The Motley Fool Review 2024

What is Motley Fool?

The Motley Fool, established in July 1993 by brothers Dave and Tom Gardner, has earned a significant reputation in the financial industry. Drawing inspiration from court jesters who, under the guise of comedy, were allowed the freedom to “speak truth to power,” the Gardners sought to bring the same straightforward honesty to stock investors. Hence, the name “The Motley Fool” came to symbolize their mission to provide transparent, no-nonsense financial guidance.

The brothers’ investment philosophy, characterized by a long-term perspective and patient approach to investing, underlies all The Motley Fool’s premium services, including the flagship Motley Fool Stock Advisor and Rule Breakers.

David Gardner, in particular, stresses the importance of holding onto high-growth stocks despite short-term market volatility, a strategy that has proven effective over the years.

Renowned for their investment services, Motley Fool’s Stock Advisor and Rule Breakers stand out for their focus on undervalued, high-growth stocks.

Each service delivers two carefully curated stock picks per month, chosen with an eye towards substantial potential returns. Each pick is supported by meticulous analysis of market trends and company performance, equipping subscribers with a comprehensive understanding before making investment decisions.

Over the decades, Motley Fool’s recommended stocks have consistently outperformed the broader market, showcasing the efficacy of their approach. Members also benefit from a selection of “Starter Stocks,” ideal for long-term investors aiming to construct a diversified and resilient stock portfolio.

From its humble beginnings as an investment newsletter, The Motley Fool has expanded into a comprehensive investment research platform offering multiple subscription services.

The platform’s “Fools,” as the loyal members call themselves, have found great value not just in the freely available articles on the internet, but more notably in the premium services that have proven to generate profitable returns.

External Motley Fool Reviews & Ratings

Here are some reviews from traders who have experienced the platform firsthand:

The Motley Fool Investing Style

The Motley Fool’s products are diverse but have one thing in common: they recommend a well-diversified buy-and-hold strategy. The Motley Fool asks its investors to build a portfolio of at least 25 stocks they are prepared to hold for five years.

This makes The Motley Fool’s research appropriate for most people who have an investment horizon of at least five years. Even its riskier picks are meant to be bought and held. When the outlook of stock significantly decreases, The Motley Fool does issue sell guidance as appropriate.

The Motley Fool Subscriptions

Not long after moving from the newsletter format, The Motley Fool introduced its flagship investment service in 2003, Stock Advisor, a stock-picking service bringing you two new stock picks per month as well as other stock services. About a year later, The Motley Fool introduced Rule Breakers, a similar service but focused on hyper-growth, breakout stocks.

The Motley Fool’s newer subscriptions include Rule Your Retirement, Everlasting Stocks, and the real estate-focused option, Real Estate Winners.

Subscribers to The Motley Fool’s services get more than just stock tips; they also receive the necessary tools to understand the dynamics of the stock market better. This includes stock pick recommendations and explanations about why the analysts believe in the potential of these picks.

Let’s look closer at each of these.

The Motley Fool Rule Your Retirement

Rule Your Retirement is The Motley Fool’s least expensive subscription. It is also frequently overlooked, though it’s the one service that truly has something for everyone: targeted guidance on investing for and during retirement.

Its topics include how to maximize your social security payout, how much money you should be saving for retirement, and how to make the most use of your home equity during your retirement years. Even if you aren’t saving for retirement yet, you should be, and Rule Your Retirement can help you learn how.

Rule Your Retirement divides its articles and products into the following categories:

• Build Your Best Portfolio
• How to Retire
• Are You Saving Enough to Retire?
• IRAs, 401(k)s, and Roths
• Everyday Finances
• Health and Wellness
• Property and Mortgages
• Estate Planning
• Insurance
• Paying for College

There are usually two or more new articles or resources added every week and a robust online community of users who post about investing ideas and other retirement-related topics. For more information, be sure to check out our full review.

Rule Your Retirement is competitively priced at $149 annually. For what you get, this is an outstanding price.

The Motley Fool Stock Advisor

If you’ve dipped your toes into the pool of investment services, chances are you’ve heard of The Motley Fool’s Stock Advisor. As the oldest and arguably the most successful service offered by The Motley Fool, Stock Advisor has earned a reputation for its insightful and profitable stock recommendations.

The Motley Fool Stock Advisor’s Monthly Stock Picks

At the heart of the Stock Advisor service are its monthly stock picks. Released at 1 PM on the first and third Thursdays of each month, these selections are the result of intensive research and careful deliberation by a team of expert analysts.

Over the years, these stock picks have achieved an impressive cumulative return of 603%* since inception, attesting to the accuracy and effectiveness of the service’s stock selection approach.

Each pick is not just a name and a stock price; it comes with a detailed analysis that provides a comprehensive understanding of the chosen company. This analysis includes the company’s current position, its future growth prospects, and the reasoning behind its selection.

This comprehensive approach ensures that you, as an investor, are not just blindly following recommendations, but are gaining a deep understanding of why a particular stock could be a valuable addition to your portfolio.

The Learning Journey

Investors, especially those new to the stock market, may initially feel tempted to invest in every stock that Stock Advisor picks. While this is a testament to the service’s consistent track record, The Motley Fool encourages individual learning and decision-making.

As you journey through the world of investing with Stock Advisor, you’ll gradually learn to develop your discerning eye, assessing the suitability of each pick based on your individual investment goals, risk tolerance, and portfolio composition.

More Than Just Monthly Picks

The Motley Fool Stock Advisor offers more than just twice-monthly stock picks. Members also get access to “Best Buys Now,” which features timely guidance based on the current market situation, “10 Timely Stocks” which are set to make short-term gains, “10 Foundational Stocks” that are intended for long-term growth, and “5 ETFs” for those who prefer a diversified approach to investing.

Furthermore, for those starting on their investment journey, Stock Advisor provides a list of “Starter Stocks.” These are carefully selected stocks that are considered good foundational pieces for a new investment portfolio.

Pricing and Subscription

While the regular price for the Stock Advisor service is $199 per year, The Motley Fool frequently offers promotional pricing for new members.

The introductory price for the first year of service is often discounted to just $79*, making this wealth of financial guidance and stock recommendations even more accessible. Please note that this discounted rate applies to the first year only, with subsequent years billed at the regular rate of $199.

Click here to read our full review of Motley Fool Stock Advisor Service.

If Stock Advisor sounds interesting to you, you can sign up here to get the price lowered from $199 to only $79* for the first year.

*$79 promotional price for new members only. 60% discount based on current list price of Stock Advisor of $199/year. Membership will renew annually at the then-current list price..

The Motley Fool Real Estate Winners

In 2019, The Motley Fool expanded into real estate investing with its subscription, Real Estate Winners. The Motley Fool describes this subscription as “a premium solution to provide you with multiple ways of succeeding in real estate investing.”

Priced at $249, Real Estate Winners, its main product is monthly Real Estate Investment Trusts (REIT) recommendations, and with a subscription, you get at least one each month. You also get access to real estate investing educational resources, updates on previous REIT recommendations, and Quarterly Top Ten investment opportunities.

Real Estate Winners is a good product if you want to take advantage of real estate investment and tax savings opportunities but don’t know where to start. Information on real estate investing is not as readily available as other investment types, especially stocks. Relying on a trusted research firm like The Motley Fool can help you avoid costly mistakes.

Real Estate Winners’ choices return an average of 21% last year. Real estate can save you more when it comes to taxes. You get the same tax advantages when you invest in a REIT as you do when you buy a physical piece of property. To check out more about Real Estate Winners, check out our review.

You can receive any current promotions from Real Estate Winners if you sign up here.

The Motley Fool Rule Breakers

Capitalizing on the success of the Stock Advisor service, The Motley Fool launched Rule Breakers less than two years later. Conceptualized and designed by Dave Gardner, this service takes a unique approach to stock selection, identifying early-stage, high-growth companies with the potential to disrupt their industries.

Monthly Stock Picks with a Taste for Risk

Like its predecessor, Rule Breakers provides two new stock picks each month, released at 11 AM EST on the second and fourth Thursday. What sets Rule Breakers apart, however, is its propensity for riskier investments.

This service aims to identify innovative companies in their early stages before they achieve breakout success. While this strategy might involve higher risk, it also opens up the possibility of substantial returns if the selected companies achieve their potential.

Rule Breakers’ stock picks represent companies that are spearheading new technologies and innovative processes.

While these companies may be riskier than more established players, they also have the potential for significant returns if their innovations capture market share and drive industry transformation.

Additional Resources: Best Buys Now and Motley Fool Live

Along with the monthly stock picks, Rule Breakers members also receive access to the “Best Buys Now” list updated each month. This list features stocks that, according to The Motley Fool’s analysis, are poised for short-term gains and thus make excellent buys at the current moment.

Furthermore, Rule Breakers members also enjoy access to Motley Fool Live, a streaming financial news service that offers market analysis, interviews with industry experts, and interactive discussions on various investment topics.

Rule Breakers’ Impressive Track Record

Despite its appetite for riskier, disruptive stocks, Rule Breakers has demonstrated a commendable performance record, more than doubling the returns of the S&P 500 over the past 20 years. To gain a deeper understanding of how Rule Breakers achieves these impressive results, you can check out our detailed review by clicking here.

How Much Does Rule Breakers Cost?

The regular subscription price for Rule Breakers is $299 per year. However, for those willing to embrace risk for potentially higher returns,

The Motley Fool frequently offers a generous 67%* discount for the first year, bringing the cost down to just $99*. Keep in mind, this discounted rate applies for the first year only, with subsequent years billed at the standard rate of $299.

If Rule Breakers sounds like it might be for you, you can click this link to find out more and receive a 67%* discount on Rule Breakers, which will cost you $99 for the first year instead of the usual $299.

*$99/year is an introductory offer for new members only. $200 discount based on the current list price of Rule Breakers of $299/year. Membership will renew annually at the then-current list price.

The Motley Fool Everlasting Stocks

Everlasting Stocks is yet another stock service, except for appropriate stocks to “buy today and hold forever.” You won’t necessarily get new picks every month, but you will always have access to all the stocks on the Everlasting Stocks list.

Everlasting Stocks allows you to benefit from The Motley Fool’s invaluable individual stock guidance only using a few minutes a month. You won’t have to buy and sell as frequently as you will with Stock Advisor and Rule Breakers, so it’s perfect for busy professionals who still want to do some individual stock investing. You can find out more by reading our Everlasting Stocks review.

If you think you might be interested in these Motley Fool stock picks, you can sign up for Everlasting Stocks to get the product for only $99 for the first year, around a third of the regular price of $299.

*$99/year is an introductory offer for new members only. $200 discount based on the current list price of Everlasting Stocks of $299/year. Membership will renew annually at the then-current list price.

Who is The Motley Fool Best For?

The Motley Fool services cater to a broad range of investors, each with different financial goals, risk tolerances, and investment horizons. Here’s a general guideline about who may find the most value in The Motley Fool’s offerings:

• Novice Investors: If you are new to investing, The Motley Fool is a great place to start. Their premium services like Motley Fool Stock Advisor provide stock pick recommendations backed by in-depth analysis, offering an excellent way to learn about the market. The “Starter Stocks” list is a particularly useful feature for beginners who are looking to establish a diversified stock portfolio but are unsure where to start.
• Long-Term Investors: The Motley Fool strongly advocates a buy-and-hold investment strategy, making it an ideal fit for long-term investors. Services like Everlasting Stocks provide investment opportunities with potential for long-term growth. This strategy aligns with investors who are not looking for quick returns but rather sustainable growth over years, or even decades.
• Individual Stock Investors: For those who prefer to invest in individual stocks rather than mutual funds or ETFs, The Motley Fool provides a wealth of information and guidance. Their stock recommendations across various sectors can help individual investors identify high-growth stocks that could substantially enhance their investment portfolio’s performance.
• Growth-Focused Investors: If you are someone who is willing to take on higher risk for potentially higher rewards, Motley Fool Rule Breakers might be suitable for you. This service targets disruptive, innovative companies poised for hyper-growth, giving investors exposure to potentially lucrative, albeit riskier, investment opportunities.
• Retirement Savers: The Motley Fool’s Rule Your Retirement service is designed specifically for those planning for retirement. It provides financial guidance on maximizing social security payouts, utilizing home equity during retirement years, and strategies on how to save enough for a comfortable retirement.
• Real Estate Investors: With the launch of Millionacres Real Estate Winners, The Motley Fool has stepped into the realm of real estate investment. These services are great for investors who want to diversify their portfolios with real estate investments without necessarily buying physical properties.

Is The Motley Fool Legit?

When navigating the complex world of investment information, a common and pertinent question that many potential members have is whether The Motley Fool is a legitimate service. The short answer to this question is: yes, The Motley Fool is a credible and highly reputable financial services company.

Founded by the Gardner brothers in 1993, The Motley Fool has been in operation for several decades, providing guidance on investing to millions of people around the world. Its track record speaks volumes about its legitimacy.

The company’s main goal is to help individuals make informed financial decisions by providing in-depth and research-backed stock recommendations.

One of the hallmarks of The Motley Fool’s legitimacy is their transparency. The investment guidance provided by The Motley Fool is the result of thorough analysis and research.

Moreover, the company is very open about their past recommendations, whether they have been successful or not, which is a positive sign of an investment advisor’s reliability.

Pros and Cons of The Motley Fool

Here are the pros and cons of The Motley Fool:

Pros

• Premium Investment Research – The Motley Fool does an excellent job gathering information and packaging it in a usable way. You’ll get not just analyst recommendations but also the right kind of tools to help you make your decisions. The Motley Fool also publishes analyses contradicting its recommendations to enable you to see both sides of the investment thesis.
• Multiple Targeted Subscriptions – Unlike some investment research firms, The Motley Fool doesn’t include unrelated information in the same product. With each of its subscriptions and bundles, you know exactly what you will get. And there are a lot to choose from, making it easier to find at least one that will fit your needs.
• Low Prices – Especially with its first-year promotions, Motley keeps investment research affordable. Making products like Stock Advisor available for discounted prices, The Motley Fool is betting that you’ll willingly pay the full fee for second and subsequent years. They’re often right.
• Transparency – The team of analysts are completely transparent with their stock picks. They, along with their analysts are upfront with the stocks they own, so you can count on the fact that they believe in their picks. This is not a pump and dump.

Cons

• Newer Products Lack Establish Track Records – If there is one drawback to The Motley Fool, its newer products have only been around for two or three years, which is the case for the Real Estate Winners subscription.

Unlocking Investment Potential

Comprehensive Research and Analysis

The Motley Fool stands out for its commitment to providing comprehensive research and analysis to empower investors. With a team of seasoned analysts and industry experts, The Motley Fool offers in-depth insights into market trends, investment strategies, and individual stock opportunities.

From detailed stock reports to thematic analysis, subscribers gain access to a wealth of information designed to enhance their investment decision-making process.

By emphasizing the importance of patience, discipline, and diversification, The Motley Fool equips investors with the tools they need to navigate market volatility and achieve their financial goals over time. Whether you’re a novice investor or a seasoned professional, The Motley Fool’s commitment to quality research ensures that you’re well-informed and positioned for success in the ever-changing world of investing.

Transparent and Trustworthy Guidance

Transparency and trustworthiness are core principles at The Motley Fool, guiding its interactions with subscribers and the broader investing community. Unlike some investment research firms, The Motley Fool prioritizes honesty, integrity, and accountability in all its recommendations and analyses.

Subscribers can trust that the analysts at The Motley Fool have their best interests at heart, providing unbiased insights and recommendations based on rigorous research and analysis.

Get Started With The Motley Fool

Empowering Investors for Success

Educational Resources and Community Engagement

One of the most valuable aspects of The Motley Fool is its extensive library of educational resources and vibrant community engagement. From beginner’s guides to advanced investment strategies, The Motley Fool offers a wealth of educational content designed to help investors of all levels improve their financial literacy and investment acumen.

Whether you’re looking to learn the basics of investing or delve into more advanced topics like options trading or value investing, The Motley Fool has you covered.

Value-Driven Approach and Consistent Performance

At the heart of The Motley Fool’s success is its value-driven approach to investing and consistent track record of performance. Unlike many investment firms that focus solely on short-term gains or market speculation, The Motley Fool prioritizes long-term value creation and sustainable growth.

By identifying high-quality companies with strong competitive advantages and durable business models, The Motley Fool helps investors build resilient portfolios capable of weathering market fluctuations and delivering superior returns over time.

Top Alternatives to The Motley Fool

1. Seeking Alpha

Seeking Alpha is a comprehensive investment research platform that offers a diverse range of content, including stock analysis, market news, and investment strategies.

It provides users with access to articles and research reports contributed by both professional analysts and individual investors, fostering a vibrant community of discussion and debate. Seeking Alpha’s features extend beyond stock picks, offering insights into market trends, macroeconomic factors, and industry-specific developments.

One notable feature of Seeking Alpha is its focus on crowd-sourced research, allowing users to follow and interact with their favorite contributors. This social aspect enhances the platform’s depth and breadth of coverage, providing users with diverse perspectives on investment opportunities.

2. Morningstar

Morningstar is a leading provider of independent investment research, renowned for its rigorous analysis and comprehensive coverage of financial markets. With a focus on mutual funds, ETFs, stocks, and bonds, Morningstar offers investors valuable insights into asset allocation, portfolio construction, and risk management.

Its extensive database of investment products, accompanied by insightful commentary and ratings, empowers users to make informed investment decisions.

One of Morningstar’s standout features is its proprietary rating system, which evaluates investment products based on factors such as performance, risk, and cost. This allows users to quickly assess the quality and suitability of various investment options, facilitating more confident decision-making.

3. Zacks Investment Research

Zacks Investment Research is a leading provider of investment recommendations and stock analysis, offering a range of products and services tailored to individual investors, financial advisors, and institutional clients. Zacks’ flagship product, the Zacks Rank, utilizes a quantitative model to identify stocks with the highest potential for outperformance, providing users with actionable insights for building profitable portfolios.

Additionally, Zacks offers comprehensive research reports, earnings estimates, and stock screeners to help investors uncover promising investment opportunities.

One standout feature of Zacks is its focus on earnings estimates and analyst recommendations, which play a crucial role in guiding investment decisions. By leveraging Zacks’ proprietary methodologies and data-driven approach, users can gain an edge in the market and capitalize on emerging trends.

The Motley Fool Review: The Bottom Line

Here at Modest Money, The Motley Fool is one of our favorite investment research companies. Their obvious earnestness in providing good picks and excellent services to their clients results in solidly researched offerings. They pick many winners, but they are the first to acknowledge they pick some losers too

This is why it’s essential for investors to follow their guidance to hold their Motley Fool stock picks for at least five years (unless they change their guidance to “sell”) and why they recommend a minimum diversification of at least 25 stocks. Stock picking is a risky business, which is why diversification is important.

Here are some investors who will benefit most from one of The Motley Fool subscriptions:

• Investors who want to learn more about an investment class
• Investors willing to accept higher risk to beat the market
• Investors willing to take the time to read the analysis behind their recommendations
• Investors wanting to take advantage of The Motley Fool perks like its robust online community and Motley Fool Live
• Investors wishing to actively control their investment choices
• Investors of any level, beginner to advanced

Here are the links again you can use to sign up for The Motley Fool products and get great discounts:

If you are wondering where to start, it depends on what you’re looking for. But Rule Your Retirement is relevant no matter what kind of equities interest you. And Motley Fool Stock Advisor is an excellent service if you want to learn more about individual stock investing, including getting access to great stock picks.

Depending on what you’re interested in, the other services might also be appropriate. As The Motley Fool analysts often say in their live broadcasts, Fool On!

*Returns as of 2/7/24. Past performance is no guarantee of future results. Individual investment results may vary. All investing involves risk of loss.