Letter to My Daughters: On What Grandpa Taught me
Girls, you know how I can get sentimental about family sometimes. This is one of those times. As you continue to make your way in the world, I think about how much Grandpa has tried to teach me over the years, and how important it is to me to pass those ideas along to you. Here are my “Top 10”: 90% of life is mental. This includes work, school, sports, happiness, everything. Your body, heart and soul will follow your mind. Decide you are a hard worker, decide you are happy, and you will find that you are IN FACT those [...]
Memorandum #150
In their Quarterly Letter, Jeff and Ron Muhlenkamp explain why they are still watching for signs of a recession due to the inverted yield curve but also think that there is a possibility of an inflationary boom. Tony Muhlenkamp shares two articles with us this quarter: “View from the Front Office: Maxims” and “Letter to My Daughters: What Grandpa Taught Me.” Link to full PDF: Memorandum #150, April 2024
Our Investment Process
Owning Good Companies We are only interested in owning good companies, but we can turn a good company into a bad investment if we pay too much for it. We use a business-like evaluation of each company designed to identify what a company is worth as a business. Return on Equity and Price per Earnings Since World War II the average return on corporate shareholder equity has been about 14%. We like better than average companies, so we look for companies with ROE over 14%. In a climate of 2 1/2% inflation and 4-5% interest rates we need to see [...]
Thoughts On: How to Structure a Trust
I have conversations with clients about estate planning, and the topic of Trusts invariably comes up. Trusts can be good solutions to specific problems, but they can be expensive and complicated solutions to problems that have easy, inexpensive solutions. Trusts are used to leave money to people you do not trust—right now—to take care of your hard-earned assets. To know whether a Trust is the solution to your problem, we start by defining the problem (or problems) the Trust is intended to solve through a series of questions. Are you worried about what the heirs will do with an inheritance? [...]
Letter to My Daughters: On How to Get Started
Tony Muhlenkamp provides advice regarding careers and investing. He writes these letters to his three daughters to share wisdom he’s learned over his many years in the industry as well as knowledge acquired from authors mentioned in his letter. Link to the full PDF: Letter to My Daughters on How to Get Started The opinions expressed are those of Muhlenkamp and Company and are not intended to forecast future events, guarantee future results, or offer investment advice.
Memorandum #149
In their January 2024 Quarterly Letter, Jeff and Ron Muhlenkamp recap 2023 and look at the state of the economy at the start of 2024. They also explain their reason behind why they have significant portfolio holdings in certain industries. Tony Muhlenkamp provides advice regarding careers and investing in his article, “Letter to My Daughters: On How to Get Started.” Link to full PDF: Memorandum #149, January 2024