Porter Stansberry’s personally written article for his namesake, Stansberry Research, touts the benefits of investing in insurance companies who are financially responsible and profitable in the long term. He discusses the upside to some of these insurance companies and points out where some of the companies go wrong and become bad investments. According to Stansberry, the companies that make the best investments are holding onto some of the premiums that they are bringing in and investing those funds in the long term. A major red flag to look for when investing in insurance companies is a company who takes their profits from premiums and use them for short term investments before paying out the majority of that money to claims. Which companies are functioning with a long term surplus instead of short term requires in depth research into the business model of each individual company. The problem with this type of investing is that it requires a considerable amount of research to be done in order to know which companies are functioning with long term capital available to invest. Stansberry Research has already done this for a multitude of insurance companies over many years allowing them to make reliable recommendations to their clients.
Stansberry Research has been providing investing insights on insurance companies in addition to other industries for over 20 years. Over the previous six years, the insurance stocks that Stansberry has recommended have outperformed the market by 20%. The advice that they provide to their subscribers is advice that their contributors would like to be given if they were in the same position. The value of their advice has been shown by the consistent growth of the number of subscriptions as well as the success of the many contributors that write for the Stansberry Research newsletter. As the years pass Stansberry is gaining more insight into these insurance companies through personal research and contributions from other investing experts, leading to better recommendations every year.