Stansberry Research Review
Ease of Use
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 in which the analysts at Stansberry Research issue stock picks. The newsletters are lengthy, mixing storytelling with building a case for why a specific industry, and ultimately a specific company, are worth investing in. While it’s difficult to get a sense of the Investment Advisory’s historical performance, the service puts an emphasis on long-term trades and allows investors to build a diversified portfolio over time.
About Stansberry Research
Stansberry Research is a publishing company and investment advisory service that was founded in 1999 by Frank Porter Stansberry. The publication initially served as an outlet for its founder to write opinion pieces on a variety of financial topics. Since then, the company has expanded and now offers a range of investment advisory services related to retirement, commodities, and stocks. Stansberry Research’s model feels like a blend between Motley Fool’s research and Agora Financial’s prolific publications. The company will regularly release unique investment reports and highly specialized services.
The Investment Advisory service is run by Porter Stansberry and remains one of the core offerings.
Stansberry Research Subscription Costs
Stansberry’s Investment Advisory costs $199 per year and starts with a 30-day free trial. This is pretty much inline with the other investment services offered by the company as well as 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 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. 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 released on the first Friday of each month, and it’s typically a 20-30 minute read. The newsletter starts out with a lengthy story, which ultimately leads into a deeper dive into a specific industry. From there, Stansberry’s lead analyst on the newsletter will make the case for why this industry is setup 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 narrow to a single stock 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 stock recommendations.
Stansberry Research Track Record
Stansberry’s Investment Advisory is one of many stock recommendation newsletters, but 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 like 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 large financial goals.
Who is Stansberry’s Investment Advisory Best For?
Stansberry’s Investment Advisory is crafted with long-term, largely 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 issued 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 – rather, they are largely 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 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 definitely doable, but it will be much easier for investors with larger accounts.
- Relatively conservative investment style
- Develops 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 true historical performance