When it comes to investments, the old adage “knowledge is power” definitely rings true. One of the cardinal rules for Stansberry Research would be education. They realize by promoting education, they can help investors everywhere get higher performing stocks. Keeping them aware of current trends is a crucial part of this education, and one of the most pressing current trends would be the status of Berkshire Hathaway.
As everyone knows, Berkshire Hathaway is managed by Warren Buffett, who has been called The Oracle of Omaha. Buffett and Berkshire Hathaway followed a predictable pattern prior to 2003 based on Stansberry Research. They placed their investments in companies that had a number of important characteristics. These included companies that required very little extra capital to grow, had effective management in place, and we’re highly unlikely to fail. These included smaller companies such as See’s Candies, Kirby vacuum cleaners, and other well-known smaller American companies. There is no question this formula worked extremely well for Berkshire Hathaway. Warren Buffett is it for literally one of the richest man in the world.
However, after 2003, some chinks in the armor begin to form. This is because instead of investing in reliable companies with a solid future, Berkshire Hathaway changed their focus to much riskier ventures and companies. For example, Berkshire Hathaway began to invest in highly-regulated public utility companies such as Burlington Northern Santa Fe Railroad and Berkshire Energy. If this investment had been an anomaly, it wouldn’t have been so bad. However, there continues to be just one small problem with this new investment style.
In a nutshell, Berkshire Hathaway appears to be putting all of their eggs in one basket. 44% of their profits are all coming from highly regulated companies such as these, and that is not a good thing.
Granted, this was a highly controversial article to write the first Stansberry Research. However, they are dedicated to providing the latest trends for all investors to consider. With 500,000 subscribers worldwide, and 70,000 lifetime subscribers, Stansberry Research has developed a reputation for well-thought-out advice (https://gazetteday.com/2018/03/stansberry-research-insurance-investments/). The best way to sum it up is that they have grown in popularity because investors are getting better returns. They are not afraid to publish controversial stuff!