Legendary investor Bill Miller recently revealed that half of his personal net worth is invested in bitcoin and other cryptocurrencies, breaking his widely known advice that investors should allocate only 1%-2% of their portfolios to digital assets.
In an almost hour-long interview with WealthTrack on Friday, he said he first bought bitcoin in 2014 when it was trading around $200. He kept buying more and stopped when it rose to nearly $500.
Then he started buying bitcoin again in the spring of 2021 when the coin was hovering around the $30,000 level, having crashed from an all-time high of $66K.
Miller, who now calls himself a bitcoin bull instead of a bitcoin watcher, told WealthTrack that he’s been adding to several bitcoin-related investments since then, citing MicroStrategy as one of them.
“My thinking was that there are a lot of people who are using it now. There is a lot of money being invested in the world of venture capital. There are a lot of skeptical people, who are now, at least, trying to give it a try,” he added.
As for the rest of his portfolio, Miller said he invested the rest in Amazon. In April 2021, Miller said in an interview that he was probably the largest individual shareholder in Amazon “and his last name is not Bezos.”
Miller is a former chairman of the Legg Mason Capital Management Value Trust, best known for outperforming the S&P 500 for 15 straight years when he was with the investment giant. He is now Chief Investment Officer at Miller Value Partners, a company he founded in 1999.
In an interview with WealthTrack, Miller also likened bitcoin to digital gold in terms of an inflation hedge, adding that it is also a “financial catastrophe insurance policy that no one else can afford” given the supply limit of 21 million coins.
Miller then put forward a common argument against the world’s largest digital asset, proposing that bitcoin has no intrinsic value.
For example, the 72-year-old investor put up a Mickey Mantle baseball card that sold for $5 million in January 2021 or Pablo Picasso paintings that sold for hundreds of millions.
“It’s at the very basic level of supply and demand,” he told WealthTrack. “Bitcoin is the only economic entity where supply is not affected by demand.”
However, he cautioned about bitcoin’s volatility, which he described as “very dangerous” for short-term investors.