or an indication of where Miller's transactions took place, and a razor thin assessment from Miller which appears to be borrowed from his previous comments. Useless.
- Miller's approach to portfolio management isn't seriously discussed until p.79 (halfway into the book) and you don't get any serious stock analysis until p.112
- Lowe makes several erroneous statements, such as claiming that Microsoft Word is packaged free with most computers (news to me - and probably to Microsoft) and that AOL beat Prodigy by giving away its browser for free (uh, wasn't that Microsoft killing Netscape?). She also butchers the concept of "pro forma" earnings, even suggesting with one statement that fraudulently booking sales is simply dressing up the numbers.

Why give it two stars instead of one? Simply because I believe that any text you can get on Bill Miller is worth something. I had already read a lot about Miller and I understand new economy principles like "network effects" and "winner take most" markets. So, I found the book repetitive and would not have bought it knowing what I know now. If you've had less exposure to Bill Miller, then the book may still be worth reading. But keep your expectations low.

16 of 16 people found the following review helpful:

1.0 out of 5 stars Very disappointing, May 24, 2002

By A Customer

This review is from: The Man Who Beats the S&P: Investing with Bill Miller (Hardcover)

I was extremely disappointed in this book. It's a very expensive book that's light on content. It only has about 140 pages of actual text. The rest is endnotes and filler of Miller's portfolio holdings over the years. The book is nothing more than quotes from past articles and books containing interviews with Miller. If you've read past articles and books about him, don't waste your money on this weak book. I'm sending mine back for a refund.

5 of 10 people found the following review helpful:

4.0 out of 5 stars Insights into how one very successful fund manager invests, March 31, 2002

By A Customer

This review is from: The Man Who Beats the S&P: Investing with Bill Miller (Hardcover)

Bill Miller has been outperforming the stock market for more than a decade but he isn't as outspoken as other fund managers. Fortunately, Janet Lowe has been able to learn how Miller chooses investments--how he evaluates companies, decides when to buy and sell and more. She has interviewed Miller, his colleagues as well as industry experts to provide an interesting and enlightening portrait of Miller.