During our webcast, Jeff Muhlenkamp discussed the state of the economy and the threats he perceived to it and the markets. Since then the rapid spread of the Coronavirus (COVID-19) and unprecedented measures by governments at all levels have rendered much of what he discussed irrelevant. We don’t know any more about the health risks posed by the COVID-19 than you do. Nor do we, or anyone else, know the secondary and tertiary political and economic consequences of the virus spreading.
We do know financial markets and we know our portfolio. We know the financial markets have been fully to overpriced and were past due for prices to drop. We know the companies we own have solid business and financial foundations and that while the stock prices of our companies are falling with the rest of the market the companies themselves are likely to survive and thrive. Nobody likes falling markets, including us. But low prices are the only way to get good companies cheap. We continue to implement our process of bottom-up, fundamental, value-seeking stock picking. In other words, we continue to try to buy low in expectation of being able to sell high. We are sitting tight through the current markets looking for that opportunity.
If you have questions or comments about the content of the webcast, don’t hesitate to send us a message or call us at (877)935-5520.
For the Top 20 Holdings and performance data as of the most recent quarter-end, refer to the SMA All-Cap Value Fact Sheet.
The opinions expressed are those of Muhlenkamp and Company and are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.