Monday, January 25, 2010

Bill Miller Likes Big Stocks

After spending 10 years in the wilderness, high-quality U.S. large capitalization stocks are cheap compared to bonds," Legg's chairman, chief investment officer and portfolio manager wrote in his monthly commentary. "Names such asMerck ( MRK - news - people ) trade at 12 times this year's earnings and yield more than 10-year Treasuries. IBM ( IBM -news - people ) has record earnings, trades at 12 times this year's expected results, buys back shares every year, and has grown its dividend 25% per year the past five years."

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