Legendary investor Bill Miller likes to buy out-of-favor stocks, and it’s hard to think of any stocks that are outer-of-favor (is that English?) than those of homebuilders.

Only trouble is, Miller, who manages the portfolio of Legg Mason Value Trust, started buying housing stocks in late 2005 and 2006, while they were still skidding downhill. In other words, way too early.

I love this quote from his latest quarterly report to investors.

… if you are early enough, that is indistinguishable from being wrong …

Here’s a link to Seeking Alpha, where I read about this.

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