Value Investor Bill Miller’s Top 5 Stock Picks

1. Uber Technologies (NYSE: UBER)

Bill Miller’s hedge fund initiated a huge call option position in Uber Technologies (NYSE: UBER) during the third quarter and reduced that position by 3% during the fourth quarter. It is the largest stock investment of Miller Value Partners valued at $266 million, according to the fourth quarter filings.

In its Q4 investor letter, Miller Value Partners stated reasons for their big investment in Uber Technologies. Here’s what the firm said:

“It was a busy quarter for Uber Technologies (UBER) who took off in the quarter following the passing of Proposition 22, their ballot initiative that allows them to classify their drivers as independent contractors and not employees. The company also reported 3Q results that was largely in-line with expectations. Adjusted net revenues of $2.81B was slightly below expectations of $2.82B with EBITDA of -$625M coming in slightly worse than expectations for -$623M. The company reiterated their expectation that they will reach EBITDA profitability at some point in 2021, as their Eats business continues to see strong growth as the pandemic continues. The company announced the sale of ATG, their self-driving car unit, to Aurora for $4B, while investing $400M in the business and holding a 26% share of the combined entity. This was followed by the announcement of the company selling Uber Elevate, their air taxi business, to Joby Aviation with Uber investing an additional $75M in Joby. The company’s acquisition of Postmates closed in the quarter and Mexico’s antitrust regulators approved Uber’s acquisition of Cornershop, the Latin American grocery delivery company. The company also announced a joint venture with SK Telecom, to create a South Korean taxi-share company investing $150M in the start-up.”

You can also take a peek at Billionaire Julian Robertson’s Top 10 Stocks and Billionaire Stan Druckenmiller’s Top 10 Stock Picks.

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