*** UPDATED January 24, 2021: All percentage returns calculated based on closing prices of Friday, January 22, 2021. ***
THIS WEEK'S MOTLEY FOOL STOCK ADVISOR RECAP–2020 YEAR END SUMMARY!:
- The year 2020 is finally over. It was tough in so many obvious ways, but if you were a Motley Fool subscriber you are smiling given that 21 of their 24 stock picks for the year are up; 8 of them have doubled; and the average return of all 24 picks is +99% compared to the SP500's 22%!
- If you have been a subscriber for 2 years, then you know the Fool's 2019 stock picks are now up 132% compared to the market's 37%, 10 of those picks have at least doubled, and 5 have even quadrupled.
- And, not to rub it in, but 14 of their 24 picks from 2018 have now at least doubled; 6 have even quadrupled, and the average return of those picks is now up 223%–that's more than tripled in 3 years.
- The stock market had a record setting year and the Motley Fool stock picks continue to drastically outperform the market:
- The Motley Fool January 2, 2020 stock pick of TESLA hit an all-time high last week and now that stock pick is up 884% in 12 months! ( I bought $1,700 of that stock on the day they recommended it and today I have a $14,807 profit! See the screenshot of my account below.
- Their December 2, 2020 pick LMND is already up 91% in just 5 weeks.
- Their November, 2020 picks are up 538and 14%
- Their October picks are up 64 and 18%
- Their September 3, 2020 pick of FVRR is already up 109% in 4 months.
- Most impressively 21 of their 24 stock picks for the year 2020 are up; the average return is 99%; and 1 is up more than 8x (TSLA), 3 have more tripled (ZM, SHOP, ZM (re-picked)) and 4 others have doubled.
- Here's a neat fact: Had you subscribed at any time in 2019 and bought equal dollar amounts of each of their next 12 months of stock picks you would have more than doubled your money.
- The Motley Fool Stock Advisor has recommended one stock FOUR times in the last 12 months. They were absolutely right: ZOOM VIDEO (TICKER:ZM) is up huge in the last few months due to a strong earnings release. They recommended ZOOM July 3, 2019 when it was at $90; then on Oct 3, 2019 the recommended it again when it was at $76; 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 $384. THAT is exactly how the Stock Advisor gets its incredible returns year after year.
- Over the last 5 years (that's 120 stock picks) the Motley Fool Stock Advisor picks from January 2016 to December 2020:
- 87% of their 120 stock picks were profitable, 71 out of 120 are up at least 50%
- almost half of their picks (58) have at least doubled
- 32 have at least tripled, and 20 have at least quadrupled in price
- those 120 stock picks have an average return of 199% compared to the SP500's 54%.
MOTLEY FOOL TIP: As you can see, they have done a fantastic job picking stocks over the last 5 years. That period covered the 2016 election, the Trump presidency, COVID and the current election. Now they are getting ready to release their stock picks for 2021 and the Biden presidency. Their next stock recommendation is scheduled to be released Thursday, January 28, 2021. With over 700,000 subscribers their stock picks tend to pop 2%-8% within 72 hours of their announcement. So, to maximize you returns, you need to buy the stock as soon as the recommendation comes out. You can get their next stock recommendation by clicking here.
With this Motley Fool Stock Advisor Review, I’m going to tell you exactly:
- What you get when you subscribe to this stock picking service
- How profitable their stock picks have been over the last 12 months, the last 5 years, and since inception of their service
- What percentage of their picks have been profitable and are beating the market
- How to order the Motley Fool service for the cheapest rate available
I will also reveal two important things I have learned to maximize my profits from my Stock Advisor subscription.
Table of Contents
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 stock picks
- 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 their stock picks.
So for almost 5 years now I have bought $1,000-$2,000 of EVERY stock the Motley Fool has recommended.
Here is a brief summary of how those stocks have performed for me.
Keep reading and I will explain this chart in more detail later on.
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 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, December 18, 2020 the stock was at $695 per share for a profit of $12,184 on my $1,715 investment in just 11 months. That is a 710% gain in just 11 months:
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 136% in just 7 months. On Feb 6, 2020 they recommended NVTA and I bought 100 shares at $22.54 a share. And as of November 27, 2020 it was around $53 for a gain of $3,076 or 136% in 8 months.
These are just 2 examples of the Motley Fool's 2020 stock picks that have done well. In fact, 5 of the Stock Advisor service stock picks for this year have already more than doubled. While that has been great, keep reading to see how previous years picks are even better.
Here is another FACT you should know about the Fool's Stock Advisor service performance regarding their 2019 stock recommendations…
Motley Fool Fact Checker
Based on My Experience of Being a Paid Subscriber since 2016.
In this 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. For example, are the returns that they advertise like the one below 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 these…
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 have the Motley Fool stock recommendations done the last few years?
Those are the FACTS that I set out at the end of 2015 to determine for myself.
Please note that not only have I been a subscriber to the Motley Fool for over 5 years, but I have also purchased $1,000 to $2,000 of EVERY one of their two new stock picks each month over these last 5 years in my ETrade account.
Here is my portfolio's overall performance broken down by year of the Motley Fool's stock picks:
Since I have bought $1,000-$2,000 of EVERY stock the Motley Fool has recommended over the last 5 years, here are some MOTLEY FOOL FACTS you should know based on my last 5 years of data:
- 87% of their stock picks were profitable
- 65% are beating the stock market (SP500) over the same time period
- From 2016 to 2019:
- 50 of their 96 stock picks have at least doubled
- 29 of those have at least tripled
- and 19 of those have at least quadrupled
- Having that many stocks that double, triple or quadruple or more allows their average return of those 96 stock picks to be 224% compared to the SP500 average return over that same time period of 62%. This means they are absolutely beating the overall stock market by 163%
- 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. Here is the link to their 50% off promotion for new subscribers.
Later on in this Motley Fool review, 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.
Here is another FACT that I like…
Tom and David Gardner that started the Motley Fool years ago still run the company and make the stock recommendations. This is an extremely important fact because you might find another newsletter that has also done well, but you never know who really is picking their stocks. With the Motley Fool, 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 Results over the Last 5 Years
Quick Summary: As of January 24, 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 +224% which means the Motley Fool's picks are beating the market on average by 163%.
Take a look at this summary of my portfolio (January 24, 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 them for the last 5 years. Take a look at the MAX RETURN for 2016 which is 3,603%. 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 $1,170. More specifically, as of that date January 24, 2021…
- the 24 Motley Fool stock picks from 2016 are up an average of 348% compared to SP500 up 96%
- their 24 picks from 2017 are up an average of 195% compared to SP500 up 68%
- the 2018 picks are up 223% compared to SP500 up 46%
- the 2019 picks are up 132% compared to SP500 37%
- and quite impressively, their 24 current picks from 2020 are already up an average of 99% and the SP500 is up an average of only 22% over the year. This is in spite of the Motley8 Fool picking one stock (a Chinese coffee shop) that is down 76% because they falsified financial statements.
- Finally, of the 96 Motley Fool picks from January 2016 to December 2019:
- 83 or 86% are up
- 60 are up at least 50%
- 50 have at least doubled
- 29 have at least tripled
- and 19 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 Motley Fool's performance over the least 5 years, 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 per month) are up an average of 111% 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 December 31, 2020:
- Pinterest (PINS) — Oct 1, 2020 pick is up 58%
- Fiverr Intl (FVRR) — Sept 3, 2020 pick is up 79%
- Crowdstrike (CRWD) — June 4th pick is already up 112%
- ServiceNow (NOW) — May 7 pick is already up 48%
- Shopify (SHOP) – April 2, 2020 pick and it is already up 238%
- Zoom Video (ZM) – March 19, 2020 pick and it is already up 228%
- DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 28%
- Invitae (NVTA) Feb 6, 2020 pick is up 114%
- Tesla (TSLA) picked January 2, 2020 before the crash and it is up 707%
- HubSpot (HUBS) picked December 5, 2019 and it is up 163%
- Netflix (NFLX) picked November 21, 2019 and it is up 71%
- Trade Desk (TTD) picked November 11, 2019 and up 393%
- Zoom Video originally picked Oct 3 and it is up 428%
- SolarEdge (SEDG) picked September 19, 2019 and it is up 251%
- Wix (WIX) picked May 2019 and it is up 99%
Here's the most amazing statistic about the Motley Fool stocks over the last few years. 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.
Another impressive fact to note is the Motley Fool was quick to pick the stocks that are benefitting from the COVID crisis. THAT is how the Motley Fool consistently does so well–they adapt and constantly pick stocks before everyone else realizes the opportunities. Then, once the rest of the world figures it out, these stocks explode 2x, 3x, 4x or more.
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.
FYI -- Updated as of January 24, 2021 -- Thank goodness 2020 is over and we look forward to life returning back to normal in 2021. But the one GREAT thing about 2020 if you were a Motley Fool subscriber was 21 of their 24 2020 stock picks are up; and EIGHT (TSLA, NVTA, ZM, SHOP, ZM (re-recommended), CRWD, CRWD (re-recommended), and FVRR) have now at least DOUBLED! The average return of their 2020 stock picks is now +99% compared to the SP500's +22%. Their top performer was TESLA which is now up 884% since they recommended it in January 2020. In addition, their 2019 stock picks were awesome too and they are now up 132% compared to SP's 37%; and their 2018 picks are up 223% (SP's 46%). 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 fact, over the last 5 years the average Fool stock pick has more than tripled (up 224%)! This time period covers the 2016 election, the Trump administration, the China trade negotiation, COVID, and now the Motley Fool is getting ready to release their stock picks for 2021 and the Biden administration. Don't miss out on the Motley Fool's next stock pick. Here is the schedule for their next TRADE ALERTS:
- January 28, 2021 - David's New 5 Best Stocks to Buys Now List
- February 4, 2021 - Tom's New Stock Recommendation
- February 11, 2021 - Tom's 5 New Best Stocks to Buy Now List
- February 18, 2021 - David's New Stock Recommendation
About This Review
In the rest of this Fool review, I will also show you:
- Exactly what you get when you subscribe
- 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, December 18, 2020 (HINT: their picks from the last 4 years (2016, 2017, 2018, 2019) have beat the SP500 by 162% 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 over the years. Two little facts that you must understand about their services in order to maximize your profits.
Why Did I Write this Review?
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 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 ten years, I have subscribed to dozens of stock newsletters and the Motley Fool 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 to buy, that too is now easy.
Eventually, I did find a stock service that was able to consistently outperform the stock market. And by ‘outperform'….. I am talking about consistently beating the stock market by over 60% over the last 5 years!
…And that's why I wrote this Motley Fool review. So I can share my results with the Motley Fool's stock picks and help you 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 $10,000 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 stock picks the last 5 years 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 last few years of 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 my this review. And don’t worry, in this review I’ll cover everything–including the good, the bad and the ugly.
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 531% return since inception compared to the market's 111% 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 review–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 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 Stocks to Buy” 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 December 18, 2020 OKTA closed at $271 so that stock alone is up 831%! 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 Stocks to Buy Now” are usually re-recommendations of previously selected stocks. Any of their stock picks 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 very few things, but the one thing they ALL AGREE ON is the sooner you start investing in the stock market they better off you will be in a few years.
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.
You'll also get access to their “Favorites” page, which allows you to customize a list of stocks that you are interested in following:
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… I think it's because people still have a negative view on the financial industry in general. But it's still an easy answer: Tom and David Garner's Motley Fool & their Stock Advisor service is DEFINITELY NOT a scam.
Of course it's not perfect and every stock recommendation is not a winner. But, they definitely are a legit company and for the last 5 years their stock recommendations have definitely beat the overall stock 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 stock recommendations have beat the market the last 5 years. My results shown below 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 service. 700,000 people can't be wrong!
Not to mention I've been a customer for over 5 years and I am very happy I subscribed because of the performance of my stock portfolio. I just wish I had subscribed earlier.
But, for the benefit of people reading this Fool 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 in a previous section
- They even have their own mutual fund, which is the “Motley Fool Global Opportunities Fund Investor Shares (FOOLX)”. I don't have any comment on that fund as I haven't reviewed it yet.
- Also, the Fool brothers, Tom and David Gardner, don't hide from their customers. They are very active in the investment community. 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!)
I've subscribed the Fool’s Stock Advisor service for more than 5 years now and I can again reassure you that this is not a scam.
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 popular 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, each of their last 4 years their stock picks have outperformed the stock market by over 90%.
I subscribed in 2016 and my results speak for themselves.
Motley Fool 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.
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 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. You will also get their “BEST 10 STOCKS TO BUY TODAY” list when you subscribe…
Register Now to get:
- Two brand new stock recommendations per month delivered in real-time to your email.
- Access to all of the Motley Fool's stock recommendation in 2020 (5 have already doubled) , 2019, 2018, and 2017.
- 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.
- Access to The Motley Fool's promotional page to get their deep discount pricing.
Remember, they have a 30 day money back guarantee.
Does the Motley Fool 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 review or 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.
When investing for the long-term, it is best to analyze a stock’s fundamental, which can define the strengths, weaknesses and overall value of a company.
Is it Good for Day Traders?
Nope. 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.
As an individual investor, I wouldn’t be comfortable having a large position on one stock. The Motley Fool’s Stock Advisor (SA) is a service that is not suited for day trading.
It is more focused on buy & hold portfolios that is seeking capital growth. This involves a lot less stress and growth for the long-term.
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 Stock Advisor Review so other's can see how great the Fool 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 90% each of the last 4 years so I can definitely say it's been worth it.
The biggest negative I 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.
P.S. If you use this link, it will take you to the Motley Fool's new subscriber discount page where you will get a 50% discount. Click Here
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 are excellent stock picking services, consistently beat the market, release 2 stock picks per month, are best for long term investors, and they both can be purchased at Fool.com. The differences are:
- Rule Breaker's picks are coming from just David Gardner and his team
- You still get usually 2 new stock picks per month, but these picks focus on high-growth stocks that they feel are poised to be market leaders
- The results of Rule Breakers stock picks are MUCH MORE VOLATILE than the Stock Advisor's picks–they pick more losers but their winners are HUGE
- Because of the great success of a few of the Rule Breakers picks each year, if you bought all 24 of their picks each year your portfolio would be about 8% higher with Rule Breakers than with Stock Advisor's.
Conclusion: The Motley Fool Rule Breakers picks have higher returns, 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.