Save This Issue: Our Most Important One Yet We Explore a Dangerous New Currency... Unveil the Perfect Recession-Proof Stock... and Reveal a Little-Understood Way to Build Immense Wealth

Dear Reader,

Few folks are lucky enough to have had a moment in their life that served as a clear turning point.

Oh sure, we’ve all had experiences that shaped who we became and what we accomplished. But the gift of being able to vividly recall a single moment that changed it all is quite a thing... especially if you can remember it with a smile.

I can tell you exactly where I was when it happened to me. I can even remember the words that were said.

“Is this man-made?” asked the young, 20-something man sitting next to me.

I figured I had two choices that afternoon. I could slap the bugger right across the face... or pull up my britches and spend the rest of my days aiming to fix what ailed him.

I chose the latter.

You see, that young man had flown up from California to join me for a few days in Alaska’s remote wilderness. We were in a boat, slowly meandering along a fjord beneath a towering 1,000-foot-tall cliff.

The water was flat as glass. The clouds appeared to grow out of the trees. And salmon seemed to leap with joy as they returned to the waters where they were born and grew up.

It was a thing of beauty – nature at its finest.

And this dolt thought some design team in Los Angeles dreamed up the whole thing.

At the threat of paying royalties to John Mellencamp... Ain’t that America?

That’ll Fix ’EmBut this is where the story gets good.

I spent the next hour or so getting quite serious with the young, confused man. Because it was clear that he never bothered to ponder the things around him unless they scrolled across a screen, I went to the most basic levels.

I explained why we saw just a single whale in one bay but six in another.

M A N W A R D letter

LIBERTY KNOW-HOW CONNECTIONS

Volume 3, November 2019

Get ready... we have something big in store for you. We’re fulfilling our mission to bring you more from our expert doctors, and it simply can’t fit in these pages. Look for a very special edition of Manward Letter to hit your inbox in just two weeks.

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I told him why the effects of spawning salmon could be witnessed and examined several miles away from the nearest river or stream... and why that was so important.

I even explained to him why we have two sets of tides each day... and cleaned up his puzzled look by telling him where all that water goes.

Without a shadow of a doubt in my mind – that odd youngster is a better person because he asked that oh-so-ignorant question. His transformation was obvious and immediate.

Suddenly he went from being somebody who thought only of himself and how he could get some quick gratification and a hit of dopamine (through the internet, booze, porn... name the vice) to somebody who thought of himself as part of something greater.

That’s huge.

Something BigThat question is the spark that ultimately led to our beloved Triad. It’s what led me to the clear understanding that it’s our Liberty, Know-How and Connections that make us who we are.

In other words, if that wayward young man hadn’t asked that silly question... you wouldn’t be reading this right now. It’s the question that launched Manward and the lofty mission behind it.

I’m thinking of it these days because I’m a bit sentimental. I feel like a proud papa who’s watching his offspring go off and do good things of their own – just like the old man taught ’em to do.

In early October, you see, Mrs. Manward and I flew up to Portland, Maine. It was a gorgeous fall day. The leaves were bright and created great contrast to the clear blue sky.

The drive south could have taken all day and we would not have cared. But in just a tad more than 30 minutes, we turned onto a road that seemed like it was meant to be kept a secret. It was narrow and winding... as if what lay behind wasn’t for the rest of the world to know about.

Then we saw a man in a bow tie... then another in a freshly pressed suit... then a couple who wore smiles that would match any outfit. We stepped toward them, and they greeted us by name.

They were your fellow readers. Twenty-five or so of them. All there to hear our thoughts and share some of their own.

Some flew from California to meet with us. Others came from Oregon. And some, their words gave them away, clearly came from the Deep South. What a greeting it was. But really, it was a dream come true.

Sitting in that boat in Alaska on that crisp August morning, I knew I needed to do something. I knew more folks needed to hear what that man from California heard. I dreamed a big dream. And it has come true.

Now... It’s Your MomentThe inaugural Manward Founder’s Retreat was a roaring success. We will undoubtedly do it again. A couple of folks, in fact, made me swear to it.

I used the event to tap some of my greatest Connections. We heard from world-class doctors... a Secret Service agent... and a private equity guru... and I even showed the room how good Know-How feels by teaching them one of my favorite skills (how to pick a lock).

But my intent here isn’t to convince you to attend our next event. I have no doubt it will fill up entirely on its own. No, my intent is to make you think. What’s your moment?

What’s that singular second in your life that pushed you toward something bigger... to new hopes and dreams... toward a new mission?

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Science has long taught us that the key to doing great things is to have a mission. It’s what gets us out of bed in the morning, puts us back on our feet when the mule knocks us on our butts and, this is key, puts smiles on our faces when things come together just right.

Perhaps you’ve never thought of things this way. Perhaps you aren’t lucky enough to be able to recall a single moment in time that shaped your decisions and ideas.

That’s okay. Most folks don’t. If that’s you, let the words in this issue serve as that turning point.

I think you’ll really enjoy them. I cover some little-known facts about data privacy and a hot, recession-proof stock... and our friend Joseph McBrennan introduces us to an important yet little-known income-producing asset.

It’s all important Know-How.

But just a few fresh pieces of knowledge won’t change your life. Devoting yourself to understanding all that you can, though, absolutely will.

I’ve got the proof.

So read the issue. Enjoy it. And take action.

But when you’re done... hang on to this one. Put it somewhere special. Because I’m convinced that one day you’ll look back on it with great fondness.

A single idea has the power to change your life.

Be well,

Andy

Privacy AlertTips From a Secret Service Agent

I caught a guy looking in my windows the other night.

It was scary.

He could see my wife working on the computer... what sites she was on, who she was emailing... and he even took note of the texts on her phone.

Then he peeked in the kitchen window... where he could see what groceries I was putting away, read the mail on the counter and even see where I kept my car keys at night.

That creep looked in our bedroom window. He looked in our bathroom and saw what pills were on our counter. The potential burglar even went in the garage to see how many miles were on our cars.

That’s when I’d had enough.

I flicked on the lights and confronted him. We stood eye to eye. It was a man in his late 20s – a well-dressed millennial with a baseball hat on.

Once I saw the logo on the hat, I knew what he was up to. He was sent by Google.

As soon as I recognized it, I apologized for my anger, turned out the lights and went back inside. He snooped around for another 20 minutes or so and then walked down the road to the neighbor’s house.

I doubt they even knew he was there.

Snoops Are EverywhereClearly there are some fallacies in this story. In a literal sense it didn’t happen... at least the part about the kid looking in the windows and our tense confrontation.

In a figurative sense, though, the story is much worse.

With a few clicks of her mouse, my wife actually invited the snitch into our house. But I’m just as guilty. He just as easily could have come in through my phone.

This sneaky millennial, of course, isn’t real. But the company on his hat surely is. And, thanks to its army of “sneaks” all over the web, our privacy is at risk.

But it’s not just Google... or Facebook... or Amazon spying on us.

No. If you allow me to go back to my story for a minute, you’ll see that right behind the Google sneak is a man from the bank. Behind him is a man from the news site I visited last week. And behind him is a digital Peeping Tom from the app I downloaded at the airport.

The line of folks waiting for a turn to peep into our windows stretches well past the horizon.

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But I’m guessing none of this is news to you. The dangers of online data collection have been well reported. And yet most folks don’t care.

That’s okay. I was one of those folks... until I started to think differently. Until I started to think about data the way I’ll outline in this piece, I didn’t realize just how dangerous – and underreported – this situation has become.

Why It MattersMost folks think they have nothing to hide. They don’t mind if some anonymous web geek tracks their activities, writing down everything they do and everywhere they go.

But they’d certainly care if that same person was looking in their windows, right?

The story online is no different. If anything, it’s worse.

To understand why, we need to look at data differently. I beg you not to think of it just as a conglomeration of anonymous chunks of knowledge... but as currency as well. And as in any system, the person with the most currency wins.

It’s the man with the most who gets the advantage when he shops... who runs the most successful business... who gets the political power... and, ultimately, who gets to control the folks around him.

It’s no different with your data. And personal data is big business these days. But there’s one kind of data that matters the most.

Did you know that a person’s Social Security number sells on the black market for about $15? But a thief who grabs your health record can get $60 or more?

It’s because our health data is much more complex, much more personalized and far harder to take back once it’s stolen.

It can be used to illegally get prescription medicine... make false insurance claims... or steal somebody’s identity and open all sorts of fraudulent accounts.

But according to source after source, medical records are virtually open for the taking.

In fact, a recent study by the Ponemon Institute (a leading research center for all things related to security and trust) found that 89% of healthcare providers it surveyed admitted at least one security breach in the previous 24 months.

That’s nuts.

Right now, according to some scathing research by ProPublica, the records of some 5 million Americans are sitting on the web unprotected.

That means it doesn’t take a hack to find the data... it merely takes somebody with basic computer skills to suddenly know what medicines you’re on, your latest test results, your cholesterol levels and, if your doctor follows the latest protocols, even how many guns are in your house. (My doc asked me at my last visit. I lied.)

That’s the thing. We really have no idea how our data – which never disappears once it hits the web – can be used against us today... or tomorrow.

But we do know, as I mentioned, data is the currency of the 21st century. Just ask Facebook or Google. Both make billions each year selling your personal history to anybody with a checking account.

That information can be used to steal our identities or put something in the hands of bad guys.

Everything they need is quietly sitting online. Again, data is a grand and powerful currency.

And let’s not forget the government can use it to keep us under its thumb.

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This is probably the most important part.

“We’re Watching You”Privacy is a great check on government power.

After all, none of us would want a man from the government snooping in our kitchen windows or taking a peek in our garage.

And we certainly wouldn’t want him watching us as we read our bank statements each month... but with so much data leaking out of our lives these days, that’s exactly the potential.

For proof of how governments yearn to use data as a source of power over their citizens, we merely need to look at China.

Its citizens are wearing masks, facial jewelry and decoy T-shirts these days... all to keep cameras from automatically identifying them and reporting their actions to a vast government database.

Don’t forget, China’s infamous social credit system, which is undoubtedly gaining cultural acceptance in America, already tracks citizens and rewards what the government dubs good behavior while punishing bad behavior.

It uses some 200 million surveillance and facial recognition cameras to get the job done.

Here’s the thing with all of this. That data sticks around forever. What happens in 10 years, when today’s data is mined in new and previously unthinkable ways?

I pity the fool who wants to earn a second chance. His boss... a savvy divorce lawyer... a scorned lover... or even a lazy extortionist... could have a hell of a time.

Private EyesSo here’s the tough part in all of this. What to do about it?

What’s important to understand is we’re not just talking about protecting your credit card.

Most folks are no longer concerned about a hacker getting into their bank accounts. That can easily be fixed.

No, what we’re talking about is much deeper. It’s your entire personal history... from what you say online and the things you buy to the folks you know and the places you go.

It involves your health... your wealth... and even what measures you go to in order to protect yourself and your family.

It involves power, the government and even private companies gaining the ability to control and dominate our society and our economy via data.

After all, data is currency. That means we absolutely must treat it as such.

Tips From the InsideI recently had the chance to sit down with a Secret Service field agent (my Connections pay off once again). When he’s not protecting presidents and their families, he serves the country by protecting our money.

And these days... a lot of money changes hands online.

He showed me multiple examples of how bad guys were able to use data they stole to rake in hundreds of thousands of illicit dollars.

The agent even showed me the sites where crooks go online to sell personal data. They’re quite sophisticated. Many of these organizations even have customer service operations... that offer refunds if buyers aren’t pleased with the effectiveness of the stolen data.

But it’s what the agent told us to do to prevent our data from being stolen that matters most.

First of all, he said, don’t put it out there.

Do whatever you can to keep your data offline.

That means, of course, refraining from putting your details on popular sites like Facebook and Instagram. The agent gave us one example where the bad guy was able to use publicly available data to convince a bank to wire him nearly a hundred thousand dollars’ worth of somebody else’s money.

But it’s not just social media sites that are at risk. Far from it.

I’m guilty.

Out of convenience, I stored a lot of data on a cloud server. That way, I could access it from wherever in the world I was and from any computer I was using.

6liberty – stock recommendation

There was some pretty sensitive stuff in that folder... even my old tax filings and business records.

A crook would have had a grand time exploiting it all.

After talking with the Secret Service agent, I removed it all. It’s now on a portable hard drive that’s stored in a fireproof and waterproof safe.

But it’s not just documents and old files that we store on the cloud.

Let’s Get Physical Many folks now use cloud-based software to run their businesses or manage their books. Don’t do it, no matter how convenient it is. It’s much more secure to download a physical copy of the program and to keep your data offline.

It’s also important to store your sensitive material – like passwords – on separate devices. Lots of folks (even the agent) use software that can store and manage all of their various passwords.

It’s nearly impossible to remember them all... and it’s dumb to use just one password for everything.

That’s why password managers are so popular. But don’t run this simple software on the same device you use to access your critical accounts. If you do, a crook needs to break into just one account.

Instead, store it on a separate device that’s not connected to any others. It makes the bad guy’s job much harder.

But it’s not just your web connection that’s dangerous. Lots of folks are unaware that their Bluetooth connections are just as vulnerable.

Be sure to turn off your phone’s or computer’s Bluetooth connection any time you’re not using it. Some devices will let you make them “invisible” or “undetectable,” but that’s false security. Bad guys can override those features and get right in.

And here’s a tip most folks don’t know... use Apple products. They’re much more secure. The company’s phones, in fact, automatically encrypt any messages sent from one iPhone to another.

Even if the bad guys – or the police – could get their hands on the messages, they couldn’t read them.

The same goes for the company’s Apple Pay product. Of course, cash is always the most secure and private transaction. But in an increasingly cashless world, sometimes cash isn’t an option. Apple Pay never submits your card information. It uses a one-time code, which makes it much more secure if a bad guy intercepts that transaction.

Finally, delete old stuff.

We all know that once something is on the web, it never goes away. But that doesn’t have to be the case for your data. If you’re storing something on your computer and don’t need it... delete it.

Remember this above all else... today’s data is tomorrow’s problem.

Andy Snyder has made his followers rich. After leaving one of the nation’s leading brokerages, Andy decided to take his wealth-exploding advice to the masses. Using his nearly two decades in the investing business, he provides clear and easy-to-follow guidance on the best stocks to invest in each month in Manward Letter.

Better Than BerkshireThe Recession-Proof Stock You Need for the End of 2019

Jimmy is my old neighbor.

He’s a heck of a guy. He is a millionaire... has lots of toys in his five-car garage... and has a beautiful gate at the end of his long, winding driveway.

Jimmy made his money like most rich folks do... the old-fashioned way.

He didn’t gamble on a high-risk venture, and he didn’t create a here-today-gone-tomorrow web business.

Nope... he made his money in glass. Look around. It’s everywhere. It’s in our cars (Jimmy owns a business that puts it there). It’s in our homes (Jimmy’s got folks for that too). And it’s in our hospitals, offices and shopping malls (that’s where our pal makes most of his money).

THIS MONTH’S STOCK PICK

7liberty – stock recommendation

Jimmy isn’t alone, of course. Lots of folks have fast cars, slick boats and beautiful beach homes all paid for by boring businesses.

The famous Koch brothers are ideal examples. Charles and his late brother, David, built their father’s business into quite an empire. But they never made headlines putting on black turtlenecks and debuting a sexy new product. Nope, they boosted their net worth to more than $45 billion apiece by putting stain-resistant carpet on our floors... attaching seat belts to our cars... and installing touchless paper towel dispensers in our bathrooms.

Again, it’s not exciting, but investing in a company that makes what we all need is a whole lot smarter than investing in a company that makes something a few folks want.

Jimmy’s car collection proves it.

These Three ThingsSimply put, the ideal moneymaking “boring” stock would have these three components...

The company would make a product that’s all around us. And I don’t mean a product that’s in our refrigerators, in our pockets or in our cars. I mean it literally needs to be all around us... like you can’t leave your house without seeing what it’s selling.

Jimmy did it, and so did the Koch brothers.

Next, the company would need to make things that are recession-proof. Alcohol manufacturers are quite good at this... so are casinos. But some of the brightest stars on Wall Street today certainly are not. That should scare you. Their shine will fade.

And, finally, the ideal boring stock would sell products that are unaffected by fickle consumer tastes.

Companies like Netflix (NFLX) and Domino’s Pizza (DPZ) are both losers this year because Americans have found a finer taste elsewhere. But, again, Koch Industries has yet to have to worry about folks suddenly not wanting stain-resistant carpet, dry hands or seat belts in their vehicles.

Time and time again, we see that companies with products that surround us... that are recession-proof... and that don’t depend on consumer whims and marketing fads... are the very best and most lucrative investments to make.

It’s what made the Koch brothers billionaires.

It’s what drove shares of Berkshire Hathaway (BRK) from $430 apiece in 1980 to more than $300,000 today... an astronomical gain of 700%.

And it’s what has me so excited to tell you about Graco (GGG). It perfectly fits these three crucial criteria.

Can’t Miss ItGo to its website and you’ll see immediate proof of the first must-have above. Its products surround us.

“We pump peanut butter into your jar, and the oil in your car,” the company’s homepage boasts. “We glue the soles of your shoes, the glass in your windows and pump the ink onto your bills. We spray the finish on your vehicle, coatings on your pills, the paint on your house and texture on your walls. We’ve been a part of your daily life for more than 90 years.”

Given all that Graco does and makes, we don’t have to think too hard about whether its products are recession-proof.

America still eats peanut butter when the economy slows. We still put oil in our cars. We still need soles glued to the bottom of our shoes. And, as my pal Jimmy will attest, we certainly still need glass in our windows.

But it’s that third criteria that trips up so many companies and their investors. So much of what gets attention these days is bright and shiny. Eventually, though, those things lose their luster. That’s not the case with Graco. Its products stand the test of time.

For homeowners, it makes paint sprayers.

For contractors, it makes products for fireproofing, waterproofing, insulation, roof coating and just about anything else that may need sprayed or coated.

On the industrial side, Graco really shines. It designs and builds foam equipment, lubrication systems, concrete mixers and pumps, and it’s even gotten into high-end composite materials like carbon fiber.

And, of course, there’s the division that seems to be perfectly recession resistant... vehicle lubrication. Whether a company is working to maintain a fleet of big rigs, keep its service garage working or keep its heavy equipment

greased and ready to handle a load, Graco high-quality products remain in demand.

Again... when economic woes strike, a company may not purchase new trucks or upgrade to the newest bulldozer, but it will continue to change the oil in its equipment.

That’s the idea that takes us to why I want you to buy shares of this company right away.

The Stock That Could Save Your PortfolioI’m on the record saying I don’t think a recession will strike the American economy anytime soon. Or, if we do get one, it won’t stir the sort of bear market many folks are expecting.

But there’s no doubt things are cooling off and growth is slowing. The highfliers of yesteryear are running into headwinds.

But if you look at a chart (see Appendix) that compares Graco’s share price with Berkshire Hathaway’s over the last five years, you’ll see, well, Warren Buffett would be ashamed.

For every 1% rise in Berkshire’s stock, Graco’s has climbed nearly 2%.

And if a slowdown really is on the way, investors will soon be willing to pay a premium to get their hands on a value stalwart like Graco.

Digging through the company’s financials, we see ample evidence of a company with a solid foundation.

As I write, the company’s second quarter figures are the most recent data available (although third quarter figures are due shortly after we go to print).

The figures paint a clear tale.

Domestically, sales are strong – a 4% growth rate.

The news is even better in Europe, where revenue is up by 10% when we adjust for currency fluctuations. It’s only in Asia that we see a 6% decline, and that, clearly, is due to trade fights with China.

But don’t let the woes in China prevent you from making a move. They’ve long been priced into the stock (I warned of the trouble a year ago) and, besides that, Asia accounts for just 13% of Graco’s annual sales.

The news from where the company gets 87% of its business is quite positive.

All told, the company reports that it expects to see a sales hit of just 1.5% this year due to the trade spat with China. Better yet, though, it tells us that the worst of the headwinds will be gone in the second half of the year.

That’s why it’s time to buy. This stock checks all the boxes. Its products are all around us... literally. We use them no matter what’s happening in the economy.

Sales will continue at their current clip regardless of fickle consumers’ whims. And best of all, it appears perfectly set up to enjoy a very favorable end to 2019. Let’s hurry to add this one to our Own What You Know Portfolio.

Joseph McBrennan is a longtime friend of Manward Press and one of the smartest, most sophisticated and yet down-to-earth financial experts out there. He and his family run one of the best bond businesses in the country. When governments – large and small – need to borrow money, they go to him. So when he talks bonds, we all should listen.

The Secret, High-Yielding Way to Build a $2 Million Portfolio... and Pay $0 in TaxesBy Joseph McBrennan

I have X-ray vision.

No, I can’t see through clothes, no matter how much my adolescent self may have once dreamed.

My special vision lets me see moneymaking opportunities... everywhere. It’s a skill that was taught to me by my father, and he by his father before him.

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Action to Take: Buy shares of Graco Inc. (NYSE: GGG) at the market price. We’ll use our standard 25% trailing stop on the play.

The best part is, it’s easy to learn.

It’s just like how Andy found his latest recommendation for you. All you have to do is walk out your front door and look around.

Moneymakers All AroundWhen I walk outside, all I see are moneymaking opportunities.

I see the streets before me. I hear a firetruck’s siren. Lights from the newly built high school football stadium are shining above the trees a few blocks away. I also spy a fire hydrant down the block.

Each of those sights has put money in my pocket.

You see, I’m an investment banker who specializes in public finance. We’re the people who finance community projects.

The funding for pretty much everything you see – that’s not privately financed – is created by people like me and then sold to investors.

Before you decide to take me off your Christmas card list, let me explain why that’s a good thing... despite what the mainstream press would tell you.

The security purchased is called a municipal (or muni) bond.

And, when done right, it’s a safe way for the average investor to build income while supporting (and profiting from) local community development... and steering well clear of the ticking time bombs that are our federal debt and Treasury market (negative interest rates, anyone?).

Like a Rich UncleMuni bonds are the IOUs sold by local governments when they need to borrow.

There are a lot of them these days.

These bonds provide the funding to build or repair waterworks systems, city halls, schools, sewers, roads and bridges – just about anything needed by local governments.

(Muni bonds are also used to build quite a few things governments shouldn’t be involved with... like professional sports stadiums and performing arts theaters.)

Here’s how they work.

A city needs to borrow. Its officials contact an investment bank. The investment bank creates a repayment structure (with principal and interest) and lends money to the municipality. The banker then sells the individual principal payments (bonds), with the promised interest, to investors.

The investor decides how long he wants to leave his money invested – anywhere from a few years to a few decades. The goal will be to have 100% of his investment paid back at that predetermined date, with interest checks coming every six months.

It’s a bit like having a rich uncle.

Twice a year, say on your birthday and Christmas, he sends you a nice check. Eventually, that uncle “matures” (dies) and leaves you an inheritance (your original investment).

Did You Say Tax-Free? What makes these bonds appealing is that, in most cases, you pay no taxes on those semiannual checks.

In other words, it’s possible to create income that can sustain you, your family or your heirs, completely free of any taxes, ever.

It sounds impossible, but it’s not. I’ve seen it time and again. Here’s a real-life example...

After a lifetime of working, saving and investing, and at a time when most, sadly, can count on only meager Social Security checks, one of my clients had a municipal bond portfolio worth more than a million bucks.

This little old retired lady continued to invest her tax-exempt income back into municipal bonds on a monthly basis, living on only what she needed to survive comfortably.

Imagine the shock of her nieces and nephews when they discovered their aunt left them a tax-exempt portfolio approaching $2 million.

It’s a slow, steady and methodical – and safe – way to build wealth.

No wild swings, no stock market worries. Just a simple plan.

But muni bonds aren’t sexy, so they don’t get much attention from the money press.

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How to Get StartedNo matter where you live in the United States, it’s likely that you could find projects, and bonds, within a few hundred miles of your home.

The Municipal Securities Rulemaking Board (MSRB) has a website called “EMMA” (https://emma.msrb.org/). You can also get to it by googling “MSRB EMMA.”

The homepage displays a map of the United States. Click on your state, and you can start your hunt.

We’ll limit your first search to water revenue bonds because they’re easy to analyze.

A city with a water system has one product: water. It has connections (customers) that provide income (from the monthly water bill), expenses to create its single commodity (again, water), and debt (bonds) used for major repairs and improvements.

That’s about it.

The math is straightforward.

Income - Expenses = Net Revenue

(Net revenue is what’s left for the repayment of any IOU – i.e., your bond.)

A neat shortcut is called “coverage.” This is how much revenue, after expenses, is available for all the city’s water debt. For example, you may see something like “1.25x” or “125%.” Both mean that, after expenses are paid, they have $1.25 for every $1 of water revenue debt.

If a city has 5,000 connections and 1.25x coverage, I’ll seriously consider this bond as an investment. Better coverage, better bond.

Here’s another great reason I prefer these sorts of investments.

They are monopolies.

Most regulations require a resident hook into the water system. No choice. Captured customer.

Exactly what every investor wants in their portfolio... and it’s one of the few ways to legally participate in a monopoly.

As you search for bonds, you also want to look at the debt offering document called the official statement (OS). If a community has issued bonds worth more than $1 million, you’ll likely be able to find an OS.

Plodding through this document will provide a mini-education in municipal debt. Read a couple of them, and you’ll realize they all have similar formats and provide a ton of information... more than you’ll ever need.

[Note: Always read the OS before investing.]

Find Your GuideYou’d think with billions of dollars borrowed by local governments each year, these investments would be easy to come by.

They’re not.

In a falling interest rate market, like the one we’ve seen over the last several months, new muni bonds get snapped up as fast as investors can get their hands on them.

As with so many things in life, it’s a case of who, not what, you know.

Thankfully, finding the right person, or the right type of project, isn’t difficult... if you’re willing to make a few phone calls.

Again, the OS will be your guide here. It’ll list the purchasing investment bank on the front cover.

You’ll want to contact that bank and ask for a bond salesman. Explain that you’d like to buy muni bonds. The next person to pick up the phone will be an eager salesperson.

They’ll be thrilled to find a new customer... until you tell them you’re interested in buying only five bonds. That’s $5,000 worth... my recommendation for getting started and typically the minimum.

So the trick is to not tell them how many you want.

All you really need to say is “I’d like to buy a water revenue bond. What do you have in my state?” It’s their job to educate you and earn your business. Let them.

know-how

1 1know-how

The Own What You Know Portfolio

Company/Symbol Rec. Date Rec. Price Curr. Price Rating Trailing Stop Total Gains

AGCO (NYSE: AGCO) Aug-19 $70.29 $73.55 Buy $57.86 4.87%

Air Products and Chemicals (NYSE: APD) Sep-19 $225.38 $215.22 Buy $169.67 -3.99%

Alamo Group (NYSE: ALG) Oct-18 $90.33 $117.94 Buy $92.21 31.22%

Copart (Nasdaq: CPRT) Nov-18 $50.30 $81.74 Buy $62.58 62.50%

Flagstar Bancorp Inc. (NYSE: FBC) May-19 $35.25 $38.67 Buy $28.80 9.93%

Graco Inc. (NYSE: GGG) Nov-19 New New Buy 25% TS New

Visa (NYSE: V) Sep-18 $147.80 $178.75 Buy $139.31 21.62%

Zoetis Inc. (NYSE: ZTS) Mar-19 $95.72 $128.71 Buy $96.35 34.81%

Last Update: 10/15/19. Gains include dividends.*Official sell price on 10/3/19

The Everyman Portfolio

Company/Symbol Rec. Date Rec. Price Curr. Price Rating Trailing Stop Total Gains

Assurant Inc. (NYSE: AIZ) Apr-17 $95.11 $125.46 Buy $95.63 37.90%

CACI International (NYSE: CACI) Feb-19 $172.51 $229.13 Buy $175.39 32.82%

Canopy Growth Corp. (NYSE: CGC) Oct-19 $21.95 $20.10 Buy $17.54 -8.43%

Constellation Brands (NYSE: STZ) Dec-18 $193.21 $196.76 Buy $158.21 3.00%

Golub Capital BDC (Nasdaq: GBDC) May-18 $17.96 $17.91 Buy $13.05 11.08%

Herc Holdings (NYSE: HRI) Jun-19 $37.91 $43.97 Buy $36.82 15.99%

NovoCure (Nasdaq: NVCR) Jul-19 $63.36 $72.66* Sell Sell 14.68%*

ProShares Short FTSE China 50 ETF (NYSE: YXI)

Jan-19 $21.42 $19.21 Buy $16.09 -9.62%

ResMed Inc. (NYSE: RMD) Oct-17 $76.53 $130.45 Buy $105.25 74.27%

Waste Management Inc. (NYSE: WM) Apr-17 $72.84 $115.65 Buy $102.12 65.19%

In the Appendix is a list of the top firms for underwriting small issues. I chose small issuers because the risk isn’t significantly higher buying small-town USA bonds than bonds for some megacity.

(In fact, when it comes to a city like Chicago, I’d much prefer a town of 5,000 to that trainwreck.)

Contact any of these banks, ask for a salesperson, and then ask for an inventory list and the OS from any “new issues.”

After your phone call, you’ll be on your way to confidently understanding, and investing in, municipal bonds.

If you’re looking for a long-term wealth-building tool, proven incredibly safe for nearly a century, then look no further.

Muni bonds are a surefire way to grow your income tax-free, support local communities and not feed our massive federal debt. n

About the cover image:

Kennebunkport, Maine, is a special corner of the planet that can only be described as “exquisitely Manward.” It’s a place with presidential history and unmatched beauty... and was the perfect place to spend a couple of days with our Manward subscribers.

Graco vs. Berkshire Hathaway Stock Performance (Past 5 Years)

100%

75%

50%

25%

0%

-25%2015 2016 2017 2018 2019

Graco Berkshire Hathaway

Graco 2019 Sales by Currency

Euro

European, non-Euro

Asian

Americas, non-USD

USD

Source: Company reports

17%

13%61%

5%

4%

Top Firms for Underwriting Small Muni Bond Issues

Source: Thomson Reuters

Rank

1

2

3

4

5

6

7

8

9

10

Firm

Robert W. Baird & Co. Inc.

Raymond James

Stifel Nicolaus & Co. Inc.

RBC Capital Markets

Piper Jaffray

Samco Capital Markets

D.A. Davidson & Co.

Roosevelt & Cross Inc.

Janney Montgomery Scott LLC

Baker Group LP

Amount (Millions)

$1,358.9

$734.0

$697.8

$689.7

$580.9

$411.2

$377.1

$334.7

$321.6

$308.5

Issues

297

149

128

118

97

94

105

73

41

95

12

© 2019 Manward Press | All Rights Reserved

Manward Press is a financial and lifestyle publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications prior to following an initial recommendation. Any investments recommended by Manward Press should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties.

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Appendix

Manward Founder’s Retreat PhotosFor more photos, visit bit.ly/mw-retreat.