It's time to check out the Motley Fool vs. Stansberry Research.
But first, let's have a talk.
When you are trying to get ahead on your stock market research, there are SO many options to choose from online that it can become overwhelming.
Whether you are…
- Looking for new stocks to research;
- Learning about different industries; or
- Performing due diligence on a potential trade
…you want to make sure the information you are reading is insightful and helpful.
Thankfully, the internet and online investment publications have provided more access to valuable investment research than any other time in history.
However, this unfettered access to information is a double-edged sword.
The surplus of investment research sources online can lead to information with dangerous perspectives looking to pray on novice investors.
Fortunately, there are some excellent options available proven track records and industry-leading reports.
Two of these prominent investment research companies are:
- The Motley Fool; and
- Stansberry Research.
Both the Motley Fool and Stansberry Research have cut their teeth and built their reputation over decades in the investment research marketplace.
The Motley Fool is led by two brothers who founded the company as nothing more than a small stock recommendation letter.
This letter has grown into a behemoth organization that provides investment recommendations, personal finance expertise, and much more.
Similarly, Stansberry has built its reputation on providing insightful stock recommendations, market research, and tailored portfolio picks for their subscribers.
This pair of investment research companies have proven performance chips for their recommendations, including getting in early to companies, like Amazon and Netflix
Although both of these sound like useful resources for investors — are they right for you?
Today, we will dissect each of these companies, what they have to offer subscribers, and ultimately land on a verdict for which is the best stock recommendation service.
Stock Picking Services
Before we can dive into the specific companies, we should articulate the following:
- What stock recommendation newsletters do;
- How stock recommendations newsletters operate; and
- How stock recommendations newsletters differentiate themselves from wealth managers and bloggers.
The most defining element of a stock picking service is that they recommend stocks or other investments and provide supporting research for their picks.
However, these newsletters do not manage your money.
For somebody to manage your money, they need things like licenses, specialized education, and your financial interest as their priority.
Like the Motley Fool and Stansberry Research, stock advisor services simply provide the research and recommendation to buy stocks.
Still, at the end of the day, you decide where to invest your money.
Bloggers are usually one or two people providing their opinions and research in isolation.
These people do not usually have a staff of analysts going through data and creating in-depth reports.
This is in stark contrast to companies like the Motley Fool.
The Motley Fool has teams of analysts, managers, and executives to check and review all the stock recommendations.
The Motley Fool and Stansberry Research are large enterprise companies with full-time employees and an extensive network.
Finally, the services provided by stock market advisor newsletter services like the Motley Fool and Stansberry are typically subscription-based.
Other benefits may include access to exclusive forums where the analysts and researchers respond directly to questions.
They may also provide discounted rates for their affiliate partners, such as thanks, brokerage services, or other tools investors may use.
So, how did they research which stocks to recommend to their subscribers?
There are various methodologies for stock analysis, but the two most popular and prevalent methods are fundamental and technical analysis.
At its core, fundamental analysis looks at the unique components of an individual company and weighs those components against market benchmarks.
For example, fundamental analysts look at financial ratios such as debt to equity ratio, liquidity ratios, and price-earnings ratios, which factor into that company's financial health.
Fundamental analysts do not typically rely on how the company's stock price moves on a day-to-day basis.
Instead, fundamental analysts are more concerned with long-term sustainability and profitability.
Value investors, like Warren Buffett, would be considered fundamental analysts because they look for undervalued companies that are poised for long-term success.
Executive leadership and competitive advantages are other focuses of fundamental research.
Fundamental investors invest for the long-term, so it makes sense to evaluate decision-makers, such as:
- CEOs; and
- Board members.
Competitive advantage is similar to executive leadership because if a company does not have a cohesive strategy and an edge over its competition, it will probably fail to outperform the market or continue to grow as the competition catches up.
Examples of this are all over the technology market because if a significant company fails to innovate, they will most likely fall behind and have difficulty catching up to the pack.
Technical analysis is entirely predicated on stock price movements, stock charts, and how a security is trading on a daily, weekly, and monthly basis.
Additionally, technical analysts utilize formulas, algorithms, and other mathematical strategies to determine how an investment may react under given market circumstances.
Technical analysis is a stark contrast to fundamental analysis because the long-term performance is not as important as the short-term price movements of their stock.
For example, XYZ Corporation may not have a sustainable business model.
However, if the company miraculously has a stellar quarter, its stock price will increase temporarily.
Day traders and swing traders will try to capitalize on this increased volatility and short-term spike as fast as they can.
These traders will utilize stock charts, patterns, and trading volume to their advantage as they build their positions.
Now that we understand the two primary schools of investment thought, we can apply them to the Motley Fool and Stansberry Research.
For the most part, these stock services are better for fundamental investors with a bias toward long-term investments.
Motley Fool is a renowned investment advisor service that started as a small newsletter and has grown into a financial research powerhouse with its flagship service, Stock Advisor.
The Motley Fool was founded in the early 1990s by Brothers Tom and David Gardner.
The brothers realized that retail investors did not have access to timely and in-depth investment research.
All of the research, data, and analysis available to stock investors were either very expensive and only available to Wall Street traders, or it was non-existent.
The Gardener's saw this gaping hole in the marketplace.
They decided to try their hand at crafting accessible and actionable stock market research for the average investor.
Their decision paid off because the internet was picking up steam in popularity.
This “steam” gave them a large platform to launch their investing newsletter.
Initially, they only had a few subscribers.
Still, their stock picks were gaining traction, and they were starting to gain a following.
Fast forward more than 25 years later, and they have millions of subscribers.
Furthermore, the Motley Fools boasts a 400% average return since 2002.
In contrast, the S&P 500 has only returned 95%.
These returns come from their recommendations to invest in companies such as
They have offices in the United States, United Kingdom, Germany, Australia, and many more places worldwide.
Motley Fools flagship service is called Stock Advisor.
Stock advisor is a unique monthly newsletter that combines:
- Stock recommendations;
- Portfolio picks; and
- Other valuable tools for both novice and experienced investors.
For a $99 annual subscription, subscribers will receive:
- A monthly newsletter with two stock picks from the founders;
- Portfolio recommendations from the analyst team;
- Access to the starter stock portfolio list; and
- Much more!
The stock picks from Tom, and David Gardner comprise the core of the Stock Advisor service.
Each brother has his own team of analysts and researchers that perform extensive due diligence and analysis on a shortlist of companies.
Each brother has a unique investment perspective.
Before releasing the next newsletter, they each submit a top stock pick for that month at the end of the month.
Their recommendations include the analysis, commentary, and data they used to arrive at the decision to recommend that particular stock.
Since they choose their companies from many potential Investments, they rarely submit the same stock as their monthly pick.
However, this does happen on occasion, and it is known as an ultimate buy alert.
The next benefit for subscribers is a list of portfolio pics from the top Motley Fool analysts.
Although the Gardner Brothers have their stock recommendations for the month, there are plenty of other potentially lucrative options that might be viable Investments.
The other portfolio picks are also beneficial because they introduce subscribers to new companies, new markets, and potentially new industries.
Additionally, subscribers gain access to the starter stock list.
The starter stock list is a curated group of companies that the Motley Fool recommends everybody consider investing in.
Because the starter socks are a sample portfolio comprised of companies in various industries and sectors.
The Motley Fool team realizes that finding inspiration to research an unfamiliar stop or industry can be tricky.
By providing a starter stock list, they hope to mitigate this fear and tunnel vision.
To mitigating this fear, they recommend companies with positive track records and financial performance.
*** SPECIAL ALERT -- Wednesday, October 20, 2021 -- MOTLEY FOOL STOCK ADVISOR RECAP–LAST 5 YEARS THEIR AVERAGE PICK IS UP 218% ****
The year 2020 was tough in so many obvious ways, but if you were a Motley Fool subscriber you are smiling given that 22 of the Motley Fool's 24 stock picks from 2020 are up; and the average return of those 24 picks thru July 3, 2021 is +93% compared to the SP500's 39%!
Better yet, we have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years, 60 months and over 120 stock picks. As of Friday, August 3, 2021, their 2019 picks are up 130%; their 2018 picks are up 232%, their 2017 picks are up 215%; and their 2016 picks are now up 423% for an average return of 218% over the last 5 years. 88% of their picks were profitable and 57 our to 120 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 before the crash and it is up 689%
- Zoom Video (ZMD) picked July, 2019 and it is up 406%
- Fiverr (FVRR) originally picked September, 2020 and it is up 177%
- Shopify (SHOP) picked March, 20216 and it is up 4,432%
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Updated as of September 18, 2021 -- The Motley Fool Stock Advisor continues to crush the market, and outperform all of the others stock newsletters we track. In fact, it has been the best source of stock picks for the last 4 years in a row. If you subscribed to the Motley Fool in January 2020 and bought equal amounts of all of their 24 picks for 2020 you now have a 87% return compared to the market's 43%. 18 of those 24 stocks are up, 6 have at least doubled, and 2 have more than tripled. Their top performer from 2020 is TESLA which is now up 780% in a year and a half. >/p>
In fact, over the last 5 years the average Motley Fool stock pick has more than tripled, being up 219%. Impressively, 99 of their 120 picks over the last 5 years are profitable and 54 of those have more than doubled! This time period covers the 2016 election, the Trump administration, the China trade negotiation, COVID, and now the Motley Fool is continuing their excellent stock picks with many of their 2021 stock picks already up double digits.
Now for 2021, with a new President, a COVID vaccine, and the economy roaring back to life, most analysts expect the second half of the year to be the best! So... make sure you have the right stocks in your portfolio so you can CRUSH THE MARKET like their last 5 years of stock picks have done! Here is their schedule for the next few weeks:
- September 23, 2021 - David's List of 5 Best Stocks to Buy Now List
- October 7, 2021 - Tom's New Stock Recommendation
- October 14, 2021 - Tom's List of 5 Best Stocks to Buy Now
- October 21, 2021 - David's New Stock Recommendation
Remember, 83% of their recommendations from 2016 to 2020 were profitable with an return of 219%. So if you have at least 5 years to invest, we haven't found any better source of stock picks. When you subscribe, you also get full access to all of their recent picks.
Stansberry investment research is another reputable investment advisor service with a similar track record to Motley Fool.
Porter Stansberry founded the Stansberry investment research company in the early 1990s. He has grown his platform to over 500,000 subscribers and 70,000-lifetime members.
If you visit their website, customer service and a strong brand identity are essential to the Stansberry team.
Stansberry's flagship service is their Investment Advisory subscription.
For $199, subscribers receive:
- Twelve issues of the publication;
- Access to members-only reports; and
- An exclusive members-only daily email.
Each monthly issue includes:
- An in depth review; and
- “Ultimate recommendation” of a stock to buy.
The Investment Qdvisory philosophy is focused on long-term, fundamental analysis for investors.
Stansberry's strategy is not for short-term trading because they want their investments to grow over time.
In addition to their monthly stock picks, Stansberry Investment Advisory also provides subscribers with access to members-only reports.
These reports touch on topics from investing to tax strategy and alternative investments, including gold.
These additional reports can be very insightful, especially for subscribers who have been curious about other asset classes but don't know where to start.
The exclusive reports also include:
- Comprehensive strategies for financial crises;
- Black Swan events; and
- Other financial stimuli that are not necessarily related to stock investments.
Stansberry Investment Advisory subscribers will also receive access two daily emails curated by their analysts.
This daily email is called the Stansberry Digest.
It is an excellent reference because it cuts through the market noise and provides insightful thoughts on significant events.
Furthermore, this reference includes potential investment strategies based on how they unfold.
Stansberry is unique among investment research companies because they offer a truly free trial.
Other services do not offer any free trials, and if they do, they are usually for a week or less.
Potential subscribers can demo investment advisory for 30 days for free before deciding whether they will subscribe or not,
This is an excellent deal for something that is a reputable service.
Stansberry also offers various other stock and investing recommendation subscriptions that are designed to work in tandem with investment advisory.
Since investment advisory is geared toward long-term stock investors, these other subscriptions highlight alternative investments and other investment strategies that can potentially bolster returns and provide access to different markets.
True Wealth Is the next highest rated service from Stansberry.
True Wealth takes a unique approach because they look at conservative alternative Investments and what they call “overlooked” opportunities in the market.
Examples of alternative Investments included in the true wealth subscription are Hong Kong stocks, oil and gas royalties from Texas, government tax certificates, and more.
Pricing for this service is also $199 per year.
It comes with additional insights from the editors and a different newsletter curated for subscribers interested in exploring alternative Investments without putting their capital at-risk.
If you are comfortable with your core stock portfolio, utilizing a service like True Wealth can be a great way to explore other options and potentially boost your gains.
Both the Motley Fool and Stansberry Research are fundamental research services.
Both options seem very similar on the surface, but each contains some essential differences.
The most significant difference between the two services is that Motley Fool Stock Advisor provides two stock recommendations every month.
On the other hand, Stansberry only provides just one.
The Motley Fool is cheaper than Stansberry and provides more recommendations.
While a subscription to the Motley Fool is just $99 for the year…
…an annual subscription to Sansbury is $199 per year.
The Motley Fool is more transparent about the performance of its investments.
In contrast, Stansberry does not provide as much information about how its recommendations have performed over time.
Since entering into these short positions is much more complicated and potentially risky, these types of investments are not ideal for beginner and novice investors.
When it comes to investing your money in the stock market…
…it pays to research your potential investments before putting any money into them.
Utilizing reputable stock advising services, such as the Motley Fool Stock Advisor or Stansberry Investment Advisory subscriptions, can provide:
- A wealth of information; and
- Tools to make your investing Journey smoother and easier to navigate.
It's safe to say that Stansberry and the Motley Fool offer substantial investment advising services.
However, the Motley Fool ultimately has the edge over the Stansberry investment advisory service.
Not only does a Motley Fool subscription provide two stock picks per month or half the price of Stansberry, but they also offer more actionable resources for investors through their portfolio pics, starter stock portfolio, and members-only forums.
If you choose to try either of these services, you must remember their predictions and recommendations are not guaranteed successes.
You should still perform your own research and come up with your own conclusion before putting any of your hard-earned money into investment
WALL STREET SURVIVOR'S BEST OF THE BEST LIST
*** Wednesday, October 20, 2021 ALERT—Motley Fool Picks Still CRUSHING the SP500!****
The Motley Fool Stock Advisor’s stocks picks, even with this COVID crisis, have been performing very well as of late.
Overall, their 24 stocks picks from 2020 are up 115% compared to the SP500 return of 25%. Keep in mind, these FIVE very important tips regarding the Motley Fool Stock Picks.
Tip #1 is that you need to buy them as soon as you get the alert because the stocks typically rise 2-5% in the first 24 hours of the pick being released.
Tip #2 is that I buy about $2,000 of each pick and I immediately place a 20% stop loss order to control risk. Two of their picks got stopped out in the last 12 months.
Tip #3 is that their next stock pick should come out Thursday, so make sure you have subscribe now so you are ready.
Tip #4 is to always read your emails from the Fool because they do tell you when to sell stocks.
Tip #5 is to get A Full Year of Recommended Stock Picks Now $99 for New Members