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Forbes Briefing Book: Ron Muhlenkamp
Submitted on 12/08/2008
The veteran go-anywhere mutual fund manager talks about finding value in the bear market and the real financial weapon of mass destruction: mark-to-market accounting.
Ron Muhlenkamp says "We like to invest in good companies when the price is right. We prefer stocks to bonds because we want management working for us as opposed to against us. There's two ways you can put money into a company. You can loan them money, in which case the management's job is to minimize your return. Or you can actually be an owner of the business, in which case their job is to maximize return. We like management working for us. This happens to be a time when the Cadillacs are on sale, not just the Pontiacs and the Buicks but the Cadillacs are on sale, to the extent that, in fact, what we own today, our average return on equal is 18%. "
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