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What Bill Miller is buying in market selloff

The market selloff has "definitely" provided a buying opportunity, legendary investor Bill Miller said Monday.

"What happened Friday and at the open today was that the froth was blown off the beer. It's better without the froth," the chairman of LMM told CNBC's "Closing Bell" on Monday.

Whipsaw action in the stock market saw the Dow Jones industrial average plunge more than 1,000 points at the open Monday and then climb back up and drop again. The index closed down nearly 600 points.

Miller is specifically buying the homebuilders, and airlines, as he thinks that sector could "easily" be up 25 percent in the next 12 months. He is also buying the big banks, some tech, like Apple, and biotech names such as Intrexon and Ziopharm.

In addition, Miller likes "busted one-offs" like Groupon, Endurance and Platform Specialty.

"Really almost anything will be higher in 12 months," he said.

—Reporting by CNBC's Kelly Evans.