Legendary value investor Bill Miller joined CNBC for an in-depth conversation on his favorite investment ideas, the best sectors to invest in, those to avoid and his long-term views of the stock market.
"We tend to go where the absolute valuations look attractive to us. Things like airlines, for example. Or where there's controversy. So things like specialty pharma. Those are areas attractive in the overall market," Miller said.
On the contrary, Miller thinks investors should stay away from energy companies due to extended valuations in the group.
"I think almost all the oil stocks out there are way overpriced," he said, pointing to the strong rally in the sector over the past 12 months.
In this exclusive conversation, Miller, who's the founder, chairman and CIO of Baltimore-based LMM where he oversees $2 billion in investments, also discusses:
- His views on Apple, Amazon and Valeant.
- Why shares of Fiat Chrysler could be undervalued.
- The "perfect Trump stock."
- Market valuations and where stocks might be headed next.
- His approach to investing.