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Stock investing can be a challenging task, especially for someone just starting out. Thousands of companies with regular press releases can be difficult to track, so why not gain the upper hand by using some professional help? The Motley Fool is one such platform that offers a stock advisory service for as little as $79 for the first year for new members. The premium newsletters offered by The Motley Fool range from $100 to $1,999 per year, depending on the package. Newsletters contain stock picks from across different industries, market capitalization, growth momentum, and much more.
The flagship Stock Advisor service has a proven track record of outperforming the market, returning 376% since inception, compared to the 119% by the S&P 500 during the same period, which shows that they are on solid footing.
This investfox article will guide you through The Motley Fool’s Stock Advisor, its pros and cons, features, and whether it is a good bang for your buck.
The Stock Advisor is the prime offering from The Motley Fool where users can gain access to stock picks, market trends, analyst reviews and much more useful information. Aside from the stock recommendations, the Stock Advisor package also includes:
The Stock Advisor is a great tool for investors who are looking to find new opportunities in the market. The two monthly stock picks and detailed analysis can help pinpoint some key areas to look for in other stocks.
The Stock Advisor has outperformed the S&P 500 index for the past 20 years, which makes it especially interesting for investors with a more active and diversified portfolio.
The standard Motley Fool Stock Advisor charges $79 for the first year and subsequent renewals cost $149 per year. Users also have the option to choose higher subscription tiers, such as Rule Breakers ($299/year) and Cloud Disruptors ($1,999/year). Another useful feature of the Stock Advisor is the ability to review past stock picks and evaluate their performance since the recommendation.
For investors that are more interested in real estate, Stock Advisor offers Millionacres, which is a curated real estate shortlist provided by The Motley Fool.
On occasion, reports may include bonus picks and/or other useful information about the stock picks that were not originally included in the subscription.
The Stock Advisor has an impressive track record of outperforming the market by a sizable margin. While not all of The Motley Fool’s picks turn out to be overperformers, a decent portion of their picks manage to compensate for the underperformance of others. Here are some key data points to consider before signing up for a Stock Advisor account:
While the returns look impressive, investors should keep in mind that The Motley Fool’s stock picks have a long time frame in mind and their picks are meant to be held for 5 years or more to see the full growth potential realized. It is also beneficial to buy equal amounts of their stock picks to easily compare their performance over a specific period of time. For example, buying $5,000 worth of their picks would be a good way of investing solid amounts while testing the performance of the service in the long run.
The performance of The Motley Fool’s picks has also shown the reliability of their sell recommendations, as they consider market conditions and valuations to determine whether a stock is overpriced or not.
"We've held to our principles during two decades of business and two of the worst declines in American market history, and we've been with our members; we've been transparent... We've owned our mistakes and delighted in our successes, and we've lived by our values in an industry that has not demonstrated that." - Tom Gardner
Where The Motley Fool really shines is its ability to simplify the investment process for clients by removing the time and effort required to conduct thorough research and financial analysis for a given stock. With the most time-consuming step out of the way, investors can review The Motley Fool’s analysis papers to understand the methodology and factors that have led to the recommendation, which allows them to gain additional insight into the world of stock valuation and financial analysis.
The Stock Advisor service is also quite affordable, with the base subscription costing just $79 for the first year, which is far below competitors. Subsequent years cost $149, which is also fairly competitive.
Investors can learn about stocks they may have otherwise overlooked, as well as familiarize themselves with catalysts that can cause great shifts in stock prices in the future.
While the base account is relatively affordable in the first year, other features come with steeper prices. The $1,999 package is something that might not be as attractive to a wider range of investors and may contain data that would otherwise be very important to have.
Despite the fact that The Motley Fool boasts impressive average returns, the performance of individual picks may vary considerably. Investors may be recommended a stock that could lose over half of its value within the span of a single year. Therefore, it is essential to critically review the recommendations given by The Motley Fool and judge whether their reasoning for picking the stock seems plausible. While The Motley Fool might have an impressive track record, accurately predicting all of the overperforming stocks is impossible. Investors need to take this into consideration and must not solely rely on the recommendations of the Stock Advisor.
The Motley Fool is a legitimate financial advisory company that has had little to no concerns from customers about the security of their investments, or the validity of the information provided in the analysis of stock picks. The Motley Fool goes as far as to explicitly state that returns are not guaranteed and investors should only risk the amount of money they can afford to lose. They are transparent with all of their stock picks and do not hide the ones that underperformed, so that investors go into the service with realistic expectations, as there is no one size fits all solution when it comes to analyzing winning stocks.
The Motley Fool, as well as other such services, are regulated and clients can file lawsuits if they suspect any foul play.
Such investor newsletters are sometimes questioned as pump-and-dump schemes, but The Motley Fool is one of the most respected financial newsletters on the market. However, the relatively large subscriber base of the Motley Fool could influence the prices of less liquid stocks, which the newsletter usually does not recommend.
Client data, as well as any other sensitive information, is kept safe and secure by the company.
The Motley Fool is a well-regarded financial newsletter with different price tiers to fit the needs of its client base. The base service may be especially attractive for someone who does not shy away from risky trades and would like to get some new recommendations on a regular basis. The base fee is affordable, especially for the first year, and clients can cancel at any time if they are not content with the service. Each stock pick comes with a detailed analysis from The Motley Fool team and includes an overview of financial performance, macroeconomic effects, and future catalysts to look out for. However, the service is not limited to just stock recommendations and users can choose from a variety of subscription packages for real estate and other asset classes.
The sell signals generated by The Motley Fool also have a reliable track record, which increases the probability of fully capitalizing on each investment.
Another helpful aspect of The Motley Fool is the ability to interact and exchange ideas with other investors on the platform.
The Motley Fool also offers wealth management services to its clients, with advisory fees ranging from 0.40% for ETF portfolios to 0.95% for stocks.
While the bundle packages may be a bit expensive, the base fee of $79/year for new members is one of the lowest on the market and saves users a lot of time and energy in researching each individual stock pick. Overall, The Motley Fool is an attractive option for investors who may have limited time on their hands to conduct thorough market research each time they make an investment.
"I would encourage every person every fellow earthling to ask, how am I paying for the financial advice that I'm getting an acting on" - Tom Gardner
New members of The Motley Fool Stock Advisor get a discounted offer of $79 for the first year. The Stock Advisor is also available through multiple bundle deals alongside other The Motley Fool services, such as Backstage and the Epic Bundle. The general base-level fee for the Stock Advisor is $99/year and The Motley Fool recommends starting out with at least $5,000 on the account.
The Motley Fool is a legitimate financial newsletter that generates stock picks curated by The Motley Fool’s analysts. The stock picks have had an impressive track record since its inception in 1993, returning 376% against the S&P 500’s 119%. The Motley Fool is also safe and reliable when handling clients’ data.
Yes. The Motley Fool notifies users about their sell signals, which also includes their reasoning as to why it may be a good time to sell. Some of the selling factors may include overvaluation, macroeconomic headwinds, etc.