Ask Doc When I recommend a stock in Retirement Millionaire, I focus on income and whether the company has a long history of growing revenues...
Stocks like Berkshire Hathaway (BRK-B), up 192% since we added it to our model portfolio, Johnson & Johnson (JNJ), up 123%, and Microsoft (MSFT), up 165%...
These businesses will help you generate safe and steady income over time. And I believe they should make up what I call the "backbone" of your portfolio.
Of course, these backbone stocks aren't the only way to succeed as an investor...
Finding smaller companies that can grow into big companies also form an important part of a successful investor's portfolio. The key is to achieve those gains without adding unnecessary risk.
As I wrote earlier this week, adding small-cap stocks to your portfolio can boost your gains 10-fold without sacrificing safety... but only if you buy the right stocks.
There are companies that are inexpensive... with excellent management... high margins... and the ability to generate substantial free cash flow. And they can generate big returns.
But they aren't easy to find. There is no shortcut when it comes to doing the work of finding great businesses. That's why Porter and his team have startedStansberry Venture Value.
This research is completely different. Porter will show you stocks with ZERO coverage on Wall Street... with market caps that could be $400 million... $300 million... even as low as $100 million.
Not one in 10,000 investors has any idea about these stocks... and they're blind to the generational wealth they can build.
He's already recommended two such stocks to subscribers. Of course, I can't share any details here, but I can give you an idea of what to expect. As Porter said on our recent webinar:
One of these initial opportunities is the low "D-Factor" version of McDonald's that I mentioned earlier. It's one of the most obvious 10-baggers I've ever come across.
The other is a company that runs a type of online "market" that most folks will never see – at least not directly. It matches buyers and sellers in an absolutely massive industry. And it's grown its revenues nearly 600% over the past five years.
More important... Porter and his team are releasing a third opportunity TODAY, right after the market closes. As far as our analysts can tell – it's the single smallest stock ever recommended in the history of Stansberry Research.
If you'd like to be among the first to read the details of this business, you must be a subscriber to Stansberry Venture Value. It's not cheap... It can't be. I know firsthand that this work is incredibly difficult.
So if you haven't taken the time to learn about Porter's new strategy, do it now.You can click here for a full text transcript of Porter's presentation. (This link does not go to a long video.)
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Q: With the rising interest rates and [being] that bond prices fluctuate opposite of interests rates, how much will this [affect] the municipal bond market. Will it be the same as U.S. Treasury Bonds? – D.B.
A: A lot of factors come into play when figuring out how interest rates will affect your investments.
For one, we think that municipal bonds represent a key asset class for income investors and retirement planners. They have low risk and pay generous yields. And those yields look even better when you consider the tax advantages. (If you're in the 28% tax bracket, a muni bond paying a 5% yield is like the equivalent of a taxable 7% yield!)
In our view, a diversified, conservative investor will always have an allocation that includes municipal bonds.
As for what municipal bond prices will do in the coming months... We don't consider rising interest rates a given. Wall Street predicted rising interest rates for five years before they finally started to budge.
Also, keep in mind the Federal Reserve only officially controls one overnight interest rate. The rates on municipal bonds will be determined by investor demand and the supply available. Municipal bond rates can stay much lower... and for much longer... than you think.
The outlook for capital gains on municipal bonds isn't as exciting as it was a decade ago, but they can continue to deliver steady income to patient investors.
Q: I eat dark chocolate every day. I always have since I was a kid (42 now). You really should recommend what percentage dark chocolate when recommending dark chocolate. They range anywhere from 40% all the way to 100%. The 40% has way too much sugar in it and the 100% is just too bitter for most folks. 60-70% is usually ideal for most people. I prefer the 85% myself. – M.B.
A: You make a good point. If you want the best benefits, stick with darker chocolate. The darker the chocolate, the better the benefits as the higher cocoa content (at least 70%) packs more polyphenols.
The problem is that the lower the cocoa content, the more likely the chocolate is packed with sugar. But as with most things, moderation is important... even when you're eating dark chocolate. Do what I do and eat about one or two small pieces per day.
And make sure you're looking at the package. If it isn't labelled "dark chocolate," it's probably not.
Q: At about 8:00 pm Wed. Feb. 15, I will be a mile high flying to Seattle and of course cannot take part hearing about his "10x performing stock" strategy webinar. Will there be a transcript available? – J.R.
A: I mentioned in yesterday's essay that we were hard at work preparing a replay of Wednesday's webinar for you. It's now available – click right here to view a replay of Wednesday's webinar for Stansberry subscribers only.
Q: Doc... I've been sending select issues to my daughter hoping she'll become a 'customer' and subscriber too. I hope that's OK with you. I admire your delicate 'bedside' manner of clear, simple explanations of complex ideas in the world of investing and wealth management. – J.L.
A: J.L., please feel free to share with your daughter. Longtime readers know I have a habit of sharing information with my friends and family. I regularly gift people books and newsletters. And as my team here could tell you, I often share articles that I find interesting.
I encourage sharing... As I've said before, there's no greater gift than knowledge.
And if she's interested in subscribing (don't forget, it's FREE!), she can sign up right here.
How are you celebrating the holiday weekend? We want to hear your plans at [email protected].
What We're Reading...
- Did you miss it? Why you should just say no at the register.
- Something different: Social Security is increasing the full retirement age. We're following developments here closely.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Retirement Millionaire Daily Research Team
February 17, 2017