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.

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 stands 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.

More Info About Tom and David Gardner

The Motley Fool was founded in July 1993 by brothers Tom and David Gardner, who have since become influential figures in the world of investing. Their vision was inspired by the concept of court jesters, or “fools,” who could speak truth to power without fear of retribution. This ethos of transparency, honesty, and straightforward financial guidance underpins the company’s mission and name.

Tom and David Gardner have always emphasized a long-term investment strategy, advocating for patience and persistence in the face of market fluctuations. Tom Gardner, known for his deep analytical skills and focus on value investing, has been instrumental in shaping the company’s rigorous research methodologies.

David Gardner, on the other hand, is renowned for his growth investing philosophy and his ability to identify high-potential stocks before they become market favorites.

Their combined expertise and contrasting investment styles have contributed to the success of The Motley Fool’s flagship products, such as Stock Advisor and Rule Breakers. Under their leadership, The Motley Fool has grown from a small investment newsletter to a leading financial services company with a global presence.

Their commitment to investor education and empowerment continues to drive the company forward, helping millions of individuals make informed financial decisions.

External Motley Fool Reviews & Ratings

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

Motley Fool Review Videos

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.

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.

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..

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. They 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.

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.

Benefits and Drawbacks of The Motley Fool

Benefits

Premium investment research

The Motley Fool excels in gathering and packaging financial information into usable and actionable formats. Subscribers receive not only stock recommendations from expert analysts but also tools to help understand the rationale behind each pick. This comprehensive approach ensures that investors are well-informed and can make confident investment decisions.

Multiple targeted subscriptions

The Motley Fool offers a variety of subscription services, each tailored to specific investment needs and preferences. From Stock Advisor to Rule Breakers, subscribers can choose products that align with their investment strategies. This targeted approach ensures that users receive relevant information without wading through unrelated content, enhancing the value of each subscription.

Low prices

The Motley Fool is known for its competitive pricing, particularly with promotional offers for new members. These introductory discounts make it accessible for new investors to try the service without a significant financial commitment. The affordability of the first-year subscription often leads to continued membership due to the perceived value and benefits gained from the service.

Transparency

Transparency is a cornerstone of The Motley Fool’s approach. The analysts openly share their stock picks and their own investments, ensuring that subscribers know the analysts are personally invested in their recommendations. This level of openness builds trust and confidence among subscribers, distinguishing The Motley Fool from other investment research firms.

Expert stock recommendations

The Motley Fool’s team of seasoned analysts provides well-researched and insightful stock picks. Each recommendation is accompanied by detailed analysis and commentary, helping investors understand the potential and risks of each pick. This expert guidance is invaluable for investors looking to build a robust portfolio.

Regular market updates and alerts

Subscribers receive frequent updates and alerts on market trends, stock performance, and new recommendations. These timely communications help investors stay informed about market developments and adjust their strategies as needed. The proactive approach ensures that subscribers are never left in the dark about important financial news.

Strong community support and discussion forums

The Motley Fool fosters a vibrant community of investors who share insights, experiences, and advice through forums and discussion groups. This collaborative environment enhances the learning experience and provides a support network for both novice and experienced investors. The community aspect adds significant value to the overall service.

Educational resources

In addition to stock picks, The Motley Fool offers a wealth of educational materials, including articles, videos, and tutorials on various investment topics. These resources help investors improve their financial literacy and investment skills, making the platform a valuable educational tool.

Drawbacks

Newer products lack established track records

Some of The Motley Fool’s newer subscription services do not yet have long-term performance data. While flagship products like Stock Advisor have proven track records, investors might be cautious about trying newer offerings. This lack of historical performance data can make it challenging to assess the potential value of these newer services.

Recommendations may not suit all investment styles

The Motley Fool primarily focuses on long-term, buy-and-hold strategies, which might not appeal to active traders or those with different investment philosophies. Investors seeking short-term gains or employing different strategies may find the recommendations less useful. This can limit the platform’s appeal to a broader range of investors.

Potential information overload for beginners

The wealth of information and recommendations provided by The Motley Fool can be overwhelming for novice investors. The abundance of data, analysis, and updates may make it difficult for beginners to discern which advice to follow. Without proper guidance, new investors might struggle to navigate the platform effectively.

Navigating the Drawbacks

While The Motley Fool has some drawbacks, they can be navigated with the right approach. For newer products, consider starting with the flagship services like Stock Advisor, which have a proven track record.

Investors with different styles can still benefit from the educational resources and community discussions to complement their strategies. Beginners should take advantage of the platform’s educational materials and community support to gradually build their knowledge and confidence.

Overall, The Motley Fool remains a valuable resource for investors looking to make informed, long-term investment decisions.

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.

4. TipRanks

TipRanks is a powerful investment research platform that aggregates and analyzes data from a variety of financial analysts, insiders, hedge funds, and individual investors. It offers users a unique perspective on the market by ranking and tracking the performance of these experts.

One of TipRanks’ standout features is its comprehensive Analyst Ratings tool, which provides a clear overview of the latest stock recommendations from top analysts. This tool helps users identify potential investment opportunities based on expert opinions and consensus ratings.

TipRanks also offers a suite of additional tools, including an Insiders’ Hot Stocks feature, which tracks buying and selling activities of corporate insiders, and a Smart Score, which uses a proprietary algorithm to rate stocks based on multiple factors, including analyst ratings, insider activity, and hedge fund sentiment. These features combined provide investors with a well-rounded view of the market and help in making more informed investment decisions.

Full TipRanks Review

5. Simply Wall St

Simply Wall St is an innovative investment platform designed to simplify the investment process by providing visually appealing and easy-to-understand stock analysis. The platform uses infographics and data visualizations to help investors quickly grasp key financial metrics and company fundamentals.

A unique feature of Simply Wall St is its Snowflake Analysis, which visually represents a company’s performance across five key areas: value, future performance, past performance, financial health, and dividend. This helps users quickly identify strengths and weaknesses and compare companies at a glance.

Simply Wall St also offers detailed company reports, which include growth forecasts, valuation metrics, and risk assessments. These reports are updated regularly, ensuring that investors have access to the most current information. Additionally, the platform’s user-friendly interface and personalized watchlists make it an excellent tool for both novice and experienced investors looking to build and manage their portfolios efficiently.

Full Simply Wall St Review

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:

*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.