There’s a wealth of information available about Warren Buffett and his successful conglomerate company Berkshire Hathaway. Known as the Oracle of Omaha Warren Buffet has been considered to be an absolute legend and astute businessman, consistently predicting opportunities in the market and growing his self-made company into one of the largest publicly traded firms on the planet.
This is why for many it came as a surprise when Stansberry Research did some additional digging and found uncomfortable truths about the company as well as where it might be headed. Porter Stansberry goes into great detail during his free article about the Berkshire Hathaway, but his analysis boils down to two key points.
First of all, Stansberry makes clear differentiation between the early strategies of Warren Buffet compared to the present Strategies employed by Berkshire Hathaway. Most notably, Buffet has consistently invested in only the highest quality publicly traded companies. Because these companies were already great there was little that Warren Buffett or Berkshire Hathaway had to do; so long as they have the capital they can expect to receive games from the company.
Berkshire Hathaway has since deviated from the strategy quite a bit. Rather than purchasing from companies that were considered to be inevitable so just Coca-Cola and Gilette, Berkshire Hathaway has branched out into new ventures. These ventures required large amounts of capital and management. In some cases these ventures were regulated to the point of being much more difficult to profit from.
His second point is just the large nature of the company. Warren Buffett himself admits it is much easier to make large games on a smaller portfolio. There is much less to manage in far fewer mistakes are made. Focusing only on what you’re best at your company and your Investments have the best chance to succeed. As Berkshire Hathaway grows it is forced to disregard this philosophy out of necessity, even though it served the company so well for so long (https://en.wikipedia.org/wiki/Stansberry_Research).
As a whole, it is a breath of fresh air to see an analysis that is critical of Warren Buffett and Berkshire Hathaway. It really goes to show that Stansberry Research is truly dedicated to a diverse set of opinions an open mind regarding investment.