CNBC Stock Blog

Why Bill Miller loves Apple and Microsoft ...

Bill Miller's case for Apple stock

Value investor pioneer Bill Miller—with a hot hand after buying Netflix and Best Buy last year—is now talking up Apple and Microsoft.

In an interview Tuesday on CNBC's "Squawk Box," Miller made a case for why he thinks Apple shares are trading at ridiculously low levels of about $476 each as of Monday's closing price. "It just makes no sense for Apple to trade where it is: Seven times enterprise value to free cash flow."

He also said, "Microsoft has been a terrible stock for a decade. It started out stupidly overpriced and now it's stupidly underpriced." In the past 10 years, Microsoft stock has gained 18 percent. But year-to-date, it's up 25 percent.