Wouldn’t it be nice to have an amazing resource for stock research that…
- Helps you make better investment decisions; and
- Teaches you to be a better and investor all around.
If it sounds too good to be true…
…then you may have been living under a rock for a little while.
It is time to get out!
Technology and the internet have enabled retail investors to utilize digital resources to improve investment performance and get educated on the stock market.
However, there is also plenty of room for misinformation on the internet.
Accordingly, it’s very important to find reputable and accurate information sources, especially when it comes to managing your money.
Two very popular investment services are:
- Stock Advisor by The Motley Fool
- IBD Leaderboard by Investors Business Daily
Which one is better? This IBD vs Motley Fool will show what you need to know about the pros and cons of each.
Before we jump into discussing Stock Advisor in the IBD leaderboard…
…let’s discuss the different types of investing strategies and how each of these Services can benefit different investors.
Fundamental Vs. Technical Investing
Novice investors often think they need to be experts on every facet of the investing world.
However, this thinking can be very dangerous and counterproductive.
Education is very important in investing because the more you know, the more likely you are to spot inconsistencies or avoid a bad trade.
Regardless, you can take too much information from very different perspectives, leading to serious losses if you’re not careful.
For example, many long-term investors prefer fundamental analysis because the company’s performance and resources represented by the stock illuminate potential for profit or loss.
Short-term traders and mathematically minded investors sometimes prefer technical investing because it focuses on things like:
- Stock charts;
- Trading volume; and
- Moving averages.
These factors tend to ignore the fundamentals.
The fundamental investor will take a company like Apple or Twitter, and analyze everything from the top down.
Think of things like quarterly and annual earnings, industry benchmarks, executive leadership, and price/earnings (P/E) ratios.
These all factor in deciding whether you will buy stock or not.
A technical trader will look at the stock chart with the goal being to understand what other traders are doing.
These traders will also evaluate if the stock will be breaking through support or resistance, which could potentially reverse the direction of the stock movement.
Since these are both very different approaches with very different objectives…
…it’s title to determine what style of investing you want to do as well as what style of investing you are getting your news from.`
IBD leaderboard is a monthly subscription service primarily for technical traders.
For $69 a month, you get…
- Access to stock, options, and ETF charts;
- A free IOS app; and
- Coaching from IBD.
Technical traders will enjoy annotated charts provided by IBD.
These charts show show entry and exit points, and recommendations on “how to train” a particular stock.
Subscribers also get daily emails with market news and potential advance that they may want to keep their eye on relating to their portfolio.
IBD employs what they call CANSLIM strategy.
This strategy has elements of fundamental trading, which aims to help you be a more efficient technical Trader.
CANSLIM is an acronym that stands for the following:
Current quarterly earnings
Quarterly earnings are very important litmus tests for publicly traded companies because they are a small snapshot of their financial performance over the past quarter.
Sometimes investors get too caught up in quarterly earnings and ignore everything else, but the other factors in this list, they provide additional color to your investment decision.
Annual earnings growth
Quarterly earnings are a small snapshot of the company’s annual earnings growth performance.
It is a great way to connect the company’s annual performance with its industry benchmark to see if it’s meeting or exceeding expectations.
New products or services
Is this company innovative and releasing new products and services to serve their customers?
Or are they resting on their laurels?
Supply and demand
Supply-demand for a stock may sound weird, but you need to look at the trading volume and price action to see how other traders are looking at it.
Leader or laggard
Is this particular stock leading its industry, or is it falling behind?
When institutional investors like Berkshire Hathaway or insurance companies take a stake in a company, it can be a good indicator of what the industry at large thinks about that specific stock.
Simply put, this is asking where is the market going for this company?
When you are trading using technical analysis, you may want to get some more information on the trading stocks.
This framework provides an accessible and very manageable way to do some quick research.
Motley Fool Stock Advisor
The Motley Fool was founded in the late 1990s by brothers Tom and David Gardner.
At the time, there were not many resources available to retail investors.
In fact, most of the financial data in stock market analytics was only available to Wall Street professionals.
Motley Fool decided to start their Stock Advisor newsletter to provide information and reliable stock picks to everybody who would subscribe affordably.
Stock Advisor is aimed at long-term investors who prefer using “buy and hold” strategy.
This strategy is apparent with Stock Advisors monthly offering.
So, what do you get with Stock Advisor?
All subscribers receive:
- Two stock picks per month;
- Access to the starter stock list; and
- Other recommendations from the Motley Fool analysts.
Tom and David each have their team of analysts, and they each employed different stock valuation methods.
The teams spend each month sifting through their list of top potential stocks.
From there, each team settles on what they think is the best stock to recommend for their subscribers.
Since they perform their analysis independently, they are able to offer an immense range of perspectives on all the stocks.
Additionally, the teams provide the data they use to make the decision.
Sometimes, the teams settle on the same stock without telling each other.
This occurrence has only happened a handful of times.
When it happens, it is called an “ultimate buy“ recommendation.
The starter stock list is a group of stocks that:
- Are in different industries;
- Have different market capitalization; and
- Have a strong track record.
If you’re looking for new stocks, but don’t know how to start searching, this starter stock list is great for anyone.
The list is diversified and it has representation in a variety of different sectors.
The Motley Fool also provides another list of potential stock recommendations.
These recommendations have promising potential and include the analysis that was used to pick them.
What’s the Best Choice?
At the end of the day, our conclusion of Investor Business Daily vs Motley Fool is most investors will probably be better off with Motley Fool stock advisor.
Because Stock Advisor is the most accessible option regardless of your financial background.
IBD leaderboard has excellent resources for experienced technical traders.
However, investors may find the information overwhelming when trying to build a simple long-term investment strategy.
If you are new to investing or are a seasoned best are looking for more resources and potential investments…
…the Motley Fool meets both of those needs right down the middle.
The starter stock list is a phenomenal resource introduction to portfolio theory and diversification.
Additionally, the monthly stock picks provide exposure to a new industry.
Another option we conclude from this Motley Fool Stock Adviso vs IBD review is to use both of them concurrently because you will have two very different sets of tools for stock analysis.
IBD leaderboard also offers a 30-day trial.
Therefore, you could start with the free trial.
If the service works for you, then subscribe.
If not, you could give Motley Fool Stock Advisor a shot (it comes with a money-back guarantee!).
*** UPDATE -- Friday, October 7, 2022 -- MOTLEY FOOL STOCK ADVISOR AVERAGE RETURN OF THEIR LAST 120 STOCK PICKS IS +207% ****
Also, the Motley Fool just launched a special promotion with their biggest discount ever: 60% off (see the link below).
The year 2021 was tough in so many obvious ways, but if you were a Motley Fool subscriber you are smiling given that the average return of their last 120 picks that have at least 12 months history is +207% thru December 31, 2021. That is +115% better than the SP500!
Better yet, we have been tracking ALL of the Motley Fool stock picks since January 2016. That's over 6 years and over 144 stock picks. As of Friday, December 31, 2021, their 2020 picks are up 73%, their 2019 picks are up 85%; their 2018 picks are up 217%, their 2017 picks are up 259%; and their 2016 picks are up 402% for an average return of 207% over the last 5 years. 78% of their picks were profitable and 53 have more than doubled! The Fool has done so well because they quickly identify stocks year that will perform well in the current environment. THAT is how the Fool consistently does so well--they adapt and constantly pick stocks before everyone else realizes the opportunities.
- Tesla (TSLA) picked January 2, 2020 and it is up 1,128%
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Here is their release schedule of their upcoming stock picks:
- October 6, 2022 - David's New Stock Recommendation
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