THIS WEEK'S MOTLEY FOOL STOCK ADVISOR REVIEW (updated Sunday, February 28, 2021):
This Motley Fool Review is based on my personal experience of being a subscriber to the Motley Fool Stock Advisor service AND buying $2,000 of EACH of their stock picks since for the last 5+ years. I will analyze the results of the Motley Fool's picks and even share screen shots of my ETrade account below. All percentage returns are calculated based on closing prices of Friday, February 26, 2021.
In January 2016 I subscribed to the Motley Fool service AND I opened an ETrade account dedicated to buying all of the Motley Fool's stock recommendations. For the last 5 years I have purchased about $2,000 of every single one of their stock picks–that's a little over 120 stocks.
So this review is about just the FACTS regarding the Motley Fool Stock Advisor service and its performance over the last 5+ years.
Let's dive right in…
- The year 2020 is finally over. It was tough in so many obvious ways, but if you were a Motley Fool's Stock Advisor subscriber you had a GREAT year given the average return of their 2020 stock picks is 89% compared to the SP500's 21%, and 22 of their 24 picks are profitable.
- If you have been a subscriber for 2 years, then you know those 2019 Motley Fool stock picks are up 131% compared to the sp500's 36% so those picks are beating the market by 95%.
- And better yet, if you had been a subscriber for 3 years then you know the Motley Fool's 2018 picks are now up 222% so those picks have more than tripled already.
- While the stock market actually had a record setting year for 2020, the Motley Fool stock picks continue to drastically outperform the market because they have been so good at identifying the right stocks before everyone else does.
- Over the last 5 years (that's 120 stocks) the Motley Fool's Stock Advisor picks from January 2016 to December 2020:
- 88% of their 120 stock recommendations were profitable
- those 120 stocks have an average return of 201% compared to the SP500's 58%
- about half (56) have at least doubled
- 32 have at least tripled
- 21 have at least quadrupled in price
- That means if you had invested $1,000 a month in these stocks for the last 5 years, your $60,000 would have a $120,600 profit versus $31,800 had you matched the SP500
- Their recent stocks continue to drastically outperform the market:
- December, 2020 recommendation is already up 56%
- November, 2020 recommendations are up 53% and 39%
- October picks are up 88% and 9%
- Their September 3, 2020 pick of FVRR is already up 131% in 4 months.
- The Motley Fool January 2, 2020 recommendation of TESLA hit an all-time high last week and now that stock pick is up 685% in 13 months! ( I bought $1,700 of that stock on the day they recommended it and today I have a $12,000 profit! See the screenshot of my account below.
- The Motley Fool Stock Advisor has recommended one stock FOUR times in the last 15 months–and they were absolutely right: ZOOM VIDEO (TICKER:ZM). They recommended ZOOM July 3, 2019 when it was at $90; then again on Oct 3, 2019 when it was at $76; again on March 19, 2020 when it was at $123 and finally again on April 16, 2020 when it was at $150. Now the stock is at $373. THAT is exactly how the Stock Advisor gets its incredible returns year after year.
MOTLEY FOOL STOCK ADVISOR TIP: As you can see, they have done a fantastic job over the last 5 years. That period covered the 2016 election, the Trump presidency, COVID and the recent election. Now they are starting to release their stocks for 2021, the post-Covid world, and the Biden presidency. Their next stock recommendation is scheduled to be released Thursday, March 4, 2021. Don't miss out on their 2021 picks!
If that is all you wanted to know, then here's the link to their 50% off promotion page for new subscribers where you can save $100 and get their next 12 months and 24 picks for just $99.
If you want to learn more about the Motley Fool Stock Advisor and see the screen shots of my account, then keep reading…
With this Motley Fool Review, I'm going to tell you exactly what you need to know about this service:
- What you get when you subscribe to the Motley Fool Stock Advisor service
- The PROS and CONS of the service
- How profitable their stock picks have been over the last 12 months, the last 5 years, and since the inception of their service
- What percentage of their stock picks have been profitable and if they are beating the overall stock market
- How to order Stock Advisor at the cheapest rate they offer
- I will also reveal two important things I have learned about their service to maximize my profits from their service.
And I will provide you with some additional insights into the service.
For example, because you get 2 stocks picks a month and you should buy every one of their stock picks, it forces you to save money AND invest in the stock market every month. This is the concept of dollar cost averaging which helps to boost your overall returns!
So keep reading and many happy and profitable RETURNS!
Table of Contents
- What You Get
- My Motley Fool Experiment with My Real Money
- Their Best Stock Pick of 2020
- Fool Fact Checker
- Stock Advisor Results over the Last 5 Years
- Stock Advisor Results over the Last 12 Months
- Is the Motley Fool Worth The Money?
- How To Get Their Next 24 Stock Picks for Just $99
Motley Fool Fact Checker
Based on My Experience of Being a Paid Subscriber since 2016.
In this Motley Fool review, I’m going to show you exactly what you want to know about the Motley Fool Stock Advisor service. I will present just the FACTS from my personal experience.
Please note that not only have I been a paid subscriber for over 5 years, but I have also purchased $1,000 to $2,000 of EVERY one of their two stock picks each month in my ETrade account.
I will even share with you screen prints of that ETrade account so you can see for yourself exactly how the Motley Fool Stock Advisor picks have performed for me.
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? Those are the FACTS that I set out at the end of 2015 to determine for myself.
Since I have bought $1,000-$2,000 of EVERY stock the Motley Fool's Stock Advisor has recommended over the last 5 years, here are some MOTLEY FOOL FACTS you should know based on my personal experience:
Here is the summary of my Etrade account in which I have only purchased the Motley Fool Stock Advisor picks since January 2016:
- 88% of the Stock Advisor picks were winners
- From 2016 to 2020:
- 56 of their 120 stocks have at least doubled
- 32 of those have at least tripled
- and 21 of those have at least quadrupled
- Having that many stocks that double, triple or quadruple or more allows their average return of those 120 stocks to be 201% compared to the SP500 average return of 53%. This means they are beating the market by 148%
- Now here is the most important fact I can share with you: the normal price for the subscription is $199 a year, but they frequently run promotions of 10% to 50% off. I have bookmarked that promotion page for you: Here is the link to their 50% off promotion for new subscribers.
If you keep reading I will even share with you more screen prints of that ETrade account so you can see for yourself exactly how the Motley Fool Stock Advisor picks have performed for me. Most importantly, because I have 5 years of data, I will share with you just the FACTS about their stock picking performance.
- FACT: The 24 stocks from the Motley Fool's Stock Advisor 2020 recommendations are up an average of 89%.
- FACT: Their 2019 picks are up 131%.
- ANOTHER FACT: Their 2018 stocks are up 222% compared to the SP500's 45%.
- And another FACT you should know: their 2017 picks are up an average of 293% compared to the SP500's 67%.
- And the BEST FACT about the Motley Fool is their 2016 stock picks are up 371%, so the longer you hold them the better they do!
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.
Stock Advisor New Subscriber Offer:
(there's no risk, they offer 30-day money back guarantee)
Motley Fool Stock Advisor Summary
Here's What You Get:
- Two brand new stock recommendations and analysis per month delivered in real-time to your email.
- Access to all of the Motley Fool's Stock Advisor recommendations they made in 2020, 2019, 2018, 2017 and 2016.
- 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.
- The Motley Fool's Top 5 Starter Stocks report that features the ideal stocks that should be the foundation of new investor's portfolios.
- 24/7 Monitoring: They will let you know when they believe it's time to sell any of their stocks
- Toll-free customer service. Yes, real people answer the phone.
- 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 570% since inception (as of December 20, 2020):
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 service, in December 2015 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 weeks ago). Here is a picture of the Motley Fool email I got recommending “BUY TESLA”:
You can see in the image below of my ETrade portfolio that I bought 4 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, February 5, 2021 the stock was at $852.23 per share for a profit of $15,328 on my $1,715 investment in just 12 months. That is a 893% gain:
While I am at it, here's another screen shot from my ETrade account–one of the Motley Fool's February 2020 stock picks that is up 120% in just 11 months. On Feb 6, 2020 the Motley Fool recommended NVTA and I bought 100 shares at $22.54 a share. And as of February 5, 2021 it was at $49.70 for a gain of $2,715 or 120%.
These are just 2 examples of the Motley Fool's 2020 stocks that have done well. In fact, 8 of the Stock Advisor service stocks for 2020 have already more than doubled. While that has been great, keep reading to see how previous picks are even better.
Stock Advisor Results for the Last 5 Years
Quick Summary: As of February 28, 2021, even in spite of the COVID Crash, massive unemployment, a Presidential election and a few riots, the average return of all the stocks in my Motley Fool portfolio bought from January 2016 to December 2019 is +240% which means the Motley Fool's picks are beating the market on average by 177%.
Take a look at this summary of my portfolio (February 28, 2021) and you will see all you need to know (average return of each years' picks, comparison vs the overall stock market, stock picks that are profitable, stocks picks that are up 50%, 100%, 200%, 300%, Max winner and Worst loser. (Note that they do pick a few losers each year, but the winners far outweigh their losers.)
Your first thought after reading those percentage returns is probably “That's impossible!” 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 3,863%. 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 $1,287. More specifically, as of that date February, 2021…
- the 24 Motley Fool stock picks from 2016 are up an average of 371% compared to SP500 up 95%
- their 24 picks from 2017 are up an average of 193% compared to SP500 up 67%
- the 2018 picks are up 222% compared to SP500 up 45%
- the 2019 picks are up 131% compared to SP500 36%
- and quite impressively, their 24 current picks from 2020 are already up an average of 89% and the SP500 is up an average of only 21% over the year. This is in spite of the Motley Fool picking one stock (a Chinese coffee shop) that is down 85% because they falsified financial statements.
- Finally, of the 120 Motley Fool picks from January 2016 to December 2020:
- 105 or 88% are up
- 56 have at least doubled
- 32 have at least tripled
- and 21 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 12 months (that's 24 stock picks since they release two new stock picks every month) are up an average of 89% already, 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, they frequently run discounts of 10% to 50% off. 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. Click the link below to see their current offer:
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 February 28, 2021:
- Pinterest (PINS) — Oct 1, 2020 pick is up 88%
- Fiverr Intl (FVRR) — Sept 3, 2020 pick is up 177%
- Crowdstrike (CRWD) — June 4th pick is already up 152%
- Shopify (SHOP) – April 2, 2020 pick and it is already up 320%
- Zoom Video (ZM) – March 19, 2020 pick and it is already up 249%
- DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 35%
- Invitae (NVTA) Feb 6, 2020 pick is up 134%
- Tesla (TSLA) picked January 2, 2020 before the crash and it is up 848%
- HubSpot (HUBS) picked December 5, 2019 and it is up 227%
- Netflix (NFLX) picked November 21, 2019 and it is up 78%
- Trade Desk (TTD) picked November 11, 2019 and up 348%
- Zoom Video originally picked Oct 3 and it is up 463%
- SolarEdge (SEDG) picked September 19, 2019 and it is up 270%
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 and Save $100
Get The Motley Fool's Next 24 Stock Picks at the Best Possible Price. SAVE $100. Normally the Motley Fool service is $199 per year but they frequently run price discounts of 10% to 50% off.
I have bookmarked the 50% discount page that has their lowest price ever for NEW SUBSCRIBERS ONLY so you can try it for just $99/year 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.
Updated as of February 28, 2021 -- The Motley Fool Stock Advisor won our award for the Best Stock Newsletter of 2020, and that's now three years in a row. If you were a Motley Fool subscriber last year you have a 92% return and 22 of their 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 685% since they recommended it in January 2020. In addition, their 2019 stock picks were awesome too and they are now up 131% compared to SP500's 36%; and their 2018 picks are up 222% (SP's 45%). 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 so you can CRUSH THE MARKET like their last 5 years of picks have done!
In fact, over the last 5 years the average Fool stock pick has more than tripled, being up 201%! This time period covers the 2016 election, the Trump administration, the China trade negotiation, COVID, and now the Motley Fool is already continuing their excellent stock picks with one of their 2021 stock picks already up 14%. Don't miss out on the Motley Fool's next stock pick. Here is their schedule for the next few weeks:
- March 4, 2021 - Tom's New Stock Recommendation
- March 11, 2021 - Tom's List of 5 Best Stocks to Buy Now
- March 18, 2021 - David's New Stock Recommendation
- March 25, 2021 - David's List of 5 Best Stocks to Buy Now List
FYI--Their October, November, and December picks are already up 81%, 53% and 56%. Don't miss out on their next pick! And remember, if you are not impressed, you can always cancel within 30 days and get a full refund.
Stock Advisor New Subscriber Offer:
(there's no risk, they offer 30-day money back guarantee)
About This Motley Fool Review
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, February 28, 2021 (HINT: their picks from 2016, 2017, 2018, and 2019 have beat the SP500 by 192% in SPITE OF THE MARKETS PLUMMETING 30% IN MARCH AND APRIL.)
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.
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…
- 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.
- 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.
- 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.
- 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 Motley Fool Review. So I can share my results with the Motley Fool's stocks and encourage you to start building a profitable portfolio like I have.
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 90%.
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 and with a 30 day money back guarantee it is absolutely a no-brainer. Get the Fool's next two new stock picks, plus access to their recent picks, and try it out. Then cancel it if you are not satisfied and get your money back. You have nothing 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.
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.”
If you want more info, please keep reading. And don’t worry, in this article I’ll cover everything–including the good, the bad and the ugly about the Motley Fool.
You probably already know a little bit about the Motley Fool and their products.
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.”
They advertise heavily, often promoting their Stock Advisor's staggering 609% return since inception compared to the market's 120% return over the same time period.
For that reason many consider it the best stock newsletter. Those returns sound great, right?
Take a look at the chart above….it appears too good to be true.
And THAT is exactly why I wrote this Motley Fool article –to share the results of my experience with the Motley Fool service.
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.
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.
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…
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:
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 February 28, 2021 OKTA closed at $291 so that stock alone is up 897%! 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.
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 it 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. 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 beat the market.
I also think people may get the wrong impression if they stumble upon tweets like these:
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. 700,000 people can't be wrong!
But, for the benefit of people reading this Motley Fool Stock Advisor review, here are the FACTS:
- There's no question the Motley Fool is a legit company that is well known among investors. They say they have over 700,000 subscribers.
- I subscribed in 2015 and my results are listed above
- They even have their own mutual fund, which is the “Motley Fool Global Opportunities Fund Investor Shares (FOOLX)”.
- 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 outperformed the stock market by over 90%.
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 700,000 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 stock picks 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:
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. Either way you can cancel and take advantage of their 30 day money back guarantee and get a full refund.
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:
- Tim Sykes teaches Penny stocks
- Superman Trade alerts and premium research
- Guru – learn from proven profitable traders
- Analyze your trades
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.
Stock Advisor New Subscriber Offer:
(there's no risk, they offer 30-day money back guarantee)
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 current rate of $99 per year 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 at least 70% each of the last 5 years so I can definitely say it's been worth it.
The biggest negative experience is:
- With over 700,000 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 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 Breaker's picks are coming from just David Gardner and his team
- These 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.
Motley Fool Stock Advisor Review
- Performance against Benchmark
- Tools and Features
- Ease of Use
- Support and Customer Service
- Depth of Features
MY MOTLEY FOOL CONCLUSION — Given that their last 12 months (that's 24 stock picks since they release two new stock picks per month) are up an average of 115% already, 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.