Last quote by Bill Miller
Bill Miller quotes
They'll be doing disposals. But they'll be cleaning up the business. They'll be putting money in [research and development]. You know, products will get approved. I think it's going to be a completely different business model from what it had before.
Stocks are already discounting probably 3 to 4 percent [on the] 10 year [bond yield]. So you have clear sailing for another 75 basis points easy.
It depends on the growth rate.
I think people have misunderstood Amazon's valuations almost from the beginning.
Facebook and Google, in their core business, are attacking the global ad market. That's where most of their revenues are coming from. That's a $500 billion market.
If a part-time CEO makes sense, then so does a part-time CFO, part-time chief technology officer. That just makes no sense whatsoever.
Bonds are unattractive in my view. I believe we hit a double bottom in bonds in the summertime and we're in a benign bear market in bonds. The 35-year bull market in bonds is over, in my view.
I think the caution, in terms of the real world, is warranted, but it's already expressed in the overall market and again, the stock market is ridiculously cheap compared to bonds.
Broadly speaking, if the yield curve is shifting up, then that's going to be good for banks, good for financials, credit-sensitive names.
Many of the deep value names, as expressed in a low price to tangible book, have already had a big move this year but in a strengthening global economy, even if it's not strengthening very much, those names should continue to do well.
You're talking a 6 percent rate of return on stocks versus 1.5 percent return on the 10-year Treasury. It strikes me that as I think (hedge fund investor) Paul Singer said, Treasuries are hardly a risk-free asset,' and I think the environment right now is the exact opposite of September 1987.
We think with Valeant right now, it's a completely different company. It's just a slow-growth specialty pharma company that will generate a lot of free cash and you should be able to make, I think, 25 to 30 percent on Valeant over the next five years.
Look at what the Fed is doing and global central banks. I think they're beginning to rethink the efficacy of these ultra-low interest rates.
They are an impediment to the system. So I think just the rethinking of that policy is something that's likely to lead the curve to shift up.
I am thankful to Legg Mason for our 35-year relationship and to the many great people I've worked with along the way.