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?
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, 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 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!).
*** SPECIAL ALERT -- Friday, December 4, 2020 -- TWO of this Year's Motley Fool Stock Picks Have Already DOUBLED and ONE Has Already TRIPLED in just 7 Months! ****
We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 4+ years, 55 months and 110 stock picks. As of Friday, July 24th, two of their twelve stocks picks from 2020 have already doubled (SHOP and ZM) and another one has tripled (TSLA)--all in just the first 7 months of 2020. In addition, 6 of their 2019, 8 of their 2018, 9 of their 2016 and 11 of their 2016 picks have also doubled. Best of all, over these 55 months, the average stock pick is up 128%. That beats the SP500 by an average of 93%. And that's even accounting for all of this COVID mess that has wreaked havoc on most stocks. BUT, the Fool has done so well because they have quickly identified stocks this year that will perform well in the post-COVID world. THAT is how the Fool consistently does so well--they adapt and constantly pick stocks before everyone else realizes the opportunities.
- Pinterest (PINS) — Oct 1, 2020 pick is up 42%
- Fiverr Intl (FVRR) — Sept 3, 2020 pick is up 50%
- Crowdstrike (CRWD) — June 4th pick is already up 24%
- ServiceNow (NOW) — May 7 pick is already up 28%
- Shopify (SHOP) – April 2, 2020 pick and it is already up 185%
- Zoom Video (ZM) – March 19, 2020 pick and it is already up 141%
- DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 39%
- Tesla (TSLA) picked January 2, 2020 before the crash and it is up 414%
- HubSpot (HUBS) picked December 5, 2019 and it is up 96%
- Netflix (NFLX) picked November 21, 2019 and it is up 68%
- Trade Desk (TTD) picked November 11, 2019 and up 152%
- Zoom Video originally picked Oct 3 and it is up 289%
- SolarEdge (SEDG) picked September 19, 2019 and it is up 147%
- Wix (WIX) picked May 2019 and it is up 113%
** If you had been a subscriber for the 12 months, then you would have these profits as of September 5, 2020
Now, no one can guarantee that their next picks will be as strong, but our 4.5 years of experience has been super profitable. They also claim that since inception, their average pick is up 504% and now we believe them. Many analysts are saying that we have passed the bottom of this COVID crisis and "certain" stocks will recover quickly and be the new leaders. So make sure you have the right stocks in your portfolio.
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
FYI -- ALERT as of November 29, 2020 -- Did you see the news? TESLA hit a new high this week and is now at $585. TESLA was the Motley Fool's January 2, 2020 pick back when it was at $86 so that stock is now up 580% in less than a year. Also TTD is now up 353% since they recommended it in November 2019 so it is up 353% in exactly 12 months. Also, 19 out of 22 of this year's picks are up with an average return of 77% compared to the market's 17% return. In addition to TSLA's 580% return this year, 4 other picks have more than doubled (their February pick NVTA is up 125%, March pick ZM is up 281%, April picks of SHOP and ZM again are up 198% and 213%; May pick NOW is up 38%; their Sept 3 pick FVRR is already up 76% and October 1, 2020 pick of PINS is already up 56%.
Over the last 5 years their average stock pick hass almost tripled (up 198%)! This time period covers the 2016 election, the Trump administration, COVID, and now the Motley Fool is getting ready to release their stock picks that they expect to do well during the Biden administration. Don't miss out on the Motley Fool's next stock pick. Here is the schedule for their next TRADE ALERTS:
- December 3, 2020 - Tom's New Stock Recommendation
- December 10, 2020 - Tom's 5 New Best Stocks to Buy Now List
- December 10, 2020 - David's New 5 Best Stocks to Buys Now List
- December 17, 2020 - David's New Stock Recommendation