Bill Miller admits buying homebuilders too early, and his value fund was down over 5% last quarter. It sounds like he still thinks they are a good buy, but he was early. Although Miller has a good track record he does make mistakes too. Another mistake is his 8% holding of Kodak, which just lost 30%.
I know several forum members are following the homebuilder stocks. At what point would you go long on these stocks? When they are trading at 2% of book value? (hahahah) Eventually, they will be good buys, but isn’t that at least 5 years off?
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