Stansberry Research Review
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Stock newsletter, Stansberry Research Investment Advisory, has peaked the interests of many investors. Stansberry’s newsletters come with a wealth of information and stock picks, but do they really have what you need? Before you buy, read our complete review of Stansberry Research Investment Advisory.
About Stansberry’s Investment Advisory Program
Stansberry’s Investment Advisory is a monthly stock newsletter from Stansberry Research that offers stock picks hand-selected by analysts. The newsletters are lengthy, mixing storytelling with building a case for why a specific industry, and ultimately a particular company are worth investing in. While it’s challenging to get a sense of the Investment Advisory’s historical performance, the service emphasizes long-term trades and allows investors to build a diversified portfolio over time. Our Stansberry Research review will take a closer look at one of the company’s most popular investing programs.
About Stansberry Research
Stansberry Research is a publishing company and investment advice service that was founded in 1999 by Frank Porter Stansberry. The publication initially served as an outlet for its founder to share his own research and write opinion pieces on a variety of financial topics.
Since then, Stansberry Research has expanded and now offers a range of services. Stansberry Research’s model feels like a blend between Motley Fool’s research and Agora Financial’s prolific publications. The company regularly releases unique investment ideas and highly specialized market reports.
The Investment Advisory newsletter service, which covers the stock market and focuses on emerging trends, is the most popular of these research offerings. It’s still run by Frank Porter Stansberry, the company’s founder.
|📈 Features||Stock Picks, Research Reports|
|⭐ Offers||Trial Subscription (30-Day Refund)|
|✅ Best For||Long-Term Investors|
|🙍♂ Key People||Alan Gula|
|🔁 Alternative To||Motley Fool, Zacks|
Stansberry Research Subscription Costs
Stansberry’s Investment Advisory costs $199 per year and starts with a 30-day free trial. This is pretty much in line with the other Stansberry Research newsletters, as well as stock picking newsletters from competitors like Motley Fool and Zacks.
The Investment Advisory is a relatively conservative stock recommendation platform that focuses on deep dives into a single stock each month. That means that only one new position is opened per month. Most stock purchases that the Stansberry’s Investment Advisory recommends are intended to be multi-year positions. As of 2019, 5 out of 24 open positions date to 2012, and one dates to 2007.
Historical performance is difficult to gauge for the newsletter since it is not possible to find a record of closed positions without going back to every past newsletter. Recent positions vary in whether they are outperforming the S&P 500, although the long-term positions that remain open typically have gains two to three times that of the broader market. All positions that the Investment Advisory recommends come with standing 25% stop-loss orders as well as target prices for entry.
The portfolio that the Investment Advisory develops over time aims to contain around 20 positions. Most of these are long-term positions and focus on brand name, Fortune 500 stocks, although the Investment Advisory will occasionally recommend short positions or highlight lesser-known companies. The stock pick recommendations span a range of sectors, and the picks are separated by themes, such as:
- Future of Medicine
- Next Boom and Speculations
- World’s Most Capital-Efficient
In this sense, subscribers get access to a range of different investment strategies. The Investment Advisory looks at growth stocks, value stocks, dividend stocks, emerging markets, and more. Compared to other services, the picks are relatively diverse.
Each stock in the portfolio is given an updated buy/sell/hold rating each month and assigned a risk rating on a 1-5 scale.
Stansberry Research Newsletter
The monthly newsletter is sent to subscribers on the first Friday of each month, and it’s typically a 20-30 minute read. The newsletter starts with a lengthy story that may or may not be related to the stock market, but which ultimately leads to a deep dive into a specific industry. From there, Stansberry’s lead analyst on the newsletter will make a case for why this industry is set up for success (or failure) and hone in on the financials and recent performance of several of the major companies in the industry. Finally, the newsletter will start to focus on a single stock pick and highlight a few long-term technical analyses to identify an entry point.
For impatient readers, the Investment Advisory’s recommendation is succinctly summarized in a blue box at the bottom of the newsletter.
After the new position is discussed, the newsletter includes a paragraph about each stock currently in the portfolio. It is here that each stock will receive an updated buy/sell/hold rating. All of this information is summarized in a table at the bottom of the newsletter.
Occasionally, Stansberry Research will issue special reports that are available to newsletter subscribers. These read much like the newsletter issues, but focus on broad market trends or emerging issues rather than offering specific investment recommendations.
Stansberry Research Track Record
Stansberry’s Investment Advisory is one of many stock recommendation newsletters. Still, it sets itself apart by having a solid track record of long-term investments that develop into a diversified portfolio. The newsletter doesn’t spam your inbox as some other online stock recommendation platforms do, and the fact that the newsletter is only once per month means you don’t have to devote your life to it. That said, this platform is definitively focused on positions that will be held for a least one year, so it is best for long-term investors and people saving for retirement or other significant financial goals.
Who is Stansberry’s Investment Advisory Best For?
Stansberry’s Investment Advisory is crafted with long-term, mostly passive investors in mind. Investors rarely need to act in the month between newsletters except for updating stop losses, and instructions for how positions should be changed are clearly communicated with each new issue. While the Investment Advisory’s performance appears to be strong compared to the broader market, investors need to be comfortable with trusting the newsletter’s rationale for why a company will succeed. There is little true fundamental or technical analysis that goes into the recommended investments – instead, they are primarily based on market trends.
Stansberry Research recommends that all members have at least $1,000 in their portfolios, and we agree with this sentiment. We may even push the recommendation up to $5,000. Since Stansberry Research’s stock picks cost $199/year, you need to be able to generate at least that much more in returns (when compared to the broad market). This is doable, but it will be much easier for investors with larger accounts who can double down on the most successful stocks in the portfolio.
How Does the Investment Advisory Program Compare to Other Stansberry Research Subscriptions?
Stansberry’s Investment Advisory is the flagship newsletter offered by Stansberry Research. But it’s just one of many investment advisory newsletters available from the company. In all, Stansberry Research has 27 different investment research services. These include:
- True Wealth (alternative investments)
- Extreme Value (value stocks)
- Commodity Supercycles (commodities)
- Retirement Millionaire (retirement investing)
- Crypto Capital (cryptocurrency)
- Stansberry Gold and Silver Investor (gold stocks)
You’ll also find three complete portfolio solutions that you can invest in right away. The Total Portfolio has 40 positions including growth stocks, emerging markets, and small cap stocks. The Income Portfolio has 20-30 positions including income-generating stocks, fixed-income bonds, and bonds funds. And the Capital Portfolio has 20 positions including large-cap US stocks and exchange-traded funds. All three portfolios include lifetime access to a selection of investment advisory newsletters.
While these unique niche services may be ideal for some investors, we prefer to stick with the flagship Stansberry’s Investment Advisory classics. It has the attention of the founder, has offers a broad range of picks, and can help generate investment ideas for a wide range of financial goals. At the end of the day, all of Stanberry Research’s investment services share the same goal – make more money!
Is Stansberry Research Legit?
Stansberry Research runs a range of different investment advice newsletters. While we cannot speak to the validity of every newsletter, the Investment Advisory is legit. Remember, increasing your wealth takes time and you shouldn’t expect a single newsletter to help you become a millionaire overnight.
It’s worth noting that Stansberry Research ran afoul of the Securities and Exchange Commission (SEC) in 2007 for promising investors they could “double their money” if they purchased a special report. The company was fined $1.5 million and had a permanent injunction against it from 2007 until 2020, when it was lifted without any objection from the SEC.
- Relatively conservative investment style
- Develops a long-term diversified portfolio
- Inexpensive compared to potential returns
- Positions are updated monthly
- Not spammy like many other newsletters
- Newsletters are long and take a while to get to the point
- Very little apparent technical analysis around entry and exit points
- Difficult to gauge real historical performance