Value Investor Bill Miller’s Top 5 Stock Picks

4. Amazon.com, Inc. (NASDAQ: AMZN)

Bill Miller’s hedge fund has capitalized on the stunning Amazon (NASDAQ: AMZN) share price rally by selling 19% of its stake in the fourth quarter. Despite that, Amazon is the fourth largest stock holding of Miller Value Partners at the end of the fourth quarter.

L1 Capital International Fund, which returned 5.1% for the quarter, stated that Amazon is likely to perform well ahead amid its strong business model. Here’s what L1 Capital International Fund stated:

“Several investments in the technology sector were trimmed on valuation grounds with the proceeds used to increase our investment in Amazon. Amazon’s successful flywheel business model and Amazon Web Services are well known. However, we believe the current share price under‑appreciates:

– The consistency and longevity of Amazon’s growth potential in its key businesses;

– The importance of additional revenue streams such as advertising which are high margin and growing rapidly; and

– The strengthening barriers to competition and competitive advantages arising from Amazon’s stepped‑up investment in logistics and other infrastructure.”