Investment Seminar
November 9, 2005
Questions and Video Responses

At our seminar on November 9, 2005, Ron Muhlenkamp presented “Where to from Here?” to an audience of clients, shareholders and prospective investors. Afterwards, he entertained questions from the audience. Following is a sampling of the “Q&R” session with streaming video responses. If you are having trouble viewing the video, please click the link to the right to download Windows Media Player.

 

 

 

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About the Economy…

Why should I be happy with 3% inflation, when my dollar in January is worth only ninety-seven cents in December?

 
 
What is deflation and how does it impact what you are talking about?  
 
Are you concerned about the trade deficit?  

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You talked about interest rates. Would you talk a little bit about an inverted yield curve?  

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Talk about how demographics may affect consumer spending in the next several years.  
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About Stock Selection…

You’re still bullish on homebuilders. With everything I read and hear in the media, I’m getting concerned. Please comment.

 

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Are there under-valued or over-valued sectors?

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What about health care and oil services?

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Do you think there is a competitive edge in buying large [capitalization] companies? If so, isn’t this a more efficient market? And, is your investment style value-oriented or growth-oriented?
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What are your basic valuation criteria? Explain a bit about what return on equity is, how you figure it, and why it is important.

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Would you talk about high-yield corporate debt, i.e. high-yield bonds?

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