Is Motley Fool worth it? Here’s what you need to know

Motley Fool is a financial services company based in Alexandria, Virginia. The company was founded in 1993 by two brothers Tom and David Gardner.

The company first gained notoriety in 1994 in the month of April fools A joke where the sewage disposal company promoted it through message boards.

the problem? The company didn’t really exist.

Tom and David wanted to teach people a lesson about the risks of investing in penny stocks. The trick apparently worked, as it was picked up by several big-name outlets, incl The Wall Street Journal.

Subsequently, she posted many investment tips and advice through mediums such as AOL in its early days.

In 2002, it launched what would become its flagship investment advisory service known as Stock Advisor. The bread and butter of the service has always been its monthly stock picks, which it emails on the first and third Thursdays of the month.

However, it does include plenty of other valuable features, such as a preview stock list, best buys now, and in-depth stock analysis. And now, it even keeps a list Exchange traded funds (Exchange Traded Funds) in the Best Buys Now section for those who prefer easier diversification.

You can’t go wrong with the price. Speaking of which, the regular cost for an annual subscription to Stock Advisor is $199 ($16.58 per month).

However, we have a special deal for you: instead of $199, if you join Stock Advisor using our link, you’ll only pay $89 for your first year. That’s less than $7 a month!


The Return of the Motley Fool

You probably want to know what kind of returns you can expect from a Stock Advisor. Fortunately, Fool publishes the exact average return for all of its picks since its inception. The number is updated frequently, but it is for now more than 600%.

Of course, the service has been around since 2002, and you could argue that they were “lucky” enough to choose Netflix in 2004.

While choices like that were undeniably great, that didn’t mean she was lucky. As mentioned earlier, The Motley Fool studies each stock at length to ensure it’s a high-quality company primed for success.

I started a portfolio of Stock Advisor shares using M1 Finance in June 2020, and the results are great. So far, my return is better than 575% in that short time:

In other words, my results were about as good as the average Stock Advisor return even though we weren’t exactly watching the next Netflix. (Sorry, Peacock.)

Of course, I invested just over a year, but getting almost 6x return in about 16 months is excellent.

Read more: The Motley Fool review: Can a stock advisor beat the market?

The Motley Fool Epic Bundle

As a standalone service, Stock Advisor provides excellent value to retail investors. However, Fool’s offers more than one stock recommendation service; It even offers services that can double as investment strategies for retirement planning!

However, it gets quite expensive if you decide to get your wallet tips through separately purchased Motley Fool subscriptions. Luckily, The Fool has come up with a cheaper alternative that lets you save money while tackling multiple financial goals at the same time: it’s called The Motley Fool Epic Bundle!

This bundle contains four of Fool’s subscription services: Stock Advisor, Rule Breaker, Real Estate Winners, and Perpetual Stock. Individually, these services will add up to a whopping $1,046 cost. However, you can purchase the Epic Bundle for only $499 per year.

Certainly, you will still be paying the additional subscription price (when compared to the Stock Advisor’s standalone price). However, I think it’s worth looking into since you’re basically getting two additional subscriptions – and a great portfolio – for free.

stock advisor

I’ve already gone through most of the Stock Advisor’s details in this article, but – since it’s part of the Epic Bundle – I’m going to give you another quick overview!

Stock Advisor is The Motley Fool’s flagship offering. At a cost of $199 per year (at full price), the service provides investors with monthly stock recommendations that they can then add to their portfolio.

Stock Advisor portfolio recommendations are primarily chosen with the amateur investor in mind. These stocks should provide good returns, provided you hold them in your portfolio for at least three years (as recommended by The Motley Fool).

Historically, a stock advisor has been very beneficial to long-term investors, with an average return of 358% (as of November 1, 2022).

rule breakers

Rule Breakers is the Motley Fool’s growth stock picking service. Unlike a stock advisor – which provides relatively safe monthly recommendations on stocks – Rule Breakers focus on riskier stocks with higher earning potential.

These destructive stocks generally do not perform as well as portfolio recommendations from Stock Advisor. This is likely because for it to be a “fading stock”, the stake would have to be from a company that has the ability to initiate a rollover. As we know, change doesn’t happen overnight and sometimes, you take one step back before you take two steps forward.

However, individual stocks that do this handily beat the stock market. One semi-recent stock recommended by Rule Breakers was Tesla. Since Rule Breakers first recommended the stock, it has offered a return of 12,551%. While it’s unrealistic to expect all stocks to warn Rule Breakers, it’s fair to say that those that take off balance out those that are standing still.

While Rule Breakers are technically suitable for investors of all experience levels, we recommend at least getting a little trading experience under your belt before trying them out. It is best for long-term investors seeking to diversify their investment portfolio. However, you should never rely on Rule Breakers for your entire portfolio.

Real estate winners

Diversification is an important part of successful investing (especially if your retirement planning revolves around your investments). After all, what else provides so much protection against massive changes in the market? Although we already covered two services that provide portfolio recommendations, one asset type was completely absent: real estate.

The Motley Fool offers an excellent real estate subscription for high-capital investors, but most of the best opportunities are only available to accredited investors. Plus, the service costs $2,499 per year, which is a much larger commitment than the average amateur investor would be willing to make.

Fortunately, The Fool also offers Real Estate Winners, an affordable subscription with a history of successful investing. This service provides subscribers with one real estate recommendation per month, which could be a REIT, crowdfunding option, or other types of real estate opportunities.

When combined with the previous two services, it is easy to see how the Epic Bundle can help you diversify your portfolio with ease. However, I always recommend taking the time to look into any investments before committing.

Eternal shares

While most of The Motley Fool’s stock recommendation service revolves around the idea of ​​holding a stock for five years or so, Everlasting Stocks proposes an interesting alternative: What if you could buy a stock and hold it forever?

Although more akin to an investment portfolio-building service than a stock picker, Everlasting Stock is another Motley Fool service with a history of success. So far, it’s offered returns of up to 578% to the average investor, though its short lifespan makes us wonder about its long-term performance. However, if it’s anything like the Fool’s other subscription services, we expect Everlasting Stocks to be another successful investment service that outperforms the overall stock market.

Is Motley Fool legit?

At this point, I feel it’s safe to say The Motley Fool is legit. why? One word: transparency.

A fool is not ashamed of his victories or losses, his ups or downs. In fact, one of the things Stock Advisors has access to is a performance page that shows the returns for every pick the company has ever made.

This includes stocks like Pacific Sunwear of California with a yield of -95%. Or how about Luckin Coffee, which has endured a Juice scandal involving fake buyers last year.

Pacific Sunwear closed in 2009, which meant the Fool stopped recommending it at that time. But Luckin Coffee is still an active recommendation despite its yield of -62.5%.

All this despite the fact that the average return for the program is still over 600%. They make it clear that you buy at least 15 recommendations (sometimes they say at least 30) because these errors will happen.

Should you subscribe to The Motley Fool?

Whether you should sign up for The Motley Fool comes down to what you want out of your wallet. With a stock advisor and other services, The Motley Fool puts you in control of your portfolio and delivers better returns.

Or you can even use their recommendations to invest in a portfolio of individual stocks at M1 Finance to complement your larger portfolio of ETFs/mutual funds. This is exactly what I do. I like the relative security and stability index fundsbut it’s nice to have a portfolio to the side with more upside potential.

In all honesty, I’m having a hard time finding the reasons Not To subscribe to The Motley Fool. Not only is it $89 for the first year with our link, there’s also a 30-day money-back guarantee.

You might hear some people talk about the excessive overselling of The Motley Fool. However, all of its communications are optional, which means you can easily opt out of marketing emails.

I highly recommend you give it a try and see what you think. If you really don’t like it, you can cancel up to 30 days in advance. But I doubt you will. And if you don’t, it’s only $89 for the first year. It’s hard to find a better deal these days!

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