Our Approach

Muhlenkamp & Company, Inc. believes that continuous portfolio supervision, based on a thorough knowledge of investment fundamentals, economic value and a sense of timing, is the key to successful investing.

Investments are made principally in securities listed on the major security exchanges. We may also purchase securities of selected companies traded in the over-the-counter markets. We do not participate in private placements. We do not manage commodities, collectibles, or real estate.

We will not buy securities on margin, sell short, or use options unless we have consulted with the client to discuss the risks involved and obtained approval. We do not subscribe to the philosophy that securities can be acquired and held forever. We believe that the securities markets, as well as industries and companies, can be cyclical in nature. These cycles may be inherent in the industry or the company itself, may be national –or even international — in scope. Technological, economic, monetary, social or political forces, alone or in combination with one another, determine cycles. The life span of these cycles will vary, and may be long or short.

For these reasons, we place our emphasis on a business-like evaluation of current conditions. We study market history to get a better understanding of security values under different conditions, but do not try to apply historical evaluation methods directly to today’s markets.

We believe in diversification and recognize that the proportion of classes of securities to be held at any given time may vary, depending upon economic and market conditions. The relationship of money instruments, bonds, and stocks in portfolios will change as we perceive these conditions.

We believe:

    1. There are 4 Keys to financial freedom:
      1. It’s not what you make, it’s what you spend.
      2. Start early, compounding takes time to work.
      3. Owning is better than lending.
      4. Price always matters.
    1. 90% of everything is mental.
    1. You must know what you are trying to accomplish to succeed.
    2. Prosperity has to be produced before it can be consumed.
    3. Financial well-being will depend, largely, on what percentage of income people are able to save.
    4. A free-market economy combined with a constitutional republic provides the most benefits to the most people.
    5. Stocks make more money than bonds, NORMALLY, because management of the company works for the owners and AGAINST the lenders.
    6. Purchasing-power risk is best defined as the loss of purchasing power due to inflation, taxes, and spending.
    7. Economics is all about incentives, particularly when the necessities are taken for granted.
    8. You can turn a good company into a bad investment if you pay too much for it.