The only reason that you start buying individual stocks is if you think that you are going to beat the market as a whole.
The S&P 500 generally returns about 10% year after year, and so you’ll have to do pretty well on your individual picks portfolio to beat that!
But the Motley Fool has been able to figure out some ways to consistently beat the market.
Since the beginning of both Rule Breakers and Stock Advisor, the average pick has beaten the market by almost double or triple the total of the market.
That means that whatever you get from this article–you should walk away knowing that either Rule Breakers or Stock Advisor is a good strategy for beating the market with individual picks.
But there are a number of differences between Stock Advisor and Rule Breakers.
So let’s look into the different methods used and what might be the best one for you!
There are two brains behind the core of Stock Advisor.
The co-founders of Motley Fool, Tom and David Gardner, work with a great team of analysts to pick a variety of stocks for the service.
Each of the two teams recommend a new stock for the subscribers to buy every single month.
Also, once per month, each team talks about five stocks that they think should be purchased with new money that day.
If you’re just starting out, Stock Advisor is great because it has a continually updating and revolving list of starter stocks that the team things should be in every portfolio.
Even if you’re coming to stock advisor with a lot of money and no investments, then you can get a running start through the Stock Advisor service.
Stock Advisor has been around for about a decade, and over the last decade they’ve picked a ton of winners.
There have been a ton of different astounding stock performances that have come out of the system.
The stocks that Stock Advisor targets are great for a long term performance.
They aren’t looking for something that burns bright and then crashes, they are looking for stocks that are going to perform well over the long run.
Each of the teams that contributes to Stock Advisor–team Tom and team David–have their own methods that they use to get you the best long term stocks.
Team Tom focuses on a bunch of stocks that are working in industries that are less popular than they used to be.
Because the markets are not known to be popping and strong, this helps you get great stocks at a bit of a discount.
Tom focuses on stocks that have great business models and excellent financials.
With a great management team and great ownership, these stocks can perform really well in the long run.
Team David is a bit less rigorous with the process.
David looks for companies that are situated in different kinds of trends, but that also have some kind of X-factor that can help them succeed over time.
These are the intangible companies.
These are the companies that have something special about them.
While you can tell that they have a strong business model and a great brand, there’s always something a little bit extra about the companies.
Team David doesn’t just work in the Stock Advisor segment.
David and a different team of analysts also work in the Rule Breakers, producing a different type of analysis.
This newsletter, Rule Breakers, targets a kind of high-growth opportunities that can often be overlooked by the rest of the market.
The Rule Breakers team is looking for big swings at the market.
They are looking for a variety of innovative leaders that are taking over new industries.
If you can find the right person at the helm of a company that is well-positioned in a new industry, then you can get a huge return on the stock.
If you can find a stock that has a great advantage in a given business, then you can find a bunch of money moving forward.
Businesses that have a bunch of competitive advantages might be great for the long-run.
Rule Breakers is also looking for a ton of counterintuitive companies that keep on winning.
If companies beat the conventional wisdom of the market at one point, and have a strong system, they will probably continue to do so.
The Rule Breakers newsletter is also looking for counterintuitive, X-factor companies, just like Team David in the Stock Advisor segment.
These are companies that are positioned really well to beat the market and win by a lot.
Rule Breakers also produces a couple of specific new stock recommendations each month and curates a Best Buys list that helps you consider additional recommendations.
Rule Breakers also has a list of Starter Stocks that can help new investors begin to build a portfolio.
Head to Head Comparison
Stock Advisor started in 2002 while Rule Breakers started in 2004.
Both of the different portfolios have existed before the crash of 2008, and have survived through that same crash.
Stock Advisor has had a couple of years to increase the total performance numbers, but has also had more time to fall in the charts.
Ultimately, the two year difference between the two newsletters should not cause you to pause too much on either one.
Both of them have had a solid 10+ years to prove themselves.
Both of them have had strong performances, and continue to do so year after year.
*** SPECIAL ALERT -- June 27, 2020 -- Motley Fool Stock Picks On FIRE! ****
Three of the Motley Fool stocks picks from this year have already DOUBLED! That is 3 of their 12 stock picks from January to June of 2020 have already doubled. Even with this COVID crisis, the average return of their 2020 picks is 34% compared to the SP500's 1.58% return. The performance of their 2020 picks is no fluke either. Their 2019 picks are up an average of 51% compared to the SP's 6%; and their 2018 picks are up an average of 131% compared to the SP 13%. Here are some of their most recent picks and their performance:
- Shopify (SHOP) – April 2, 2020 pick and it is already up 163%
- Zoom Video (ZM) – March 19, 2020 pick and it is already up 107%
- DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 27%
- Tesla (TSLA) picked January 2, 2020 before the crash and it is up 123% compared to the SP500 -7% so it is ahead of the market by 130%
- HubSpot (HUBS) picked December 5, 2019 and it is up 46%
- Netflix (NFLX) picked November 21, 2019 and it is up 42%
- Trade Desk (TTD) picked November 11, 2019 and up 111%
- Zoom Video originally picked Oct 3 and it is up 234%
- SolarEdge (SEDG) picked September 19, 2019 and it is up 45%
The average stock they've recommended is up a life-changing 446% - more than 4X the return of the S&P 500 ! Now, no one can guarantee that every pick in Stock Advisor will have the same mind-blowing returns as Netflix and Disney. But you sure don't want to risk missing out.
Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link.
If you order today, you will get these upcoming stock recommendations:
- July 2 - Tom's New Recommendation
- July 9 - Tom's New Best Buys Now
- July 16 - David's New Recommendation
- July 23 - David New Best Buys Now
Rule Breakers focuses on growth stocks and they are looking for things to crush your portfolio out of the park.
If you’re looking for a long and steady stock, the Rule Breakers newsletter might not be the great thing for you.
But then again, if the homerun goes out of the park, then it might also be a great thing for the long run as well!
On the other hand, the Stock Advisor service recommends stocks that have a longer run and have a little bit less risk.
If you’re building a portfolio and you don’t want to take on a bunch of different risks, then Stock Advisor might be the perfect pick for you!
This means that one of the biggest decisions that you are going to have is around risk aversion.
If you are really risk averse and want to make sure that whether or not you make money, you aren’t losing money, then Stock Advisor might be perfect.
If you don’t mind taking on a bit more risk and you want to have a bigger search for reward, then Rule Breakers might be the perfect service for you to go with.
The Personal Touch
Both services use Tom and David and a team of analysts, but then again they also are a little bit different.
Tom and David have a bit more of a personal touch around the picks that are in Stock Advisor, while the Rule Breakers picks seem to come a bit more from the team of analysts.
If you care a bit more about method and data, then you might be totally okay with the picks that are done in Rule Breakers.
But if you really are interested in the ability of a couple of really smart investors to pick you some great stocks, then Rule Breakers might be the perfect service for you.
Stock Advisor is also the bread and butter of the Motley Fool offering of products.
David and Tom both have their names attached to it, and both guys really want to perform well.
David and Tom are professionals who obviously care about the stocks that they back with their own well-respected names.
So if you want a more personal touch and a well-rounded portfolio, Stock Advisor may be perfect.
Rule Breakers pricing can fluctuate based on the deal that they are currently running.
Sometimes, Rule Breakers is offered for about $299 a year, while sometimes you can get it for only $99 a year.
Sometimes it costs only $19 a month as well.
The subscription is also always backed by a 30-day money-back guarantee, which is really nice.
It is a no questions asked offer, which means that you are going to be able to check out the service and try it out.
If it ends up not being right for your investing strategies, you can cancel it without losing your money.
Obviously, if you plan on long term investing, then you can save money by getting the yearlong subscription at the same time.
Stock Advisors can be found for a standard $199 a year, and it is the flagship service of the Motley Fool.
It has returned ridiculous returns since starting almost 20 years ago, and shows no signs of slowing down.
It’s a great pick, and sometimes you can get it for only $99 a year at the introductory rate.
Just like the Rule Breakers service, you get a chance for a 30-day money-back guarantee.
That lets you try out the different kinds of things that the Stock Advisor service is going to offer without taking on extra financial risk.
Methods of Investing
Hidden gems is probably the best way of describing Rule Breakers.
David and the team are the focus of Rule Breakers, and they focus on finding all kinds of picks that help you find great stocks that aren’t that risky.
Identifying companies that have a good chance of turning a really good rate, then buying them while low, allows people to build a really good portfolio.
But instead of just googling hot companies and finding great growth rates that are untethered to great companies, the Rule Breakers team focuses on finding these things located within companies that are really strong.
If you can find a company that has a great cash flow and a great business model, and it has really strong growth, it can be a great company to own moving forward.
The Stock Advisor program is completely different than the Rule Breakers category in terms of investments and strategies.
The Stock Advisor program is the flagship Motley Fool recommendation service, which allows it to be the most generic.
They also reserve some of the best long-term bets for this recommendation service.
You get great investment advice, but it is also safe and solid.
History of Returns
The big difference between Stock Advisor and Rule Breakers is going to be performance.
While Stock Adviser has picked up 379% over time, Rule Breakers has picked up 89% over time.
But there are a few things behind those numbers that you need to understand.
First, the Stock Advisor service has had a couple extra years to pick up on those numbers.
Second of all, these are the aggregates of all of the individual picks.
It doesn’t mean that every stock in the Stock Advisor service has performed better than every stock in the Rule Breakers service.
In fact, the opposite is true. There have been many stocks in the Rule Breakers service that have actually done really, really well.
But there are also plenty of stocks that have done really, really poorly.
As you might expect, the Rule Breakers has produced some big hits and some big duds.
So Stock Advisor has put together a much better long-term game over all of the different Rule Breaker stocks.
But if you love playing the odds and seeing how individual stocks perform, then Rule Breaker stocks give you access to a ton of different individual picks that can go the distance.
The Services, In-Depth
We've talked quite a bit about the different kinds of philosophies behind the Rule Breakers and Stock Advisor services.
But what do the individual services actually get?
The Rule Breakers members get a ton of different education articles and trading tools.
The big hits of the service are the awesome stock picks that you get every single month.
If you’re getting ready to trade or simply want something new, it’s a great service to have in your back pocket.
If you’re a member of Rule Breakers, then you’ll also get a couple of new stock picks every single month.
Each of these picks also comes with a ton of research.
You don’t simply get a paragraph of buzzwords!
You get a ton of valuable information that you can use to make the correct picks for your individual portfolio.
The Motley Fool actually picked up an audience in the first place by providing great, in-depth research to a ton of different people in the industry.
Their research is still great, and it comes in a couple of different forms.
You get a great quick summary that takes a minute to read.
If you still have more questions after that, you can dive into the full research report.
Stock Advisors may also be something to check out.
The Stock Advisors service also offers you a couple of different stock picks each month, and in-depth research for each of the stocks that you are being offered. You get the same kind of different research metrics but for a different set of stocks.
Why Not Both?
It’s important to realize that these two different advice columns are not offering contradictory opinions on the stock market!
All of the advice and research is generated by Tom and David, along with the whole Motley Fool team.
They can both offer you a variety of different perspectives on what is going on in the stock market.
If you sign up for both, Rule Breakers will give you some more volatile, high-risk and high-reward stocks that can be great for going after the market.
Advisors will give you a great way of balancing your whole portfolio without leaning too far into different kinds of stocks.
If I’m Picking Only One?
If you’re picking only one, then you are going to have a tough decision to make.
The rationale behind the two different services are completely different.
Rule Breakers is for the risk takers who want to get in-depth scouting on stocks that could be huge.
Stock Advisor allows people to dig into a great selection of stocks all over the place.
It has a history of producing big returns as a whole, and is the much better choice if you are going to simply follow the picks without thinking too much about the research.
But if you like rolling the dice on some stocks–then having Rule Breakers makes a lot more sense.
WALL STREET SURVIVOR'S BEST OF THE BEST LIST
*** May 28th, 2020 ALERT—Motley Fool Picks Still Doing Well!****The Motley Fool Stock Advisor’s stocks picks, even with this COVID crisis, have been performing very well as of late. Here are some of their most recent picks and their performance:
- Shopify (SHOP) – April 2, 2020 pick and it is already up 70.5%
- Zoom Video (ZM) – March 19, 2020 pick and it is already up 21.2%
- DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 7%
- Tesla (TSLA) picked January 2, 2020 before the crash and it is up 75% compared to the SP500 -11% so it is ahead of the market by 86%
- HubSpot (HUBS) picked December 5, 2019 and it is down 5%
- Netflix (NFLX) picked November 21, 2019 and it is up 36%
- Trade Desk (TTD) picked November 11, 2019 and up 19%
- SolarEdge (SEDG) picked September 19, 2019 and it is up 10%
- Zoom was also picked October 3, 2019 and it is up 95% since then.
Both Stock Advisor and Rule Breakers totally understand that if you are going to get a different kind of result than all of the other people, then you are going to have to do something completely different than all of the other people.
Both of the newsletters are great choices to do just that.
Rule Breakers is really great at giving you growth stocks that help you build a strong portfolio over time.
Stock Advisor offers a bit more perspective, if you are looking for some different angles to approach the market with.
Both of the services can really help you build a portfolio that is much better than the portfolios of your friends!