Legendary Value Investor Calls Bitcoin an 'Insurance Policy' Against Inflation

Thursday 09 July 2020, 6:37 PM AEST - 9 months ago

In a recent episode of the FutureProof podcast, legendary American value investor William H. Miller III—who is the Founder, Chairman, and Chief Investment Officer of investment firm Miller Value Partners, as well as the portfolio manager of mutual funds "Opportunity Equity" and "Income Strategy"—talked about Bitcoin.

Before starting Miller Value Partners, Bill Miller and Ernie Kiehne founded Legg Mason Capital Management, and they worked as portfolio managers of the Legg Mason Capital Management Value Trust from its inception in 1982.

It is important to point out that Miller is not your average fund manager.

As CNBC noted back in June 2018, Miller's 15-year streak (through 2005) of beating the is S&P 500 is still a benchmark no active manager can touch."

With that introduction out of the way, let's take a closer look at what Miller said about Bitcoin in this episode of the FutureProof podcast, where Miller had a discussion—moderated by Jonathan Braunstein—with Mike Novogratz, Founder and CEO of crypto-focused merchant bank Galaxy Digital, that aimed to answer the question "When is the Right Time to Buy Into Bitcoin?".

Braunstein started the conversation by asking Miller when he first got into Bitcoin.

Miller replied:

"I got involved in Bitcoin... around 2013. I think it was trading at around 200 bucks or so, which is where I started buying it, and then it ran up—and going on memory here—to around $1100 or $1200 and then... it collapsed all the way back down to $200 again in 2014

"And I began to buy it again, and so I bought it up to probably around 500 bucks... my average cost is I think around $300."

The moderator then wanted to know why Miller felt those were the right times to buy Bitcoin.

Miller answered:

"Well, Bitcoin has been, as you may know, an extraordinary performer. We call it "digital gold". We're on cryptocurrencies basically ever since it came out ...

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