Stansberry Research Discusses Berkshire Hathaway’s Investment Decisions

Privately owned American research company Stansberry research is headquartered in Baltimore Maryland. Stansberry Research is part of the Angora group and was founded in 1999 (En.wikipedia). In addition to the Baltimore Maryland corporate HQ office, Stansberry also has offices in California, Florida and Oregon. Stansberry provides a monthly newsletter that contains detailed investing analysis for their dedicated subscribers and readers. Stansberry is a subscription based investment information newsletter that has subscribers in over 120 countries worldwide. They currently have hundreds of thousands of paid online subscribers.

On March 9, 2018 Stansberry Research published an article about the hidden problems at Berkshire Hathaway. In this article Stansberry goes over topics that have not been publicly spoken about and they admit some of their avid readers may even dismiss that particular article (http://stansberryresearch.com/products/stansberry-alpha/). Stansberry Research suggests that Warren Buffet step down as the acting CEO of Berkshire Hathaway because he is covering up many bad investment decisions. Berkshire Hathaway still has a large amount of strong investment holds and remains an insurance industry leader but this insurance powerhouse is also making less than desirable investments.

Warren Buffet began searching out companies to invest in after he established a large amount of float equity in Berkshire Hathaway. When he began his search he was looking for entire companies that did not require very much capital to grow. These companies did not need to provide large profits right away. He wanted companies that would maintain a steady growth rate and eventually pull in profits. The companies that Buffet sought out were smaller businesses that had a good presence within the United States. By 2013 Warren Buffet completely changed his strategy of acquisition. He began seeking out larger companies that were based outside of the United States and required a large up-front investment. For the first time since Warren Buffets investment career began, a strategy he utilized did not beat the S&P 500. These investments resulted in a compounded decrease in Berkshire Hathaway’s ability to compound wealth.

Stansberry Research goes into detail in each investment newsletter that they publish. These details help dedicated readers to make educated and well informed investing tips.