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Motley Fool Stock Advisor Review, October

Author's Note: This article includes a true story from one of Joy Wallet's Directors about his experiences using Motley Fool's Stock Advisor product from March 2020 through October 2021. I am writing this article on behalf of his personal stock portfolio, experiences and results.


I’ll admit it: Investing in stocks has always overwhelmed me. I knew I wanted to invest. I heard great things from those who did invest. But I was afraid to make a mistake and felt like I didn't understand how to invest in stocks.

Then a couple of friends told me they swore by Motley Fool’s Stock Advisor and life got a whole lot easier — and my net worth increased.

In this Stock Advisor review, you'll find:

If you aren’t yet aware of Motley Fool, it is a private financial and investing advice company. Founded in 1993 by brothers David and Tom Gardner, the duo set out to “make the world smarter, happier, and richer” by providing outstanding business and investing advice.

Just as the Shakespearean court jester could speak the truth to the king and queen (without having his head chopped off), the Gardners wanted to speak the truth and were never afraid to question conventional wisdom.

Launching an online subscription platform with investing recommendations, stock research, and analysis, the Stock Advisor by Motley Fool is perfect for people like me.

What Are Motley Fool's Stock Advisor Picks?

What drew me to Stock Advisor was this: “You don’t need a degree in Finance to grow your wealth.” For just a few minutes a month, the Motley Fool Stock Advisor service was promising to give me and other new investors some stock recommendations I could trust. I wouldn’t have to scour the Wall Street Journal or spend hours online. Stock Advisor was going to do all of that for me.

They also made a pretty bold claim of outperforming the market 3-to-1, with recommendations returning over 561%¹. Is it worth the hype? I was ready to find out.

My Experience Using Stock Advisor Picks

So, I decided to join.

Recommending only companies with at least $400,000 in average daily volume and market caps in excess of $200 million, Stock Advisor picks cost $199 for 1 year, or $39 for 1 month (although they have a generous introductory offer of $99 for the first subscription year for new members). The platform is not a brokerage account and doesn’t give you the ability to buy or trade stocks. Nor does it offer financial advisors or financial services. Instead, the platform features more than 100 stock recommendations with 100% or more returns.

As a member, I am able to access the library of recommendations, plus I get new stock picks sent to me every month, along with investment advice, in-depth analysis, and tips. Here’s an example of Stock Picks’ recent suggestions:

How Profitable Are Stock Advisor Picks?

Of course, every robo advisor vying for your business is going to tell you they outperform the others. Does Motley Fool really outperform others?

Since launching Motley Fool, the Gardner brothers have outperformed even their expectations. Tom's previous picks have a return of +323.4% while the S&P's performance is +118.6%. And David's best stocks and picks? A whopping +888.4% since inception!

David Gardner was an early investor in Amazon (AMZN), which today is valued at $3,221 per share. Imagine getting David's prediction on this stock before others? Heck, at this time in 2016 you could still get Amazon for just over $500 per share.

Motley Fool Stock Advisor outperformed the S&P by four times! Look at this chart:

Graph: Motley Fool Stock Advisor Growth vs S&P 500

Stock Advisor Picks' Features

So, what are you getting for your $99?

  • Stock tips, of course. When enrolled in Stock Advisor, 12 total stock recommendations are given in a Thursday investment newsletter, provided by David and Tom Gardner (both still do all of the picking and their own research even after all of these years). Each stock picked showcases the company’s risk profile, why and what made the brothers pick the stock, and 24/7 monitoring. This means if there is an issue and Motley Fool thinks it’s time to bail, you’ll get an alert.
  • Starter stocks. If you are just starting out and want an easy, go-to set of stocks, the list is curated monthly and includes 10 rock-solid stocks to help you build your portfolio. There is also a special section for newbies to help you start building your portfolio.
  • Instant alerts. Favorite your stocks and watch them, and then you will receive an instant alert when there are big price changes, good buying ops, and when you need to sell.
  • Deals. David and Tom are watching the market and when they notice great prices, they alert their members, just like if you had your own portfolio manager giving you a call with the news.
  • News. Speaking of news, you won’t have to keep watch on the market because Motley Fool is doing that, too, and when there is news that you need to know, it’s getting posted.
  • Full access. A new membership doesn’t mean you start with the current stock tips. Members have access to all the recommendations made since 2016.
  • Videos and podcasts. You'll receive invitations to check out numerous videos with the brothers and guests about investment strategies and discussions on individual stocks, ETFs and other stock market best buys.
  • Live customer service. If you ever have questions, just call the member toll-free customer service line and speak to a real person.
  • Message boards. The Motley Fool is a member-driven community and in its boards, you can talk to other investors, ask questions, and learn valuable tips from people just like you.

The log-in also provides a Motley Fool Stock Screener so you can sort through stocks recommended through a number of filters, as seen here:

2021 Success Stories

Within the last year, Stock Advisor suggested the following stocks to buy (the return is based on January 21, 2021):

Month of RecommendationStockGain %
January 2020Tesla (TSLA)+705.1%
February 2020Invitae (NVTA)+64.2%
March 2020ZOOM (ZM)+191.6%
April 2020Shopify (SHOP)+222.1%
May 2020Software Company+64.9%
June 2020Cybersecurity Company+135.4%
July 2020Chipmaker Company+81.3%
August 2020B2C Online Retailer+21.1%
September 2020Online Marketplace+83.1%
October 2020Image Sharing Service+77.8%
November 2020Enterprise Data Company+70.1%
December 2020American Insurance Company+49.6%

FAQs

When you have such high returns, it looks like the Motley Fool is too good to be true. However, it is a legitimate company with over 700,000 subscribers and 250+ employees.

Am I guaranteed to make money?

Although the Motley Fool Stock Advisor program has had a high rate of historical success, there is still an investment risk and not every pick may pay off. It’s more difficult to find negative reviews, but yes, Stock Advisor has picks during the year that drop by as much as 30%. They may bounce back but some don’t.

Are the recommended stocks cheap?

Many times, the Motley Fool finds stocks right as they're about to take off, whether they are low- or high-priced. They do not recommend penny stocks and focus solely on blue-chip stocks. The duo are about long-term growth stocks and not day trading ops. You do have to move quickly when the recommendations go out on Thursdays, around noon, as the “Fool Effect” often occurs. Within the first couple of hours of the recommendations, the prices go up around $2 to $3 per share.

What if I don’t feel Stock Advisor is helpful?

If you enroll and decide to cancel within the first 30 days, you’ll get your money back. After that, you also have the freedom to cancel at any time, although you won’t be refunded.

Can Stock Advisor serve as my broker?

No; Stock Advisor is exactly as its name implies: an advisor. The service does not include brokerage functions.

How To Enroll

Typically, Stock Advisor pricing runs for $199 annually or $39 per month but Motley Fool is currently offering a $99 introductory offer for Joy Wallet readers who are new members. The first month of enrollment for its premium service includes a full refund if you decide to cancel, which means you can at least take a look for free.

Plus, if you make an investment through a Stock Advisor tip and it performs as well as the average, the annual fee will pay for itself and then some.

Bottom Line

Quite simply, the 700,000-plus members of Motley Fool Stock Advisor are in on the secret: the stock recommendations are not only legitimate but they also out-perform the S&P 500 by triple-digit percentages on average. In the last four years, 83% of the picks have been profitable. Not 100% but what stock is? Stock Advisor’s track record speaks for itself: Over 500% since it launched Stock Advisor in 2002¹.

Is Stock Advisor meant to make you rich? No; but it is meant to provide stable and steady growth to make you wealthier.

For less than $100 for the year and a full refund within 30 days, I definitely recommend you give Motley Fool's Stock Advisor a look. You can follow this link and get started within minutes.

Disclaimer: Joy Wallet is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance. Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. All figures are provided by the cited source or the service provider. Our partners cannot pay us to guarantee favorable reviews of their products or services.


Sours: https://joywallet.com/article/motley-fool-stock-advisor-review-how-i-made-117k/

***Motley Fool Stock Advisor Performance Updated as of August 13, 2021***

Does the Motley Fool’s Stock Advisor newsletter provide good stock recommendations and is it worth the price?

At HowTheMarketWorks, one of the services we provide our users is that we subscribe to dozens of stock advisory services and we buy all of the recommended stocks from each service in a virtual trading account.

This allows us to have objective performance results of each service.

In this article I will review the performance of the Motley Fool Stock Advisor stock picks from years 2016 through 2020, and show you the profitability of all these stock picks.

I will show you some of their stock picks that were excellent stock picks and gave us huge profits. I will also show you how we used stop-loss orders to protect our initial capital.

Here are the 4 main things you get when you buy the Motley Fool Stock Advisor service. This is directly from the Motley Fool’s webpage:

Motley Fool Stock Advisor Details

First of all, note that you get TWO new stock picks each month.  These are the stocks that we are testing.  Their “Best Buys” and “Starter Stocks” are just re-recommendations of stocks that they have previously picked that they still like.

Motley Fool Background

The Motley Fool has been providing stock market commentary and specific stock recommendations to the general public since 1993. They truly exist to help you make money in the stock market. Currently they offer about a dozen stock recommendation newsletters that cover a variety of investment strategies. The price for these stock advisory services ranges from $199 a year to $8,000 a year.

The Motley Fool Stock Advisor is their most popular service and their most affordable.  Their marketing page says it has over 1,000,000 subscribers.  That is up from 600,000 at the beginning of 2020 so they must be doing something right.

Their office is located in Alexandria, Virginia. I have even been to their offices several times over the 30+ years I have been in the stock market education business. Based on the size of their offices, they probably have 300+ employees.

The Motley Fool’s “Stock Advisor” newsletter is their most popular and their most advertised stock picking newsletter. They claim this service has returned 588% versus the SP500’s 139% since the launch of this service in 2002.

August 15 Performance

That claim is enough to get everyone’s attention. In fact this is the first service we bought so we could paper trade their picks to find out if their performance claims were realistic.

My Motley Fool Stock Advisor Performance

With the Stock Advisor newsletter they send you two NEW stock recommendations each month. You will also get updates on previous recommendations, and occasionally a few sell recommendations. The emails are short and concise, and if you want to click to get more information, you can read their full analysis.

This Motley Fool Stock Advisor Performance is based on my own experience as a subscriber since January 2016.  At 2 picks a month for 60 months that is 120 stock recommendations.

Here is a table summarizing the performance of those 120 stock picks:

Motley Fool Stock Advisor Performance as of August 13, 2021

Performance of the Motley Fool Stock Advisor Breakers Stocks from 2016 to 2020 as of Aug 13, 2021

Summary of the Motley Fool Results

As of the date noted above, here are the highlights of the Motley Fool Performance for the last 5 years:

  • 83% of their stock picks were profitable
  • the average return of their 120 stock picks is 215% vs the market’s 80%
  • they achieved that incredible average by picking many stocks that have doubled and tripled:
    • 55 of those 120 stocks at least doubled
    • 37 of those 120 at least tripled
    • 23 of those 120 at least quadrupled
  • one of their 2016 stocks is up 4535% (Shopify)

The Motley Fool really does have a great knack for finding a few stocks each year that have fantastic returns. Think about it. If you buy 24 stocks a year, lose 8% on a 4 stocks, make 10% on 16 of them, have 2 that double and 2 that triple, your portfolio will be up 30% in one year. In 3 years you will double your portfolio. That is essentially what the Motley Fool Stock Advisor Service has done for the last few years.

More About My Experiment

Since I work for HowTheMarketWorks, at first I set up a virtual account with $100,000 and just started buying $5,000 of each of the stocks they recommended. Like most of you, I am a busy person. I can’t always stop what I am doing when I get their emails. Generally I would place my buy orders as a market order within an hour or 2 of after getting their recommendations. I have been burned (ie, lost money) from other stock services. So to be cautious, I placed a stop loss order at 30% below my purchase price.

After seeing the positive returns on 8 of the first 10 buy recommendations that I paper traded in my HowTheMarketWorks account, I decided to start buying their stocks picks with my real brokerage account using my real money. At first I started buying $2,000 of each of their stock recommendations. I have to say that I am very, very pleased with the results. I just wished I had more money to buy more of their picks!

For their 2020 stock picks which on average are up 83%, 17 of those 24 are up as of August 13, 2021. Here are some of their specific recommendations:

  • January 2020 stock pick TSLA is up 733%
  • February 2020 pick DXCM is up 62%
  • March 2020 ZM is up 187%
  • April 20200 pick SHOP is up 332%
  • June 2020 stock pick CRWD is up 154%
  • July 2020 pick ASML is 106%

Obviously these are just some of their recent picks. My point of showing you these is that they really do pick stocks that double and triple each year. And THAT is how they have made the amazing returns they advertise.

In addition to the 2 picks per month, they also send out a few other BUY lists like this one…

Here is a sample email that they sent in May 2018 of their Starter Stocks recommendations. Here are 10 solid stocks.  I am showing you a 2018 email because they recommend you hold their stocks for at least 5 years.

Motley Fool Stock Advisor Sample Email

Motley Fool Stock Advisor Sample Email

Of those 10 stocks (AAPL, AMZN, ANET, FB, HAS ,MA, MAR, MKL, NFLX, PYPL), they have all gone up since I received that email.

The cost of the Motley Fool Stock Advisor service has fluctuated over the years from as low as a few hundred dollars to $995 a year. Right now they show the price at $199 a year, but are currently offering 12 months for only $99 to new subscribers.

August 15 Performance


*** THE BEST STOCK NEWSLETTER OF 2020 -- March 1, 2021 UPDATE --

We are constantly monitoring over a dozen stock recommendation and advisory newsletters. There is one newsletter that is consistently outperforming all of the others and that is The Motley Fool Stock Advisor.

The BEST newsletter of 2020 was the Motley Fool Stock Advisor service who had 22 of 24 profitable stock picks with an average return of 89%, including 7 picks that more than doubled.

Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 201% compared to the the SP500's 53%. That means the Motley Fool is almost 4x better than the market! No other stock newsletter comes close to that. The Fool has done so well because they quickly identify stocks that will perform well BEFORE everyone else does. Now with a new President and a COVID vaccine, make sure you get their next stock pick!

Take a look at these recent picks as of March 1, 2021:

  • Their December 3, 2020 pick is already up 80%
  • Their November 5, 2020 picks is up 56%
  • October 1, 2020 pick is already up 84%
  • Fiverr Intl (FVRR) -- September 2, 2020 pick is already up 135%
  • CrowdStrike (CRWD) -- June 4, 2020 pick is already up 132%
  • ServiceNow (NOW) -- May 7, 2020 pick is already up 54%
  • Shopify (SHOP) – April 2, 2020 pick and it is already up 271%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 239%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 35%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 890%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 170%
  • Netflix (NFLX) picked November 21, 2019 and it is up 76%
  • Trade Desk (TTD) picked November 7, 2019 and up 343%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 244%

Now, no one can guarantee that their next picks will be as strong, but our 5 years of experience tracking the Fool shows that their picks are doing better than ever.

Normally the Fool service is $199 per year but there is a special offer page where NEW SUBSCRIBERS can try it for just $99/year if you click this link. 

Updated as of April 11, 2021 -- The Motley Fool Stock Advisor service has won our award for the Best Stock Newsletter of 2020--that's now four years in a row. The Motley Fool 2020 stock picks have a 78% return and 20 of those 24 stock picks were profitable. FIVE of those 24 stocks have now at least DOUBLED! TSLA was their top pick and is now up 687% since they recommended it in January 2020. Also their 2019 stock picks are now up 115% compared to SP500's 47%; and their 2018 stock picks are up 209% compared to SP 58%. Now with a new President and a COVID vaccine that seems to be working, most analysts expect the market to continue up. But make sure you have the right stocks in your portfolio so you can CRUSH THE MARKET like their last 5 years of stock picks have done!

In fact, over the last 5 years the average Motley Fool stock pick has almost tripled, being up 192%! This time period covers the 2016 election, the Trump administration, the China trade negotiation, COVID, and now the Motley Fool is continuing their excellent stock picks with one of their 2021 stock picks already up 23%. Don't miss out on the Motley Fool's next stock pick.  Here is their schedule for the next few weeks:

  • April 15, 2021 - David's New Stock Recommendation
  • April 22, 2021 - David's List of 5 Best Stocks to Buy Now List
  • May 6, 2021 - Tom's New Stock Recommendation
  • May 13, 2021 - Tom's List of 5 Best Stocks to Buy Now

FYI--Their October and November picks are already up 92%, 18%, 29% and 41%. And remember, if you are not impressed, you can always cancel within 30 days and get a full refund.


CLICK HERE to get the next 24 Motley Fool's Stock Picks for just $99 per Year! 


Other Considerations

If you subscribe to the Motley Fool Stock Advisor service, you might find yourself making more stock trades than you normally do. So be careful of the commissions you pay with each trade. Commissions will eat up your profits if you are only investing a few hundred or thousand dollars.

If you don’t already have a real stock brokerage account, then open a new account and take advantage of the special “Commission Free” offers that a lot of the brokers have right now. To review all of the “Commission Free” stock broker offers for new accounts, CLICK HERE.

If you already have a brokerage account, don’t be shy to switch brokers or open a second or third account. I have 4 brokerage accounts myself. It has literally saved me thousands of dollars! I have 4 brokerage accounts for a reason. I take advantage of special offers to trade commission free, and you should too. A penny save is a penny earned.

Also be warned, the Motley Fool business model is they use this service as their entry level subscription service. Once they have your email address, they try to upsell you to their other services. They don’t call you, they just send you emails. So I don’t find them annoying at all.

Final Thoughts

Some people ask me if the Motley Fool is a legitimate business. Yes, absolutely they are legit and they are there to help you make money. I have visited their offices in Alexandria, VA several times. I have met several of their key personnel and I see them at investor education conferences. They take their job seriously and are truly focused on helping their subscribers make money in the stock market. If you are ever unhappy, you can always cancel. And yes, when you call they will answer their phone! If you want to know how it rates against other stock picking services, then read this best stock newsletter review.

My Conclusion

The Motley Fool Stock Advisor services is the best value for the money. Don’t just take my word for it, feel free to read this other review of the Motley Fool.

If you are just getting started investing in the stock market, or even if you have been managing your stock portfolio for years, the Motley Fool Stock Advisor is a great service for the money. I never would have bought SQ, MAR and NVDA without their recommendations. If you want to try the service, click on the link below…

How to Order the Motley Fool Stock Advisor and Save…

Motley Fool Stock Advisor Coupon

The Stock Advisor newsletter is currently available to new subscribers for $99 for 12 months.  At this price it is a NO-BRAINER to spend $99 and get their next 12 months of stock picks and market commentary. All of their stocks will probably NOT go up. From my experience, however, most will go up over the long term. Most importantly, they seem to have a way of finding stocks that double or triple in a year. Stock like NVDA, MAR, AMZN, and SQ did that for me. It’s always great to have a few stocks that double in a year to offset a few of their losing picks..August 15 Performance


How Do I Open a Robinhood Account and Get up to $1,000 in FREE STOCK?

To open a Robinhood account, all you need is your name, address, and email. If you want to fund your account immediately, you will also need your bank account routing and account number.

As its current promotion, Robinhood is giving away a FREE STOCK (valued at $5 to $500) to anyone that opens a new account this month if you click on the promo image below.  Then, once you open and fund YOUR account with at least $10, you will receive more free stock (again valued at $5 to $500) for referring your friends and family. The more people you refer, the more free stock you get. Click on this promo below to start your Robinhood account application and get your first FREE stock.....

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Bonus Tip:  Use this link to get a free stock (up to $500 value) when you open and fund your account with at least $10:sign up for Robinhood today, you'll get a free stock (up to $500 value!) FURTHERMORE, for each friend that you refer, you will receive ANOTHER free stock valued at up to $500. This is perfectly legit and you WILL get more free stock for every friend or family member you refer.

Why do they give away so much free stock? Because they spend their advertising dollars this way instead of buying TV, radio, print, or online ads! They WANT you to refer friends!

 

As of August 13th, the Fool’s 2020 picks are up 83%, 2019 picks up 116%, 2018 up 230%, 2017 up 227% & 2016 up 419%!
NEW SUBSCRIBERS: CLICK HERE to get the next 12 months of of picks for only $99.

 

Sours: https://education.howthemarketworks.com/motley-fool-stock-advisor-review/
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From Stock Advisor: A Sample Recommendation

Note: The following was written in September 2005 and is offered here as a sample of what you can expect in our stock recommendations. The numbers and advice have not been updated and does not reflect our current position on this company.

September 2005

Whole Foods Market

As you know, my brother, Tom, and I have quite a competition going good-natured as it may be hinged on beating each other's returns to deliver great stock picks to you. Last time I checked (and I tend to check less often when this is the case), Tom was beating me. So I decided for the first time to crib off his picks sheet. If you can't beat 'em, join 'em, right?

My selection this month is a best-in-class retailer. It has achieved stunning success where so many others in its industry have staggered, lagged, and become downright outdated. This is a retailer that values its employees because it believes that happy employees make for happy customers and, presumably, happy shareholders. This company keeps delivering amazing growth, quarter after quarter, year after year.

I'm speaking of Whole Foods Market(Nasdaq: WFMI). Over the years, this company has grown in so many ways. At first, it appeared to be little more than a haven for hippie types. It grew some more. Then some argued that organic food was just a fad. Whole Foods kept growing. Well, then the naysayers said it was just a haven for bohemian suburbanites and downtown hipsters with comfortable paychecks. Oh, yeah? These days, I'm wondering if its next step is to take over the world as it shakes up traditional grocers such as Safeway(NYSE: SWY), Kroger(NYSE: KR), and even Wal-Mart(NYSE: WMT).

And the strangest part of the story, as longtime Stock Advisor members may remember, is that Tom sold this stock for some reason that I really should go back and read some time. But if you've read this month's introduction, you already know all that. I'm recommending this stock now, before he has time to get back in!

Putting the 'Super' in 'Supernatural'

This company satisfies many of my favorite criteria for investment, including having visionary founders with revolutionary concepts at the helm. Whole Foods Market is still run by its founder, John Mackey, who started the business in 1980 with a lone store in Austin, Texas, that was temporarily put out of business for a year in the worst flood to hit the area in a century. That hint from nature was Mackey's first inkling that he should consider expanding his business to other areas preferably those not in a flood plain!

Mackey is a brilliant chief executive. He built his business from the ground up and defied many stale grocery conventions while doing so. Take Whole Foods' "shared fate" initiative. Instead of doling out stock-related incentives only to its executive team, 93% of Whole Foods' stock options are granted to employees ("team members," as Whole Foods calls them) who are not executive officers of the company. Transparency is a big deal at Whole Foods too any team member can see what any other team member makes and company policy limits the CEO's pay to no more than 14 times what the average team member brings home.

Shall we talk about another of my favorite attributes in a brand? Whole Foods and its other brands, Fresh Fields and Bread & Circus, are nationally recognized for their high quality and attractive retail environment. And as evidence of the power of great branding, strong management, and a solid-yet-somewhat-revolutionary plan, Whole Foods has historically beat competition like Wild Oats(Nasdaq: OATS) into, well, oatmeal.

Premium Quality

Whole Foods the stock tends to get people's tongues wagging that it's overvalued. Don't get me wrong, it is a pricey stock, but look at its long-term returns. What separates me from many investors is that I take a very long view of my companies. I don't make "20% guesses" as to whether a stock's next 20% move is up or down. I simply look for the best companies in America and plan to hold them for the long term. I don't mind paying up now for a stock that I believe will continue to deliver big gains over the coming years and analysts are predicting sustained 20% growth.

Whole Foods' latest quarter gave a nice snapshot of a company that is firing on all cylinders. Sales rocketed 24% while net profit increased 31%. Margins all increased, and cash and short-term investments grew a whopping 63% to $361 million. Long-term debt decreased by 92%, virtually wiping it out altogether. And one of my personal favorites, free cash flow, shot up 85% for the first three quarters year over year to $99 million. By 2010, the company expects to have 400 stores and report $10 billion in sales.

Food for Thought

When I interviewed John Mackey for The Motley Fool Radio Show, he shared an anecdote about being turned down for financing by a venture capitalist who said his business was merely a fad, and that the old-school retail giants would simply run Whole Foods out of business when they started offering organic fare. What Mackey believes has happened instead is that the small organic offerings from supermarkets have only fueled greater consumer interest in the holistic experience offered at Whole Foods.

Going forward, I believe Whole Foods operates with the wind at its back as the leader in a growing industry, both domestically and worldwide. Organic, healthy food is a serious macro trend, as is "gourmet" food, and Whole Foods is the perfect climate for customers looking for either. In addition, Tom pointed out back in 2002 that people who shop at Whole Foods tend to be less price-conscious than other customers, and I second that assessment today.

Going Shopping

To close, this is and probably always will be (at least during its growth years) a pricey stock. Oh yes, now I remember that's why Tom sold back in 2003. But I'm willing to pay up for a great company in the golden age of its growth cycle because I know I'm going to hang in there for the long, long term and almost always beat the market.

However, for those Fools who like to take a more cautious approach to expensive-looking stocks of world-class businesses, here's my standard advice: Split your investment amount into three pieces and buy the stock in thirds. By picking a few different entry points, you'll alleviate much of your anxiety. You may even beat the price I get on our scorecard.

Making multiple investments in these shares over time is a good habit to get into. You hear me, bro?

To see all of David and Tom Gardner's current and past stock recommendations -- and to find out which brother has the best returns -- try out Stock Advisor free for 30 days.

Sours: https://www.fool.com/investing/general/sa-sample-rec.aspx
My Experience With Motley Fool Stock Advisor - Some Investments Up 50%! #Shorts

Review: Using Motley Fool Stock Advisor to Beat the Market

Have you heard the story of Grace Groner?

She attended Lake Forest College, in Illinois, and after graduating in 1931 took a job at Abbott Laboratories, where she worked as a secretary for four decades.

In 1935 she bought three shares of Abbott stock for $60 each. Over the years the shares split many times, and she always reinvested any dividends.

Groner lived simply: buying clothes from garage sales, walking rather than owning a car, and living in a one-bedroom house in Lake Forest.

So when she died at 100 it was shocking to everyone that her $180 in Abbott stock was worth $7 million. She left the entire estate to her alma mater.

What can we learn from this?

It’s that investing isn’t about the price of a stock, even though investors are always picking stocks based on price. They forget that stocks are about owning part of a business. That’s what your shares are.

And if you buy and hold good businesses, even one good business like Abbott, for long enough periods of time, you can become wealthy. It’s how getting wealthy works.

Matching the market

Now, the easiest way to buy and hold businesses is to buy a basket of them, and you can buy a basket of them by investing in an index fund.

That’s how I started investing. I bought shares of an S&P 500 index fund, because when you invest in an S&P 500 index fund what you’re investing in are the 500 companies making up that index.

Large and medium ones representing all types of American industries: Amazon, Apple, Coca-Cola, Disney, Facebook, Google, Lego, Netflix, Nike, and yes, even Abbott.

That’s one way to invest, and another way is with a total market index fund. Some investors prefer the total market over the S&P 500 because it includes large and medium companies plus small ones. More diversification.

But if you’re trying to decide between the two don’t sweat it, because if you compare the charts you’ll see little difference.

This is a great place to stop.

Beating the market

But if you have a high level of interest in investing then you might want to pick individual stocks, because when you pick stocks it’s possible to beat any index fund.

And how could you not? When an index is just that: an index of good, mediocre, and poor companies?

Most people shouldn’t be picking stocks, because most people won’t pass the very first test: having an interest. Besides having an interest it helps to have an understanding of behavioral economics, decent math skills, and emotional discipline.

I’d argue you also need community, a place to get advice and information. That’s the reason I’m a Motley Fool Stock Advisor subscriber.

In 2006, when I picked my first stock, it was Stock Advisor that helped me find the best ones to buy. That’s what they do: co-founders David and Tom Gardner pick two new stocks every month.

And after spending a decade building a small stock portfolio I’ve come to believe that picking stocks can be rewarding.

My results

Here, I’ll give you some long-term results: over the last five years the stocks are up 253% while the S&P 500 is up 108%. For the past 10 years they’re up 535% while the S&P 500 is up 126%:

These days my portfolio takes care of itself, so I’m not sticking around Stock Advisor for new picks, I’m sticking around for the community.

It’s where I met my investing mentors, people like Tom Engle and Saul Rosenthal, who have a long, consistent track record of beating the S&P 500, and sharing valuable advice.

I consider the Gardner brothers mentors, too. They’ve been picking two new stocks every month since 2002, handily beating the S&P 500 with their picks.

How I use Stock Advisor

Do the math and you’ll learn the Gardners have picked hundreds of stocks, so you might be wondering how you pick from the picks?

Well, here’s the thing. Their picks aren’t created equal, meaning some will do much better than others. But as time goes on you’ll figure out what characteristics makes a stock a winner or loser for the simple reason you’ll have winners and losers in your portfolio.

You see, investing is one of those things where you need to pick the losers and make the mistakes in order to learn, to gain experience.

I think the people who have a bad time with Stock Advisor expect to beat the S&P 500 by taking lots of saved money and forcing it into a bunch of different stocks all at once.

The reality is the Stock Advisor team finds great businesses, and it’s up to you to carefully choose the ones you really want to own. And doing this, building a portfolio for a lifetime, should be done slowly over time.

Now if you sit there and ask me if I think picking stocks is the only way to go, of course not. It takes commitment to being a lifelong learner. Don’t want that commitment? That’s fine, just index and be done with it.

Because investing might be the best example of people saying true things, but the opposite of what they say is also true. To say that another way, there’s no one-size-fits-all for investing.

That’s why my best investing advice is listen to everything, which is what the Motley Fool means by “motley.” What eventually happens is you find yourself investing the way you like best.

Want to learn more? Try Stock Advisor free for 30 days. You’ll have access to David and Tom Gardner’s top stock picks, as well as a community of fellow investors.

Hey!

If you liked this article why not get a quick email when I post something new. Join my private email list of 20k+ here:

Sours: https://chrisreining.com/motley-fool-stock-advisor-review/

Fool advisor sample stock motley

This Motley Fool Stock Advisor Review is based on my personal experience of being a subscriber to the Motley Fool Stock Advisor service AND buying about $2,000 of EACH of their stock picks for the last 5 years in my ETrade account.

Like you, I saw all the Motley Fool's advertisements about their fantastic returns like the one below and quite frankly I didn't believe them.

So, in order to have my own objective analysis of the performance of their stock picks, I decided to do my own Motley Fool experiment.

Here is a summary of my Motley Fool experiment and my results of buying the Fool's picks.

Below you will find my results and analysis of the last 5 years of Motley Fool stock picks (that's 120 stocks). I will even show you screen shots of my ETrade account. All percentage returns are calculated based on closing prices of Friday, October 15, 2021.

Here is a table of the results of the Motley Fool's picks based on the year of recommendation:

The 120 Motley Fool stocks have had an average return of 219% compared to the SP500 80%.  As they claim, the longer you hold the stocks the better they perform.  Note that the stocks from 2016 are up 428%.

So is the Motley Fool worth it?  It has definitely been worth it over the last five years.

If you are asking ‘How are these results possible when most Wall Street money managers struggle to beat the S&P500 Index?', the answer is now clear to me.  It is because over these last 5 years the Motley Fool has consistently picked many stocks each year that double, triple and even quadruple in price.  Over the last 5 years:

Here is how those 120 Motley Fool stock picks performed by year.

NOTE:  I am ignoring their 2021 stock picks for this analysis as those picks don't yet have 12 months of performance, but they too are beating the SP500 by double digits.  Their August 5, 2021 pick (UPST) is already up 193%, June 3rd pick is up 137%, April 1 pick is up 84%:

The key point I am making is to get these results you need to do exactly what I do:  BUY EQUAL DOLLAR AMOUNTS OF ALL OF THEIR PICKS EACH YEAR.  It doesn't matter if you are buying $500 or $5,000 of each of their picks, you would have the same percentage returns.  But remember, you need to buy each pick because you never know which one will we be the top performer for that year. 

Another key point is you need to plan on investing for the long term.  As you can see, the Motley Fool stock picks for the last 5 years have absolutely crushed the market's return.  Furthermore, the longer you hold them, they better they perform.  That is why they recommend you hold their stocks for at least 5 years, as I have done.

Finally, at $99 a year for new subscribers, it is absolutely the BEST VALUE around for investors of all levels.  It will probably be the best investment you ever make.

So if you have at least a few hundred dollars to invest each month, and you plan to invest for at least 5 years, then subscribing to the Motley Fool at the $99 promo rate is a no-brainer. Remember, they release their picks each Thursday so the next one comes out Thursday October 28.

MOTLEY FOOL STOCK ADVISOR TIP:  As you can see, they have done a fantastic job over the last 5 years and into 2021.  That period covers the 2016 election, the Trump presidency, COVID and the recent election.  Now they are releasing their stocks for 2021, the post-Covid world, the Biden presidency, and the expected post-Covid economic boom.  Their next stock recommendation is scheduled to be released Thursday, October 28, 2021.  But most importantly, as soon as you subscribe you can immediate access to ALL of their most recent picks so you can start adding to your portfolio immediately.

With over 1,000,000 subscribers their stock picks tend to pop 2%-5% within 72 hours of their announcement. So, to maximize you returns, you need to buy the stock as soon as their recommendation comes out.

In this review I’m showing you exactly what you want to know about the Motley Fool Stock Advisor service. Since I have been a subscriber since 2016 I am presenting just the FACTS from my personal experience.

Most importantly, I am going to answer the questions everyone is asking: Is it worth the money? Does it really beat the market? Are the returns that the Motley Fool advertises like the one below really true?

So are these results really true?  The answer is YES, those returns since inception are correct because they picked lots of stocks in the early days that had absolutely phenomenal returns like Amazon (up 21,309% since they first recommended it), Netflix (up 23,756% since they first picked it) , and Disney (up 10,287%).

Those 10,000+% returns on a few stocks picked in the early days naturally help the overall average.

But if you are thinking of subscribing, you should be asking how has the Motley Fool's Stock Advisor performed the last few years?  As a reminder, here is the summary of my ETrade account in which I have only purchased the Motley Fool Stock Advisor picks since January 2016:

Now here is the most important fact I can share with you:  the price of their stock picks usually pops up a few dollars the day their recommendation comes out.  So to get these great returns you need to buy the stock as soon as they recommend it.  That is why being a member is so important!

Here is another FACT that people never think about but yet it is extremely important…

Tom and David Gardner that started the Motley Fool in 1993  and still run the company and make the stock recommendations.  This is extremely important because you might find another newsletter that has also done well, but you never know who really is picking their stocks.  With this service, however, the 2 brothers that started this newsletter have been there since day one and there is no reason to believe they are leaving their own company.

Motley Fool Stock Advisor Summary

Here's What You Get:

  1. Two brand new stock recommendations and analysis per month delivered in real-time to your email.
  2. Access to all of the Motley Fool's Stock Advisor recommendations they made in 2020, 2019, 2018, 2017 and 2016.
  3. The Motley Fool's Top 10 Best Stock to Buy RIGHT Now report that features some of their recent picks that still offer the best potential return.
  4. The Motley Fool's Top 5 Starter Stocks report that features the ideal stocks that should be the foundation of new investor's portfolios.
  5. 24/7 Monitoring:  They will let you know when they believe it's time to sell any of their stocks
  6. Toll-free customer service.  Yes, real people answer the phone.
  7. You also get:
    • A clear explanation of WHY they recommended each stock and the factors considered
    • A Risk Profile that explains the upside and downside of every stock pick
    • Starter Stocks: If you are just starting a portfolio, they will tell you their 10 rock-solid stocks that should be the foundation of your portfolio
    • Fool Knowledge Base:  24/7 access to their full library of reports and research to help you get their opinion on other stocks that you might own or be considering buying

My Motley Fool Experiment with My Real Money

You probably have seen the Motley Fool's ads like the one below showing their average stock pick is up 601% since inception (as of October 8, 2021):

Fool advertisements for 629%

Like you, I was skeptical so I decided to find out the truth about the Motley Fool Stock Advisor service.

To have an objective test of the Motley Fool Stock Advisor, in January 2016 I subscribed and I opened an ETrade brokerage account dedicated just to buying every one of the Motley Fool stock picks.

So for over 5 years now I have bought $1,000-$2,000 of EVERY stock the Motley Fool has recommended.  Scroll up and look at the table of my results.

Now, as promised, I will show you screen shots of my ETrade account.


Their Best Stock Pick of 2020

On January 2, 2020 the Motley Fool issued a BUY recommendation for TESLA when the stock was trading around $425 a share (that's before it split 5:1 a few months ago).  Here is  a picture of the Motley Fool email I got recommending “BUY TESLA”:

stock pick tesla

You can see in the image below of my ETrade portfolio that I bought 20 shares of TESLA on January 2, 2020. I got filled at $85.78 (split adjusted) per share, for a total cost was about $1,715.  And as of  Friday, October 15, 2021 the stock was at $8433 per share for a profit of $15,144 on my $1,715 investment in just 20 months.  That is a 882% gain:

my tesla trade

While I am at it, here's another screen shot from my ETrade account–one of the Motley Fool's December 2019 stock picks that is up 328% in 18 months.  On December 5, 2019 the Motley Fool recommended HUBS and I bought 10 shares at $153.65 a share. And as of October 15, 2021 it was at $790 for a gain of $6,372 or 414%.

my hubs trade

These are just 2 examples of the Motley Fool's 2020 stocks that have done well.  In fact, 6 of the Stock Advisor service stocks for 2020 have already more than doubled.

But the fact is the Motley Fool Stock Advisor really does pick many stocks that double, triple, or quadruple every year, so the AVERAGE is truly that high.  I should know because I have been buying all of them.  Take a look at the MAX RETURN for 2016 which is 4,308%.  That was Shopify that the Fool recommended on July 15, 2016 when SHOP was at $32.32.  (I bought 50 shares that day for $33.10 and now it is at $1,425.  More specifically, as of October 15, 2021…

  • the 24 Motley Fool stock picks from 2016 are up an average of 428%
  • their 24 picks from 2017 are up an average of 237%
  • the 2018 picks are up 233%
  • the 2019 picks are up 110% compared to SP500 61%
  • and quite impressively, their 24 current picks from 2020 are already up an average of 87% and the SP500 is up an average of only 43% over the year.
  • Finally, of the 120 Motley Fool picks from January 2016 to December 2020:
    • 102 or 85% are up
    • 56 have at least doubled
    • 33 have at least tripled
    • and 24 have at least quadrupled in price
  • Yes, you see in the last column that the Motley Fool does pick some losers, but the number of winners they pick far exceeds the losers.

The obvious conclusion here is the longer you hold the Motley Fool's picks, the better they get.

If you came here just to get that Quick Summary of the recent Motley Fool's  performance, there you go.

MY MOTLEY FOOL CONCLUSION —  Given that their last 120 stock picks (that's 24 stock picks a year over the last 5 years) are up an average of 219% , the Motley Fool Stock Advisor Service is absolutely worth it.  If you have at least $200 to invest each month it clearly pays for itself many times over.

The normal price of the service is $199 a year.  But if you are a NEW SUBSCRIBER can claim this $99 a year price by clicking the link below.  They also offer a 30-day full refund guarantee so you can try it and get a full month of all of their picks risk-free.

Introductory Offer:  New members can register for just $99 for a full year.

Remember, they have a 30 day money back guarantee so you have nothing to lose and lots to gain from their stock picking service.


Their Performance for the Last 12 Months

If you had been a subscriber to the Motley Fool for the last 12 months, then you would have these profits as of September 17, 2021:

  • Shopify (SHOP) — picked again at May 6 is up 51%
  • Idexx Labs (IDXX) — Feb 18, 2021 stock pick is up 26%
  • Zebra Tech (ZBRA) — Nov 19, 2020 stock is up 53%
  • Pinterest (PINS) — Oct 1, 2020 pick is up 73%
  • Fiverr Intl (FVRR) — Sept 3, 2020 pick is up 107%
  • Crowdstrike (CRWD) — June 4th pick is already up 180%
  • Shopify (SHOP) – April 2, 2020 pick and it is already up 374%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 190%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 52%
  • Invitae (NVTA) Feb 6, 2020 pick is up 27%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 647%

Here's the most amazing statistic about the Motley Fool stocks.  Regardless of what month you subscribed, as long as you bought all 24 stocks over the next 12 months you would have at least doubled your money.

Now, no one knows for sure what the stock market will do or can guarantee that the Motley Fool next picks will be as strong beating the market, but our 5 years of experience gives us no reason to think otherwise.


How To Become a Subscriber At the Best Price Available

New subscribers can get a full year of the Motley Fool Stock Advisor for just $99.  Normally the Motley Fool service is $199 per year.  I have bookmarked this New Subscriber page that has their lowest price ever for NEW SUBSCRIBERS ONLY so you can try it for just $99 and get the next 12 months of stock picks if you click this link.

Now if they maintain their excellent track record like they have had for the last 5 years, it just might be the best $99 investment you ever make.

The Motley Fool Stock Advisor won our award for the Best Stock Newsletter of 2020, and that's now FOUR years in a row. If you were a Motley Fool subscriber last year you have a 91% return and 20 of those 24 stock picks were profitable. That includes having SEVEN of those stocks that have now at least DOUBLED! Their top performer was TESLA which is now up 681% since they recommended it in January 2020. In addition, their 2019 stock picks were awesome too and they are now up 127%; and their 2018 picks are up 232% (SP's 64%). Now for 2021, with a new President and a COVID vaccine, most analysts expect the market to continue up, but make sure you have the right stocks in your portfolio so you can CRUSH THE MARKET like their last 5 years of stock picks have done!

In fact, over the last 5 years the average Motley Fool stock pick has tripled, being up 216%! This time period covers the 2016 election, the Trump administration, the China trade negotiation, COVID, and the election.  Now with the start of Biden's term, don't miss out on the Motley Fool's picks for the new presidency and the post-COVID economy.  Here is their schedule for the next few weeks:

  • October 7, 2021 – Tom's New Stock Recommendation
  • October 14, 2021 – Tom's 5 Best Stocks to Buy Now
  • October 21, 2021 – David's New Stock Recommendation
  • October 28, 2021 – David's 5 Best Buys

Stock Advisor is Normally $199, but Here is Their Latest Offer for NEW SUBSCRIBERS ONLY:

Get IMMEDIATE access to their latest picks AND receive their next 24 stock picks in real-time for just $99.

(there's no risk, they offer 30-day money back guarantee)


The Details About The Motley Fool Stock Advisor Program

In the rest of this article, I will also show you:

  • Exactly what you get when you subscribe to the Motley Fool
  • When the Motley Fool will release their next new stock picks
  • The percentage of the Motley Fool stock picks that were profitable each year
  • The OVERALL results of their picks year after year,
  • And I will tell you how those picks are still doing today, June 12, 2021 (HINT: their picks from 2016, 2017, 2018, 2019, and 2020 are beating the SP500 by 121%.

I will also tell you 2 important trading tips about the Motley Fool services that I have learned.  Two little facts that you must understand about their services in order to maximize your profits.

Why Did I Write This?

I will try not to bore you, but I think it's important to tell you a bit about myself and why I felt the need to write this Motley Fool Stock Advisor review.

My story is probably not too different from yours. I watched my parents work their a** off (excuse my French).  They each worked 50+ hours a week to give our family the best lifestyle they could.  Unfortunately, my father passed away six years ago just after his 65th birthday. He worked hard his whole life and planned to enjoy his retirement, but he died within months of retiring.  My dad's death taught be a valuable lesson–I need to start building my personal wealth NOW so I can retire early and ENJOY my retirement.

My Mission

To accomplish that, I set out on a mission to find the best and the fastest way to learn about the stock market and build my stock portfolio in a proven and safe way.  I started out talking to people I thought were smart and wealthy, reading countless books and magazines, and subscribing to various stock newsletters.

To save YOU a lot of time here is a summary of what I learned…

  1. The FIRST lesson I learned was definitely NOT to get stock tips from friends or chase rumors.  My friends ended up costing me money and wasting my time.
  2. The SECOND lesson I learned is that you must take action. Reading, thinking, and talking do NOT build wealth; investing builds wealth.  So the sooner you start investing the right way, the faster your account will grow.  It's all about investing a little each month, and the power of compounding.  So stop thinking about investing and start investing NOW!  You will be surprised how quickly your portfolio grows.
  3. The THIRD lesson I learned was that not all stock newsletters are worth the money.  Over the last two decades, I have subscribed to dozens of stock newsletters and the Motley Fool's Stock Advisor has the most consistent returns and is the cheapest.
  4. The FOURTH thing I learned was how easy it is to get started building a profitable portfolio. Opening a brokerage account is easy and takes less than 3 minutes. To find the right stocks, that is now easy too.

Eventually, I did find a stock service that was able to consistently outperform the stock market.

…And that's why I wrote this review of David and Tom Gardner's best stock service.  So I can share my results with the Motley Fool's stocks and encourage you to start building a profitable portfolio like I have.

Is the Motley Fool Worth the Money?

Based on my experience over the last 5 years of buying every one of their two new stock picks each month, my analysis of the Motley Fool Stock Advisor performance concludes absolutely YES!

As I mentioned above, just buying 20 shares of TESLA on January 2, 2020 has given me $15,000 of profits.

Just to be clear.  NOT every one of the Motley Fool stock picks goes up, but they do pick a lot of stocks that DOUBLE or TRIPLE each year.  So, on average, their stocks have beat the market by over 121%.

To properly answer the question ‘is it worth the money' you need to understand how much it costs.  The regular price of the Motley Fool Stock Advisor is $199 a year.  Even at that price it is very inexpensive compared to other services.  But new customers can subscribe now for just $99 a year on this Motley Fool NEW SUBSCRIBER DISCOUNT link.

At $99 a year, with a 30 day money back guarantee, and based on their last 5 years of performance, the Motley Fool Stock Advisor program is absolutely worth it. You should absolutely get the Fool's next 24 stock recommendations, plus access to their all their recent picks, and try it out. Every stock probably won't go up, but 89% of their picks over the last 5 years were profitable and the average has crushed the SP500. You have very little to lose and lots to gain.

So, assuming you have some cash to invest each month, and you can let the money stay invested for a few years, it certainly seems like a very safe bet.

Does Motley Fool Tell You When to Sell?

Yes, the Motley Fool will tell you when to sell a stock.  Over these 5 years they have issued 5 sell recommendations.  Four of these sell orders have been because the stocks were being acquired and they recommended selling to get the cash out.   

How Much Does It Cost?

The normal price is $199 a year.  No commitment.  Cancel any time with a 30 day money back guarantee.  However, the Motley Fool constantly runs pricing promotions for new customers like “TRY IT FOR JUST $19” and “50% OFF for New Subscribers.”

Stock Advisor is Normally $199, but Here is Their Latest Offer:

Get IMMEDIATE access to their latest picks AND receive their next 24 stock picks in real-time for just $99.

(there's no risk, they offer 30-day money back guarantee)


More Details…

You probably already know a little bit about the Motley Fool and their products.

Invest Better

You may have seen some posts on social media where they provide insights on the stock market.  However, here's a brief recap of what they do:

The Motley Fool is a stock picking service whose stated goal is to help you learn how to “invest better.”  And based on my experience that is exactly what they do.  They take the stress out of picking stocks.

About the Motley Fool

The Motley Fool was founded by David Gardner and Tom Gardner in 1993.  Tom and David Gardner's most popular stock recommendation service is called “The Stock Advisor” and was launched in 2002.

The Fool’s Stock Advisor service has only one purpose – to help YOU invest, better.

Every month, the Gardner brothers present 12 US stock recommendations that are sent via e-mail and available on their website.

Here’s What You Get…

For those of your that are just starting out investing in the stock market–the Motley Fool has a special section for you.

starter investors

After you signup, you have immediate access to the entire Motley Fool's Stock Advisor website which includes a list of their picks, their stock screener, their message boards, etc.

Stock Screener

Then you will start getting specific stock recommendations emails as follows:

  • Every first Thursday of the month, Tom Gardner presents one new stock recommendation.
  • On the second Thursday of the month, David Gardner presents one new stock recommendation.
  • On the third Thursday of the month, Tom presents five of his favorite Best Stocks to Buy Now list.
  • And on the fourth Thursday of the month, David presents five of his favorite Best Stocks to Buy Now list.

An Example Recommendation

Here is what one of the recent “Best Buys Now” emails looked like…

Stock Advisor

Here's something else you MUST KNOW–Tom and David Gardner are still running the company and providing these stock recommendations!  If you look at other newsletters, you can't compare one year to the next because they have so much changeover and you never know whose advice you are following.  This is a STRONG POINT for the Motley Fool's service!

If you have doubts about the Motley Fool suggestions you can pull up the coverage page which will display the analysis of the stock.

I love that feature! Here's how it looks:

okta stock buy

Notice the date of this recommendation…April 20, 2018 when the stock was around $42.  I purposely picked this one to show you because it was the Fool's top performing stock pick of 2018.

Also notice the copy above says it was first recommended in January 2018 when it was around $29.18.

As of June 26, 2021 OKTA closed at $246 so that stock alone is up 679%!  This is just one of their stellar stock recommendations that is up 8x in the last 2 years.

So, Why Should You Care About the Motley Fool?

You should care for several reasons.

First, it makes investing in the stock so much easier and less stressful.  Just read their recommendations every Thursday and buy what they recommend.  I just buy the 2 NEW picks each month as the “5 Best Stocks Now” are usually re-recommendations of previous stocks. Any of their stocks that go down 32% I just sell off to cut my losses. This helps to keep some cash in the account.

Second, as you have seen in great detail above, they really do pick a few stocks each year that double or triple each year.

Third, if you are just getting started, its a great place to start and learn about the stock market.  Financial advisers agree on few things, but they ALL AGREE that the sooner you start investing in the stock market they better off you will be in the future.

None of us have the time nor the skills to analyze thousands of stocks and then decide which ones are the best ones.  The Stock Advisor subscription is tailored to the Individual Investor to do exactly that.

What Else Do You Get?

When you order a Stock Advisor subscription, in addition to the two new stock picks every month, you'll have unlimited access to all of their current and historical stock recommendations.

recent stock picks

It also includes “Instant alerts”. They will send you an instant alert as soon as one of these events occurs to a stock in your list:

  • New buy alerts
  • When it is time to sell (this is huge)
  • Large price changes

Additionally, you'll get have access to the Fool’s research page, which presents premium articles and reports that cover the US stock market.  Their reports page is very interesting and presents numerous trending topics in our society such as virtual reality, self-driving cars, lithium batteries, pot stocks, etc.

Is the Motley Fool a Scam or is Motley Fool Legit?

I get this question a lot for some reason…  But it's still an easy answer: The Motley Fool is DEFINITELY NOT a scam.  My results with the Fool picks over the last 5 years have been phenomenal, as you have seen.  Of course it's not perfect and every stock tip is not a winner. But, they definitely are a legit company and for the last 5 years their stocks have crushed the market.

I also think people may get the wrong impression if they stumble upon tweets like these:

Twitter scam

However, you can find those tweets about anything these days!

The fact is, the Motley Fool stocks have beat the market since 2016. My results shown above prove it. That is the most important thing you need to know. Also, the Motley Fool has been in business since 1993 and employ 250+ people. And they currently have 700,000+ subscribers to their Stock Advisor. 1,000,000 people can't be wrong!

But, for the benefit of people reading the Motley Fool review, here are the FACTS:

  1. There's no question, the answer to is the Motley Fool a legitimate company is YES.  It is well known among investors.  In fact, they now say they have over 1,000,000 subscribers.
  2. I subscribed in 2015 and my results are listed above
  3. They even have their own mutual fund, which is the “Motley Fool Global Opportunities Fund Investor Shares (FOOLX)”.
  4. Also, the Fool brothers, Tom and David Gardner, don't hide from their customers.  For example, they often have interesting ideas on their certified Twitter page.

Here is an interesting piece on their ups and downs with Amazon.com (they first purchased it in September 1997!)

Here another testimonial from a customer given on Stackexchange, proving even more how it's not a scam.

“I've had a MF Stock Advisor for 7 or 8 years now, and I've belong to Supernova for a couple of years. I also have money in one of their mutual funds. “The Fool” has a lot of very good educational information available, especially for people who are new to investing. Read full testimonial“

Now that we've beaten that myth to death, let me answer a few other questions…

Will it Help you Make More Money?

The short answer is YES.  That's proven by their past performance. As I mentioned above in this review, since 2016 their stock picks have an average return of 219%.  That means that they more than tripled.

I subscribed in 2016 and my results speak for themselves.

Motley Fool's Stock Advisor- Additional Insights

1- It is true that there are many options to explore, but after testing a bunch of them, the Motley Fool provided the best returns and the best bang for the buck.

2- The Stock Advisor is usually $199 a year, but if you are a new subscriber visit this new subscriber page to see their latest offers like 50% off or try it for just $19 with a 30-day 100% membership refund period.  It is an investment, but you will get a great return on that investment.

3- There is definitely a “Fool Effect.” With 1,000,000 subscribers, you must understand that their stock recommendations go up about $2 – $5 within  hours of the release of their recommendations. So be ready on Thursday to buy as soon as you get the email.

4- Like with any other stock picking service, it's true that their investment strategies are not 100% guaranteed. From what I have experienced in the last 5 years, they do seem to pick one stock a year that goes down 20-30%.  They will, however, let you know when they want you to sell it.  My recommendation would be to place a stop loss order at 32% of your purchase price.

5- After paper trading their stock picks for 6 months, I eventually had the confidence to start buying all of the Motley Fool stocks in my Etrade account.  Here are a few screenshots of my account that show the date I bought them and the returns.  Notice the TWLO was recommended twice so I bought it twice:payc profits
twlo trade

I also feel that the Fool service is very cheap compared to other alternatives that don't perform as consistently. (Zack's Investor service is 3x the price)

How Much Does Stock Advisor Cost?

The Motley Fool's Stock Advisor is now available at its lowest price ever.  Last year I paid $199 and if you go to their website you will see the full retail price is $199.  BUT–They do run pricing promotions of $19 a month or $99 a year for new subscribers.  Either way you can cancel and take advantage of their 30 day money back guarantee and get a full refund.

Is Motley Fool a pump and dump?

Absolutely not.  In fact, they are the opposite.  They recommend you hold their stock picks for at least 5 years.

Does it Cover Penny Stocks?

No, the Motley Fool services focuses on blue chip stocks, which are large & well-established companies in their respective industry.  They do NOT recommend penny stocks.

For penny stocks, I would suggest looking into Timothy Sykes, a penny stock trader who made $1.65 million by day trading as a university student.

He has a couple of teaching segments that you might interest you:

Is the Motley Fool Good for Technical Analysis?

No, definitely not. Technical analysis involves analyzing trade volume and prices and then trying to forecast the direction of stock prices.

The Motley Fool service is based on fundamental analysis and is for longer-term investing.  Hence they focus on the company’s financial statements, their competitors, the overall health of the economy, etc.

Is it Good for Day Traders?

No. Day Trading involves buying and selling stocks on the same day. The Motley Fool recommends stocks they want you to hold stocks for years, not minutes.

It is focused on buy & hold portfolios that seek capital growth. This involves a lot less stress and growth for the long-term.


Motley Fool Stock Advisor Summary:

  • 2 New Stock Picks a Month and Lists of 5 Best Stocks to Buy Now
  • Immediate Access to All Their Recent Picks
  • Makes Investing Stress-free and Easy; They Even Tell You When to Sell
  • Last 5 Years Average Return of 219% vs SP500 80% and 83% Accuracy Rate
  • Retails for $199 a Year with a no risk, 30 day money back guarantee
  • Current Promotional Offer to New Subscribers Only:   Try it for 12 Months for just $99.

Motley Fool Stock Advisor Conclusion

So… is the Motley Fool Stock Advisor worth the money?

The answer is a definite YES.

Of all the stock subscriptions I have tried over the years, Tom and David Gardner's Stock Advisor gives you the greatest bang for your buck and is most definitely worth the $99 for the first 12 months for new subscribers.

I've been a paying customer to the Stock Advisor subscription for over since 2016.  I buy $1,000-$2,000 worth of each of their 2 specific stock picks every month.  I wrote this Motley Fool's Stock Advisor Review so others can see how great the Fool's Stock Advisor service picks have been for me over the last 5 years.

As I stated at the beginning of this review, my portfolio has outperformed the SP500 by an average of 139% over the last 5 years so I can definitely say it's been worth it.

The biggest negative experience is:

  • With over 1,000,000 subscribers, there is definitely a Fool Effect on the stock prices. Within the first few hours of getting a recommendation, the price of the stock typically shoots up $2 or $3 so I have learned to get my order in quickly.

The Motley Fool Stock Advisor Service Compared to Their Rule Breakers Service

The Rule Breaker stock picking service works in much the same way as Stock Advisor.  They both consistently beat the market, release 2 stock picks per month, and are best for long term investors.  The differences are:

  • Rule Breakers picks are coming from just David Gardner and his team
  • These stock picking tips focus on high-growth stocks that they feel are poised to be market leaders
  • The results are much more volatile than the Stock Advisor's

The Motley Fool Rule Breakers picks have higher returns over the long run, but more variance as well.  So if you missed out on just one Rule Breaker pick each year, your results could be significantly worse.

For more information on Rule Breakers, see our Motley Fool Rule Breakers Review article.


BE SMART, BE AHEAD OF THE CROWD: Get the next Fool pick in real-time by CLICKING HERE. It comes out Thursday, Oct 28.

Sours: https://www.wallstreetsurvivor.com/motley-fool-review/
Motley Fool Stock Advisor Review - An Inside Look!
Motley Fool Rule Breakers vs Stock Advisor

Motley Fool Subscriptions

The Motley Fool offers two very popular stock picking services; Rule Breakers and Stock Advisor. Both have out-performed the market by a wide margin and both focus on stocks with long-term growth in mind. Both are very complimentary so for those interested in both services the best deal is their bundle offer.

Let’s jump right into the comparison of the two investing services so you can decide which or both is right for you.


Motley Fool Rule Breakers

Rule Breakers is run by David Gardner and has been providing monthly stock recommendations since 2004, let’s take a closer look at some of the services best picks, recent picks and to-date performance.

A $500 investment in these 5 Rule Breakers picks is worth $217,418 today.

Rule Breakers Stock Picks (2004 to 2021)ReturnAnnualized Return
Intl E-comm Company14,362%1,448%
EV Company10,544%832%
E-commerce Company6,859%414%
Robotics Company6,683%1,179%
Gaming Company4,535%269%

Click Here to See the Latest Rule Breakers Picks (Oct 24, 2021)

These recommendations have beat the S&P 500 by 21.8X with an average return of 8,597% or 829% annually.

All returns are calculated from the date of recommendation to present. While these are the best performers the average Rule Breakers pick has returned 352% which is 2.9X the S&P 500.

Recent Performance

We know that Rule Breakers has had some huge all-time picks, but how have their more recent picks performed? Let’s take a closer look and find out.

Top Rule Breakers Picks From 2016 to 2021

These are the best stock picks from the Rule Breakers service from 2016 to 2021. The service releases two new stock picks per month.

Rule Breakers Stock Picks (2016 to 2021)ReturnAnnualized Return
Shopify (SHOP)6,683%1,179%
The Trade Desk (TTD)2,056%441%
Specialty E-commerce Company1,739%354%
MongoDB (MDB)1,468%410%
Atlassian Plc (TEAM)1,311%262%

Q4 2019 – Rule Breakers Stock Picks

The Q4 2019 Rule Breakers picks have beat the market by 4.2X with an average return of 226% compared to 55% for the S&P 500.

Rule Breakers Stock Picks (2019 to 2019)ReturnAnnualized Return
Specialty E-commerce Company477%249%
Cloud Company400%200%
Consumer Exercise Company192%105%
Pet Food Company165%90%
Medical Tech Company65%36%
Medical Device Company60%30%

Latest Rule Breakers Picks

Here are the latest Rule Breakers stock picks. The last pick (released on Oct 14th) is a fast growing information technology company with over 60% YoY revenue growth forecasted.

Latest Rule Breakers Stock Picks 202130 Day GainsRevenue Growth Forecast
Rule Breakers Pick (Oct 14)12%61%
Rule Breakers Pick (Sep 23)23%214%
Rule Breakers Pick (Sep 9)-1%53%
Rule Breakers Pick (Aug 26)12%61%

Next Rule Breakers Pick

The next Rule Breakers pick will be released on Thu, Oct 28th. You can access the next couple picks and all past picks risk free for 30 days.

Rule Breakers Release ScheduleRelease Date
New Stock PickOct 14, 2021
5 Best Buys NowOct 21, 2021
New Stock PickOct 28, 2021
New Stock PickNov 11, 2021

Click Here to See the Latest Rule Breakers Picks (Oct 24, 2021)


How Does Rule Breakers Work?

Rule Breakers is built on the conviction that investing early in great high-growth companies for the long-term will produce the highest returns. The teams mission is to find tomorrows great growth stocks before Wall Street does. Some of the best examples include Tesla, MercadoLibre and Intuitive Surgical.

In order to have the best success in growth stock investing Rule Breakers has developed an investing criteria which helps identify the very best growth investments with the highest chance of long-term sustainable growth.

Not every company will encompass all six of the investment criteria, however those that do have a record of extraordinary growth over a long period of time.

Rule Breakers Investment Criteria

  1. First to market or “best in class” in an emerging industry.
  2. Sustainable advantage from momentum, patents, leadership or lacking competitors.
  3. Strong historical price appreciation.
  4. Strong management team with “smart backing”.
  5. Brand with strong consumer appeal.
  6. Companies believed to be overvalued by the mainstream.

High Growth Trends

The world is always changing and learning how to capitalize on powerful growth trends can lead to great investment opportunities. Investment trends like…

  • Streaming media
  • The digital payment revolution
  • Cloud computing
  • Remote work
  • Online advertising
  • e-commerce
  • Tele-medicine

What You Get with Rule Breakers

What you get with Rule Breakers is much more than just monthly stock picks. Investing mistakes can be extremely painful and Rule Breakers provides an incredible education from phenomenal investors with time-tested investment knowledge which is truly an invaluable benefit of being a member.

Here are some of the most important things you get with a Rule Breakers subscription.

New Stock Picks:Two new stock picks are released per month. Each pick comes with a buy recommendation report.

10 Starter Stocks: “Starter Stocks” are provided to all members and meant to provide a foundation to newer portfolios with a risk and reward balance.

Best Buys Now: Bi-weekly the team releases a list of 5 “Best Buys Now” stocks which are the current highest conviction picks from the Rule Breakers portfolio.

Scorecard: Every stock pick since 2004 is tracked on the Rule Breakers scorecard covering returns, recommendation date, link to buy report, return to date, return vs benchmark and more.

Access to Motley Fool Live!: 8 hours daily live streaming programs offering deep dives on stock picks, CEO interviews, investing mindsets, Q&A and more.

Premium Content: Industry reports and articles covering the domains of Rule Breaker’s picks including….

  • 5G Revolution
  • Autonomous driving
  • Next Gen Entertainment
  • The Next Amazon
  • The future of streaming
  • iPhone Supercycle

Tools: Asset allocation tool helping structure a portfolio according to risk tolerance and time horizon.

Investor Community: Gain access to a large community of investors, sharing stock picks and investment strategies.

Price of Rule Breakers: $99/year (for new members) which is 67% off the regular price of $299/year and comes with a 30-Day Money Back Guarantee.

Click Here to See the Latest Rule Breaker Picks (Oct 24, 2021)


Motley Fool Stock Advisor

Stock Advisor is led by co-founders David and Tom Gardner and just like Rule Breakers they release two stock recommendations per month.

Stock Advisor is a great option for those building a new portfolio. In addition to the two new stock picks each month you’ll also get 10 starter stock which are the best long term investments from past recommendations. Additionally two times per month you’ll get 5 stocks which are the best timely buys right now.

The Stock Advisor team continually tracks the performance and developments of all past recommendations and these timely buys are based on the past picks that present the best buying opportunity right now.

A big difference between Stock Advisor and Rule Breakers is that both David and Tom each provide a stock recommendation based on their investing criteria, while Rule Breakers only features picks from David Gardner.

As part of Stock Advisor David’s picks focus on companies with “undeniable, long-term trends” and “unquantifiable greatness” ideally wanting to get in early and adding to his positions as the growth continues.

Tom’s picks focus on great companies in “beaten-down” but still relevant industries ideally with strong management ownership.

Overall Performance of the Stock Picks: Average pick’s up 504% compared to 95% for S&P500.

Price of Stock Advisor: $99/year (for new members) which is 50% off the regular price of $199/year and comes with a 30-Day Money Back Guarantee.

Click Here to See the Latest Stock Advisor Picks (Oct 24, 2021)


Stock Advisor vs Rule Breakers – Final Thoughts

Overall both services have long track records of beating the market and both are $99/year for new members making it easy to recommend either service as they provide great value.

Stock Advisor has a more open ended investing approach and may appeal to more investors while Rule Breakers focus is strictly on disruptive growth companies that tend to focus largely in the tech space and come with greater volatility in the short-term.

Both services work in a very complimentary way and will give you greater exposure to high quality, growth stock picks and thus if you can afford we recommend trying both. Both come with a 30-day money back guarantee so you don’t have much to lose.

If you only want to try one, we recommend starting with Stock Advisor first and then add on Rule Breakers at a later point after you have started building out a portfolio.

Click Here to Try Stock Advisor Risk Free for 30 Days (Oct 24, 2021)

Rule Breakers FAQ

How much does Rule Breakers cost?

Rule Breakers is offering one year access for $99 (for new members), which is $200 off from their regular price. Rule Breakers is also available inside of a special bundle deal which includes Stock Advisor and Rule Breakers together for just $199/year for new members, which is $300 off the regular price of $499/year.

What type of stocks does Rule Breakers recommend?

Rule Breakers focuses on high growth companies that are often first to market or disruptive with their product, service or strategies. The core Rule Breakers belief is that investing early in these type of Rule Breakers high-growth companies for the long-term will produce the best returns.

Is Motley Fool Rule Breakers worth it?

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How do yo use Rule Breakers?

Motley Fool Rule Breakers is a source high growth stock recommendations that you can purchase with your own brokerage account. The service advocates for investing in great companies and holding them for the long term 3-5+ years with a portfolio size of at least 15 stocks.

The service provides…

1. Two new stock recommendations per month.
2. Monthly “Best Buy” stocks which are the teams highest conviction stocks from past recommendations.
3. 10 “Starter Stocks” which are their best long-term stock ideas which make a great foundation for new portfolios.

The service helps provide a great framework for new and seasoned investors to build winning portfolios. They provide and endless supply of helpful resources aimed at helping people with all aspects of investing including mindset and psychology, strategy and of course great stock recommendations. Probably the most understated value of any Motley Fool service is the community of like minded investors that you instantly become a part of.

Does Rule Breakers Give Guidance When to Sell?

Rule Breakers provides both buy and sell guidance, however it should be understood that the Rule Breakers investment philosophy is one of longer term investing and not trading. Their sell guidance is given when the investing thesis has changed for a given company and thus they give guidance and reasonings for why their long-term outlook for the company has changed and why they recommend to sell or hold.

Does Rule Breakers come with a Free Trial?

Motley Fool Rule Breakers comes with a 30-day money back guaranteed. This means that customers can try out the entire service and access all the recommendations, resources and tool before committing to a yearly subscription which is $99 for new members.

What are Rule Breakers “Starter Stocks”?

Rule Breakers gives subscribers 10 starter stocks which the team believes to be the best long-term, high growth opportunities from the Rule Breakers portfolio.

Rule Breakers advises investors buy at least 15 stocks and the starter stocks are meant to help new investors build out a strong portfolio with both growth and stability in mind.

»RELATED:Best Stocks to Invest in for the Long-Term , Full Review of Motley Fool Stock Advisor , Learn more about Motley Fool Stock Picks.

Sours: https://traderhq.com/motley-fool-rule-breakers-vs-stock-advisor-which-is-the-best-stock-newsletter/

Now discussing:

Motley Fool Review: Can the Stock Advisor Beat the Market?

Motley Fool Review

Product Name: Motley Fool

Product Description: Motley Fool has been offering stock recommendations and investment advice since 1993. Over two decades later, they are still one of the largest financial media companies in the world.

  • Price
  • Resources Available
  • Ease of Use
  • Quality of Research
  • Credibility

Summary

Motley Fool has been offering stock recommendations and investment advice since 1993. Over two decades later, they are still one of the largest financial media companies in the world. We did an in-depth review of their stock advisor program to see if it was worth the money. Here’s what we found.

Pros

  • 20-year track record
  • Consistently beats the market
  • Stock picks are easy to follow
  • Members get instant access to 20 starter stocks
  • 2 new stock picks monthly
  • Money-back guarantee

Cons

  • Upsells get annoying
  • Some stock picks are repeats

Review Navigation

About Motley Fool

Motley Fool is one of the most well-known multimedia companies in the financial industry. The company was originally founded in July 1993 by David Gardner and Tom Gardner, who still run the company today. The company provides a combination of both free news (similar to sites like MarketWatch and Yahoo Finance) as well as premium financial advice and investment newsletters. This is no small operation. Our Motley Fool review takes a closer look inside this operation to see whether or not the company is legit.

Tom and David Gardner

Motley Fool now employs over 300 people and is recognized as one of the top companies in the space. In addition, the company has maintained a positive reputation and is most well-known for its stock-picking service, Stock Advisor.

Motley Fool Stock Advisor Program

Motley Fool’s Stock Advisor program is a subscription service that offers premium stock picks backed by extensive research. Members get two new stock picks every month, as well as access to a list of all of the stock picks the company has ever made.

The Stock Advisor service claims to beat the returns of the S&P 500 by selecting high-growth stocks that are set to outperform the overall stock market. Since its inception, the stock advisor picks have returned 522%, compared to 103% returns from the S&P 500. This is no small feat.

Using the program is incredibly simple. The company tells you the best stocks to buy, and then you can purchase them in your brokerage account.

So, what exactly does the program offer? Keep reading our Stock Advisor review for an in-depth analysis of the program and its effectiveness.

Monthly Stock Picks

The Motley Fool Stock Advisor service offers a few benefits, but the biggest value comes from the monthly stock recommendations. Subscribers will receive two new stock picks every month. These stock recommendations come from Tom and David Gardner, the company’s co-founders.

If you are just starting to build your stock portfolio and you would like to start diversifying right away, Motley Fool has two options for you.

First, there is the “starter stocks” report. The starter stocks report includes a list of 10 great stocks you can use to build a strong foundation for your investment portfolio. These stocks include time-tested companies that have proven to be great investments in the past and are likely to remain great investments in the future.

The Motley Fool also includes a list of the “Best Stocks to Buy” right now. This list includes recent Stock Advisor picks that still present great buying opportunities. Similar to the Starter Stocks, these can be added to your brokerage account right away (vs. waiting for the two new picks every month). Below is a screenshot of the best starter stocks and best stocks to buy from 2018. Two years later, these stocks have yielded exceptional returns (more on this later). Shopify (SHOP) alone is up over 700% from the time of the recommendation.

Motley Fool Stock Advisor Dashboard

Of course, this list of starter stocks is updated regularly, and the current 2020 list includes stocks that should yield exceptional returns in the coming years. For example, here is the 3-month performance of the 12 starter stocks I invested in recently:

Motley Fool 2020 Performance

36% returns in three months is an impressive return!

Here are the returns one year after creating the initial portfolio:

Motley Fool 2021 Performance

The Motley Fool Stock Advisor service offers a handful of subscriber benefits, but these Stock Advisor picks are the reason I’ve been a subscriber for years. Most members sign up because they want simple stock picks and investment advice that is easy to follow. Motley Fool certainly delivers (we will get to this in detail later).

If you are looking for stock recommendations that beat the market, Motley Fool absolutely delivers. Feel free to sign up using the discounted link below.

Claim Your Motley Fool New Member Discount  >>

If you want to learn more about the company, keep reading our Motley Fool review to learn everything you need to know. Of course, you can feel free to skip around the review to find the sections you are most interested in. If you have any additional questions, just leave a comment below.

Stock Research

The Gardner brothers do extensive research on the stocks they recommend. These aren’t basic “stock tips” you may get at a family dinner or business luncheon. Motley Fool’s Stock Advisor picks are all backed by extensive research. As a member, you will have access to a report that explains the stock recommendation and rationale. This research is thorough and includes commentary on the company, sector, and general market conditions.

While some people just want the stock picks, others prefer to understand why the stocks are being recommended. As an investor, it can add some peace of mind to understand why you are buying a stock (vs. simply following a recommendation). Regardless, the newsletter caters to both groups. You don’t have to read the research reports, but they can be helpful.

The research can make you feel more confident in the stocks you add to your portfolio. The reports also shine a light on how the Motley Fool analyzes stocks, which can be an educational experience.

Motley Fool Amazon Report

Education

Stock Advisor membership comes with access to additional educational resources related to investing in the stock market. The members’ area contains market news as well as general investment lessons. While the stock tips are the star of the service, the educational content is a nice perk.

There are articles that explain the methodology the Gardner brothers use to research stocks. There are also a few basic guides to investing. In addition, you can get access to investing information that may help you if you want to better understand the investment advice and stock picks you get from the company.

Stock Advisor Education

The website’s members’ section offers a community forum where members are free to discuss stock picks and general investing concepts. The forum is surprisingly active and serves as a nice community to network with other investors and exchange ideas.

You’ll find members talking about stock ideas and supporting new members who have questions about the service or investing in general. The forum is a good place to go to talk shop, ask questions, or get stock tips from other members. Of course, you should never rely on financial advice from strangers online, but it’s nice to get feedback from an investment community from time to time.

Community Forums

 

How Good Are Motley Fool’s Stock Picks?

As mentioned above, most investors sign up for the Stock Advisor subscription to receive stock recommendations. Investors are looking to recoup the cost of the subscription through superior stock picks. As part of our Motley Fool review, we wanted to see how well these stock picks performed.

We are happy to report that, over time, the newsletter’s stock picks have outperformed the stock market (and the company has a 15+ year track record to back it up). In addition, the stock recommendations are generally large-cap companies with lower risk than small caps and micro caps.

Claim Your Discount on Motley Fool >>

Additionally, the company provides multiple stock recommendations every month, giving investors the opportunity to choose from multiple stocks. As a member, you can find a list of all stock picks, including data about:

  • The stock recommendation date
  • The company ticker
  • The market cap
  • The risk level
  • The performance since the recommendation (and relative to the S&P 500)

It’s beneficial that all stock picks are listed in a convenient table. This allows new members to analyze the performance and make decisions accordingly. Here is an example (to be fair, I’ve included historical picks instead of the most recent picks):

Motley Fool Historical Recommendations

Some of the stock recommendations are companies you would expect to find on the list (such as Amazon and Apple), while others are hidden gems. Every stock recommendation is well-researched and backed by a full research report.

The team does a great job of presenting the “full story” in the research reports. They do not hype up positions in an attempt to get investors to buy the stock immediately. Instead, they share their bullish arguments while addressing any bearish counterarguments. A risk rating accompanies most stocks to allow investors to decide whether or not the stock fits their strategy.

Motley Fool Risk Scale

The company is also quick to jump on shorter-term market trends with special reports (such as its recent cannabis stock boom).

Motley Fool Special Report

Overall, the stock recommendations are well-researched. However, it’s important that new investors understand broader market conditions before entering a position in any of these stocks. Because most of these stocks are large caps, they tend to fluctuate relative to the broader market. While their performance is not interlinked, there is still a correlation. For example, during a strong bull market, most stocks will perform well (and the program’s picks are likely to outperform). However, during correctional periods, investors should be more cautious.

Motley Fool Performance 2020

At Top Trade Reviews, we pride ourselves on our thorough, up-to-date reviews of financial services. Accordingly, we wanted to update our Stock Advisor review to reflect the Fool’s performance in 2020.

2020 has been a crazy year for the stock market. Stocks have been on a wild ride over the last 12 months. We saw one of the most rapid declines in the stock market, followed by one of the most rapid recoveries. So, how did Tom and David Gardner’s picks hold up during this time? Let’s take a look.

Subscribers have access to the company’s full track record. You can see every single stock recommendation and how the stock performed.

As of August 2020, the Motley Fool Stock Advisor service has offered 15 stock picks. You can find the full list of 2020 Motley Fool stock recommendations below (with the company names removed out of respect for paying subscribers):

Motley Fool 2020 Performance

This table shows the recommendation date, the recommendation price, and the stock’s return since the time of the recommendation. This is benchmarked against the performance of the S&P 500 from the date of the Fool’s recommendation. As always, you can see that the company is transparent and shows both winners and losers.

Let’s dive into these results to see how well the program’s stock picks really performed.

  • The average share price of the stocks was $206.67. (Note: a stock’s share price doesn’t really matter, but some people like to know this)
  • Of the 15 stocks, there were 10 winners and 5 losers
  • The average return of a winning stock pick is 70%
  • The average return of a losing stock pick is -25% (Note: this is weighed down heavily by one really poor stock pick that had a -94.1% return)
  • The average return overall is 38%
  • The average return of the S&P 500 is 11.75% (using the same “buy” dates as the stock recommendations)

Notable stock picks include:

  • Tesla (TSLA) – Recommended on January 1, 2020 (Up 848.4%)
  • Zoom Video Communications (ZM) – Recommended March 19, 2020 (Up 249.9%)
  • Shopify (SHOP) – Recommended (again) on April 2, 2020 (Up 320.3%)

What does this mean for your portfolio?

Let’s assume you put $1,000 into each stock pick for a total investment of $15,000 throughout 2020.

  • As of today, your $15,000 investment in Motley Fool stock picks would be worth $20,740, representing a profit of $5,740.
  • If you had invested that same $15,000 in the S&P 500, it would be worth $16,762, representing a profit of $1,762.

Motley Fool’s stock picks would have made you an extra ~$4,000 over the year.

If you only put $100 into each stock pick for a total investment of $1,500, here’s what the results would look like:

  • Motley Fool Stock Picks: $574 profit
  • S&P 500: $176 profit

Even with a small $1,500 portfolio, Motley Fool’s stock picks would have made ~$400 more than an investment in the S&P 500 (via an ETF or mutual fund).

This is quite an impressive feat. Even with small accounts, it’s relatively easy to recoup the membership fee.

Motley Fool Performance 2021

So far, in 2021, the Motley Fool has made a few new stock pick recommendations. The top-performing pick is up 86% in the past 30 days alone.

One recommendation is particularly interesting, seeing as it is a recent IPO. The company has also issued updated buy alerts on some recommendations from previous years.

As of today, members have access to:

  • 11 “Best Stocks to Buy Now”
  • 10 “Starter Stocks”
  • 18 Stock Picks (2 alerts issued each month)

Meanwhile, last year’s stock picks continue to perform exceptionally well. Six stocks have generated returns of over 100% (with the top stock pick generating a return of over 600%).

We will continue to update our Motley Fool review as more picks are made throughout the year.

Motley Fool’s Investment Strategies

Some investors simply want to know what stocks to buy and at what times. Other investors prefer to learn more about the rationale behind the financial advice they receive. There’s a wide range of investing strategies, such as momentum, value, and growth. So, how do David and Tom Gardner choose their stocks?

Motley Fool Investing Principles

Motley Fool Investing Principle 1 of 7

The company takes a well-rounded approach to its investment research. They account for broader market factors, sector trends, and the overall health of the companies they recommend. Fundamental research plays a major role in the decision-making process. The research team tends to assign a weight to both value and momentum plays. They seek to identify undervalued companies with positive catalysts on the horizon.

Personally, I find this to be a favorable strategy as it provides the best of both worlds. Investors can take advantage of undervalued stocks without waiting years for the markets to recognize the companies’ true values. While the recommendations are designed for long-term investors, they can also yield exceptional returns in the short run if you would like to take profits early.

The stock picks of this investment newsletter are time-tested. The company has been researching stocks for over two decades.

Here’s a great video of the company’s co-founder, David Gardner, explaining his process in more depth:

While you don’t need to understand the company’s investment methodology fully, you should understand how to make the most of the stock picks. Motley Fool makes two key recommendations for investment success.

Rule #1: Hold Positions for At Least 5 Years

Motley Fool recommends holding any stock you buy for at least five years. These are long-term stock picks and should be treated as such. The company’s research shows that holding the recommended stocks for at least five years can significantly increase the probability of generating positive returns.

Motley Fool Investing Principle 1

While many stocks perform well from the dates of the recommendations, the most impressive returns come from holding a stock for many years.

This rule also protects investors from short-term stock price fluctuations that can diminish returns. For example, Apple’s stock dropped 35% in the first few months of 2020, but it is now up close to 200% from its 2020 lows. Investors who “panic sold” paid the price. Investors who held for the long run are still reaping the rewards.

Rule#2: Diversify Your Portfolio

Motley Fool also recommends the widely accepted investment strategy called “diversification.”

The stock market is inherently risky, and the stocks you buy can drop in price. Diversification helps investors minimize risk by spreading it across multiple stocks. Think of it as the investing equivalent of “not putting all of your eggs in one basket.”

Motley Fool Investing Principle 2

Motley Fool recommends building a portfolio of at least 25 stocks (which you can choose from the recommendation lists)

Is The Motley Fool Legit?

Motley Fool brings to mind different things for different investors. Motley Fool is the reliable stock picker for maverick investors who have been around for over a decade. For newer investors, the investment media giant is more known for “double down stock picks” and “triple buy alerts.” So, which side is more accurate? Is the company a legitimate stock picker or simply a promoter?

In short, The Motley Fool is absolutely legit.

While the Motley Fool has become more aggressive with its marketing over the past few years, the company’s core services remain the same. The Stock Advisor program is still as effective as ever, and it remains one of the best-priced programs on the market. There is one caveat, though.

As a diligent investor, you need to be able to look past the hype and avoid FOMO (fear of missing out). In our Motley Fool Review, we were focused on the quality of the Stock Advisor program. So we ignored the hype and focused on the quality of the information and the program’s recommendations.

Motley Fool will try to upsell you on certain services through marketing emails and promotions. While you’re welcome to explore these other Motley Fool services, I recommend sticking with the Stock Advisor service. It’s simple and effective. Plus, how many stock alerts do you really need? If you build a portfolio with a few great stocks, you will be good to go. You don’t need to sign up for a bunch of different investing services to make money in the markets. While the company offers a lot of great services (like Motley Fool Options), don’t get carried away with the hype. Instead, focus on getting the investment advice you actually need.

Is the Stock Advisor Program Worth the Money?

The Motley Fool Stock Advisor Program is one of the most fairly priced programs available. Some research services and investment newsletters charge hundreds of dollars per month for their stock recommendations, but Motley Fool is affordable. One of the things we were most impressed with during our Motley Fool review was the pricing. We have reviewed investment newsletters that charge upwards of $1,000 per year, but Motley Fool’s pricing is much more affordable.

A Stock Advisor subscription can be purchased for $19 per month or $99 for the year (for new members only). Both plans renew automatically unless canceled.

Stock Advisor Pricing

At this rate, the Stock Advisor service is absolutely worth the money. At only $99 for the year, Motley Fool Stock Advisor is easily our top-rated stock picking service. A single stock recommendation can make back the cost of the subscription ten-fold.

I recommend going for the annual subscription for a few reasons. First, it is a way better price. You can purchase a full year of access for the price of five months on the monthly plan.

Second, the annual subscription is backed by a 30-day money-back guarantee. If you are unhappy with the service within the first 30 days, you can reach out to the customer service team to request a full refund. The 30-day money-back guarantee allows customers to take advantage of the better annual pricing without getting locked into a subscription they don’t want.

Lastly, you really need access to a Stock Advisor subscription for more than a month to get the true value out of it. The company makes two new stock picks per month, and members are encouraged to build a diversified stock portfolio. It is recommended that you sign up for a full year to get the most value out of the service. If you only join for a month, you may miss out on some of the year’s best picks.

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How to Make the Most of the Service

I have been a member of the Stock Advisor service for the past few years. While the service is straightforward and easy to use, I have found a few tips and tricks that help me make the most of the membership. Here are some insights:

Diversify Your Portfolio

In the stock market, diversification can help you minimize your potential risk. By building a diversified portfolio with multiple stocks, you will not be exposed to too much risk from a single company. If you look at the Fool’s track record, you will see that the portfolio succeeds in part by diversification. There are both winning and losing positions, but the winners far outnumber (and outperform) the losers. This is achieved by spreading risk across a variety of different investments vs. heavily weighting a portfolio on a single stock. While it would be nice to maximize your return by only choosing the best picks (i.e., “Amazon” and “Zoom Video”), it’s unlikely that you will be able to predict that type of performance accurately. The best thing you can do is diversify.

Here is the portfolio allocation the company recommends for your brokerage account:

Motley Fool Stock Portfolio

If you are new to investing, start by checking out the Fool’s starter stocks and best buys now so you can build a strong foundation. From there, you can continue to add new stocks as the company issues new alerts.

The Motley Fool’s official recommendation is that members should buy at least 25 stocks with a five-year time horizon.

Focus on the Long-Term

If you are investing in the stock market, you need to focus on the long-term. Day-to-day price fluctuations are just noise, and, as an investor, you need to be able to handle them. Just take a look at the S&P 500 chart from the past 50+ years:

SP500 Long-Term Chart

The market dropped almost 50% during the 2008 recession before nearly quadrupling into 2020. At the time, investors were panicking. In retrospect, we can see that the market recovered as always. Investors experienced a similar shock in early 2020 when the market dropped ~35% in a month. Here we are in October of 2020, and the market has already recovered.

When you invest in Motley Fool stock picks, focus on the bigger picture. Decide how long you want to hold the stocks for and then leave them alone. If you are particularly risk-averse, set stop losses wherever you are comfortable (i.e., 10%).

How Does the Service Compare?

If you’re still unsure about using Motley Fool’s Stock Advisor program, see how it compares to similar investment services below. We’ve reviewed all of the top stock advisory services, and these are our insights.

Motley Fool Stock Advisor vs. Rule Breakers

The Motley Fool offers a handful of premium investment services, but the most popular are the Stock Advisor and Rule Breakers programs. Many investors are torn between the two, so we felt it necessary to make a quick comparison. You can read our full Motley Fool Rule Breakers review here.

Both programs have the same membership fee of 99/year or $19/month. The main difference between the services is the investment methodology used to pick the stocks.

The Stock Advisor program is the company’s flagship service. This service offers investment recommendations based on the methodology that made Tom and David Gardner renowned figureheads in the world of investing. Rule Breakers is a follow-up service primarily built on David Gardner’s methodology.

Both programs seek to identify stocks poised for exceptional long-term returns. However, Rule Breakers is more focused on growth stocks. In this sense, Rule Breakers is just a more narrowly-focused stock picking service.

We believe that the Stock Advisor program is more favorable to Rule Breakers for a couple of reasons. First, you get access to more stock picks and resources. Second, the Stock Advisor program is clearly the flagship service. It’s the service that made the Fool famous, and it even contains a lot of the elements of the Rule Breakers service.

When in doubt, you can’t go wrong with the Stock Advisor program.

If you sign up for the Motley Fool Stock Advisor service and find that you want even more stock picks, you can check out the Rule Breakers program. These programs actually work out very well together.

Motley Fool vs. Zacks

It’s hard to make an “apples to apples” comparison between Motley Fool and Zacks. While the services share similarities, they are also very distinct. Zacks is best for investors who want to combine their own research with Zacks’ proprietary tools. For example, Zacks gives every stock an automatic “Zacks Rank” rating. This rating is convenient when doing research on a lot of stocks. However, it can also make it difficult to narrow down the best stocks.

Motley Fool takes a different approach. The stock advisor program is a true “hands-off” approach to investing. The Fool’s team does the research, and all you need to do is follow the stock alerts. Of course, you should do some of your own research as well, but you don’t need to waste time filtering through a bunch of stocks. Motley Fool is an easy-to-use stock picking service that gives you investment advice that is easy to follow.

Zacks is best for investors who do in-depth research, whereas Motley Fool is best for investors who want to be given stock picks.

Motley Fool vs. Jim Cramer

Motley Fool and Jim Cramer are easily some of the most well-recognized stock pickers. Tom and David Gardner run Motley Fool, whereas Jim Cramer runs Action Alerts Plus. We thoroughly reviewed and compared both programs to see what the absolute best stock picking service was. After our Motley Fool review and Action Alerts review, we came to a clear conclusion.

We found that Motley Fool’s Stock Advisor program was better than Action Alerts Plus in almost every category. Both services provide stock pick alerts, but we much preferred everything about the Stock Advisor program. The Stock Advisor program is more diverse, easier to use, and costs less money.

Motley Fool vs. Robo-Advisors

Robo advisors have become increasingly popular over the past few years. Services like Betterment and Wealthfront allow investors to create customized portfolios in a matter of minutes. Essentially, robo-advisors simplify investing for casual investors. Instead of choosing individual stocks, investors can choose their investment goals and risk thresholds, and the robo-advisory program will automatically create a portfolio (mostly consisting of ETFs).

While both The Motley Fool and robo-advisors cater to investors who want help building their portfolios, the two services are very different. For example, robo-advisor portfolios consist primarily of ETFs (funds), whereas the Stock Advisor program recommends individual stocks. Accordingly, this is not an “apples to apples” comparison.

Automated portfolios tend to mitigate risk through diversification, whereas individual stock picks aim to beat the market returns exponentially. You shouldn’t expect to see annual returns of over 20% on a robo-advisor portfolio, whereas those returns are entirely possible with an individual stock pick.

So, which one is right for you?

If you want a “set and forget” investing option, robo-advisors may be a good fit. However, if you want to beat the market and achieve exceptional returns, the Stock Advisor program is a better bet. Of course, you need to be able to monitor and manage your positions, but the potential upside is much higher.

Motley Fool vs. The S&P 500

Many investors are aware of the fact that the majority of funds do not beat the S&P 500 (also referred to as “the market,” “market index,” or “broad market”). This is generally the case with robo-advisors as well (which we discussed above).

In most cases, if you are looking at diversified portfolios and/or mutual funds, you’d be better of going with a broad market S&P 500 ETF, such as the SPY. Historically, these broad market funds and ETFs beat diversified and specialized funds. That said, the Stock Advisor program is not a fund.

The Gardner brothers, who run the SA service, aim to find stocks that beat the market and achieve exceptional returns – and they’ve been doing just that since 2002. They have a proven record of beating the market by a considerable margin. Since the launch of the Stock Advisor program, the Fool’s stock picks have yielded returns of ~374%, whereas the S&P 500 yielded returns of ~100%.

Final Thoughts on Motley Fool Stock Advisor

The Motley Fool Stock Advisor program is ideal for investors with long-term horizons. Over time, these stock recommendations have outperformed the market and provided exceptional returns. Motley Fool stock recommendations have beaten the stock market by over 400% since inception, and the company has been at it for over 15 years. That’s really all you need to know. We were pleasantly surprised by everything we uncovered during our Motley Fool review.

At only $99, you can’t go wrong with the Stock Advisor service. You will get excellent stock advice, great long-term stock recommendations backed by research, and two new stock picks per month. Furthermore, memberships are backed by a full refund guarantee to ensure customer satisfaction. It’s rare to find a stock advisory program that is effective, affordable, and time-tested, and this program certainly checks all of those boxes.

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