What is The Motley Fool?
The Motley Fool, established in July 1993 by brothers Dave and Tom Gardner, has earned a significant reputation in the financial advisory 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 advice.
The brothers’ investment philosophy, characterized by a long-term perspective and patient approach to investing, underlies all 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 newsletter 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. Subscribers 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 subscribers 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 Review & Ratings
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The Motley Fool Investing Style
Motley Fool’s products are diverse but have one thing in common: they recommend a well-diversified buy-and-hold strategy. 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, 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, 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 two real estate-focused options, Millionacres Real Estate Winners and Millionacres Mogul.
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 Motley Fool’s least expensive subscription. It is also frequently overlooked, though it’s the one service that truly has something for everyone: targeted advice 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 will 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
- 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. This link will take you to an offer of Rule Your Retirement at $99 for one year or $149 for two years, up to 50% off the regular price.
The Motley Fool Stock Advisor
If you’ve dipped your toes into the pool of investment advisory 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 led by David Gardner.
Over the years, these stock picks have achieved an impressive cumulative return of 394%, 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. Subscribers also get access to “Best Buys Now,” which features timely advice 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 advice 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.
*Billed annually. Introductory price for the first year for new members only. First year bills at $79 and renews at $199.
The Motley Fool Real Estate Winners
In 2019, the Motley Fool expanded into real estate investing with its two Millionacres subscriptions, Real Estate Winners and Moguls. Motley Fool describes these subscriptions as “premium solutions to provide you with multiple ways of succeeding in real estate investing.”
Priced at $249, Real Estate Winners is the cheaper of the two Millionacres subscription options. 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 subscribers 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 subscribers 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.
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 Motley Fool’s invaluable individual stock advice 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.
The Motley Fool Millionacres Moguls
Priced significantly higher at $2,999 than most of Motley Fool’s other subscriptions, Millionacres Moguls strives to provide you with the best commercial real estate investment opportunities you’re likely to find as an individual investor.
With Moguls, you’ll get private commercial real estate investment opportunities and recommendations for publicly traded real estate equities and REITs. Best of all, you’ll get access to a network of in-person investing events held across the country.
And you’ll have ongoing access to the analysts making Moguls’ recommendations if you have questions or want to know more about their picks. Of the subscriptions mentioned in this review, Moguls is the only one that offers you this opportunity. You can find out more about Moguls by reading this review.
And to sign up for Millionacres Mogul and take advantage of current offers, you can sign up here.
Who is 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 the 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 advice. 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 advice 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 and Millionacres Mogul, 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 advice, a common and pertinent question that many potential subscribers 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 advice 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 advice 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 Motley Fool:
- 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. 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, 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, Motley Fool is betting that you’ll willingly pay the full fee for second and subsequent years. They’re often right.
- Transparency – Tom and Dave Gardner 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 advice. This is not a pump and dump.
- Newer Products Lack Establish Track Records – If there is one drawback to Motley Fool, its newer products have only been around for two or three years, which is the case for the two Millionacres subscriptions.
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 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 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!