Bill Miller: Next Time There’s A Huge Crisis, Here’s How You’ll Know When To Buy

Bill Miller

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Legg Mason’s Bill Miller got famously crushed during the 08/09 crisis, wiping out years of outperformance.On CNBC this morning, he was asked how his investment strategy has changed since then, so as to avoid a similar fate. He explained that his mistake was assuming we couldn’t have another deflationary Great Depression scenario again, having only taken into account post-WWII risks.

As for when to buy during a crisis?

What we’ve learned is that you have to buy when governments are stabilizing asset prices (TARP), not destroying them (letting Lehman file for bankruptcy, etc.).

So next time there’s a gigantic balance sheet recession. Just stand on the sidelines until the government starts buying.

As for stocks he likes: Big integrated oil, Microsoft (way too cheap to ignore), Pfizer.