1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Stocks should be like tractors: sturdy and reliable

April 07, 2006

To Muhlenkamp, stocks should be like tractors: sturdy and reliable. So he wants companies with a retirn on equity above 14%, revenue growth of at least 10% a year. He'll have no truck with exotic asset allocation theories, saying, "Academic theories are good as academic theories, but my job is to make money."

The maverick Muhlenkamp is guided by a peculiar mix of bottom-up stock picking and macroeconomic forecasts. He foresees a fairly steady economy in 2006, with 2% inflation and 4.5% short-term interest rates. Thus he concludes that the bottom won't fall our on his eclectic collection of holdings.

Read the complete article

Rating: 2.4/5 (9 votes)


Please leave your comment:

More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners

kalletalPeter Lynch
kalletalJoel Greenblatt
kalletalKen Fisher
pbarker46Hist. Low PB
DBrizanUSA gordon 27Mar2017
hcgaron2nd F-Screen
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)