In this week's Stansberry Investor Hour, Dan welcomes Alex Morris back to the show. Alex is the founder of TSOH (The Science of Hitting) Investment Research and an author. TSOH, which boasts more than 24,000 subscribers, aims to generate attractive long-term returns while providing complete transparency on the research process, portfolio decision-making, and returns.

Alex kicks things off by reflecting on the potential changes in Berkshire Hathaway due to the passing of Charlie Munger and Warren Buffett's retirement. He believes the company is in a good position to continue the momentum that was built up when Buffett was at the helm and acknowledges that the issues the company currently faces were present during Buffett's final days. Alex then begins sharing the names of companies that have fallen but he believes will be able to improve their positions. Though he's wary about picking beaten stocks that might be going nowhere...

I'm really cautious about getting into the "turnaround trap," getting caught there. And when you see this a lot with names where the turn's coming... and then you find yourself three or four or five years down the road and it's like, "OK, we're still trying to fight our way through this turnaround to get to the right place." So you have to be really, really thoughtful about the timing, the upside, if you're actually right. Is it significant enough given [the] risks that you're incurring? And also [see if] the signals and changes... are really showing you that it's changing.

Next, Alex gives his outlook on the next set of stocks he's considering. The first was impacted by the COVID-19 pandemic. But Alex believes that it's taking the right steps to combat inflation without causing its customers to turn away. The second stock is in a niche field. It's currently facing headwinds from a stagnant housing market, but Alex is confident that once conditions improve, the company is set to boom. The third is building up its business by providing higher-quality, premium beverages compared with the competition, which can produce loyal customers who won't want to settle for anything else. And the fourth also provides premium products, only directed at the egg industry...

It's a premium egg brand, basically. And premium at this point means pasture-raised, organic... And I just think you have these interesting companies that have gone after... a place in the grocery store that's really stale, effectively hasn't seen much change. Not for lack of a better word, innovation and then show up and build a brand and compete with the incumbents... And they're just doing their own thing... to the extent that they stay really focused on what they're doing and really intelligently think about where [they] can land and expand elsewhere.

Finally, Alex discusses his final stock pick. This is a company that has faced controversy surrounding user safety, but Alex says the company has improved and continues to improve its safety protocols and is righting the ship. In the long run, he sees the company being comparable with YouTube due to the way its creators make experiences that can't be rivaled by any similar platform. And he concludes by stressing the importance of creating goals in your life...

As a business owner or someone who has control of their calendar, [there's the] importance of optionality and flexibility and really pursuing the things that you love and then balancing that with financial goals and really being really thoughtful about your goals as time goes on, too. I got married a handful of years ago and now have two young kids, and it's really changed how I think about [investing]. I love it, I want to be really successful at this... [But] it's worthwhile to take time to actually sit and think about these things periodically. So you're ensuring that you... make the decisions that make the most sense to you as opposed to anybody else.

Click on the image below to watch the video interview with Alex right now. For the audio version, click "Listen" above.

(Additional past episodes are located here.)

The transcript is coming soon.

This Week's Guest

Alex Morris is the founder of TSOH Investment Research and author of Buffett and Munger Unscripted. He launched TSOH in early 2021 after a decade in the finance industry as a buy-side equities analyst. The objective of TSOH – which now boasts more than 24,000 subscribers – is to generate attractive long-term returns while providing complete transparency on the research process, portfolio decision-making, and returns.

Alex is a CFA charterholder and holds a Master of Business Administration and a finance degree from the University of Florida.