Stansberry Research analysts question future of Berkshire Hathaway under Warren Buffett

Stansberry Research analysts have come to a startling conclusion about the future of super conglomerate holding company Berkshire Hathaway and its chairman and CEO, Warren Buffett.

Buffett has made a series of questionable investments since 2003 Stansberry Research analysts have found, turning away from the tried and true business model that brought Berkshire Hathaway a multi-billion dollar conglomerate. Rather than placing the billions of investment capital generated through insurance subsidies in shares of high-quality, publicly-traded companies — and purchasing whole companies — that hold up well over time, Buffett began acquiring highly-regulated public utilities. Those utilities — particularly MidAmerican Energy and Burlington Northern Santa Fe Railroad — take an enormous amount of capital with little to no return to justify that investment.

As such, Berkshire Hathaway has drastically reduced its ability to compound wealth and has gone from routinely beating the S&P 500 to doing so only half the time. Stansberry Research analysts believe in another five years it will be nearly impossible for the company to do at all.

Stansberry Research, founded in 1999 by Porter Stansberry and based in Baltimore, Maryland, is an independent investment research firm and publishing company specializing in financial information and software for independent investors. Experienced analysts provide opinions, recommendations, strategies, daily and weekly publications, and commentary on economic news. The firm offers subscription services for newsletters, edited by expert analysts covering topics such as health care, biotechnology, oil, natural resource and mining company investments.

Stansberry Research employs experienced financial analysts with a variety of investment strategies and opinions to offer subscribers and clients a broad range of perspectives on market trends. Analysts operate on two simple principles: giving customers the information they would want and only publishing advice they would want their families to follow.

Stansberry Research boasts subscribers in more than 100 countries across the globe (Gazetteday).

 

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