Motley Fool Review 2022: Can Stock Advisor Beat the Market?

Jeremy Biberdorf By: Jeremy Biberdorf Aprll 28, 2022
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4.9/5

4.9 rating based on 5 ratings

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In a nutshell: Motley Fool provides a host of investment research subscriptions mostly geared toward individual investors. Best known for its flagship Stock Advisor product, Motley Fool’s other excellent products include Rule Breakers, Rule Your Retirement, Everlasting Stocks, and Millionacres. Read our Motley Fool review to help decide if it’s a good fit for your investing portfolio.

ProductAnnual FeesAvg Returns as of Apr 25, 2022
Rule Your Retirement$149 N/AClick Here for 50% Discount
Stock Advisor$199395% totalClick Here for 56% Discount
Real Estate Winners$24921% annualClick Here for Current Promotion
Rule Breakers$299234% totalClick Here for 67% Discount
Everlasting Stocks$29930% annualClick here for 67% Discount
Millionacres Moguls$2,99922% annualClick here for Current Promotion

NOTE: Stock Advisor and Rule Your Retirement have been around nearly two decades, long enough to realize strong compound returns. Other services on this chart have been around three years, so annual returns are used. The average annualized return of the S&P 500 is 10%.

Pros & Cons

PROS

  • Premium Investment Research
  • Multiple Targeted Products
  • Low Prices (Especially with Promotions)
  • Transparency

CONS

  • Newer Products Lack Track Records

What is The Motley Fool?

Dave and Tom Gardner founded The Motley Fool in July 1993. Its name was derived from court jesters, who not only entertained royal courts but also were freer than the rest of the subjects to “speak truth to power,” which was often done in the guise of comedy. The Gardner brothers wanted to speak the same ground truth to stock investors.

What started as an investment newsletter has grown into an investment research empire with multiple subscriptions and a legion of loyal subscribers who call themselves Fools. You’ve undoubtedly seen at least one of their free articles on the Internet. While their free stuff isn’t bad, the premium services are likely to make you money.

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 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. This occurs in a minority of cases.

Motley Fool Subscriptions

Not long after moving from the newsletter format, 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.

Motley Fool’s newer subscriptions include Rule Your Retirement, Everlasting Stocks, and two real estate-focused options, Millionacres Real Estate Winners and Millionacres Mogul.

Let’s look closer at each of these.

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
  • 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. 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.

Motley Fool Stock Advisor

If you’ve previously heard about any of Motley Fool’s products, you’ve probably heard of Stock Advisor, the company’s oldest and most successful service. Motley Fool Stock Advisor’s main products are its two monthly picks, issued at 1 pm on the first and third Thursdays of the month. Cumulatively, these stock picks have returned 394%.

Stock Advisors picks also come with supporting research so you can see why the stock was selected and make your decision accordingly. At first, you might be tempted to invest in every Motley Fool Stock Advisor pick, but after a while, you will develop a discerning eye. Stock Advisor picks tend to be excellent, but if you are in the individual stock picking game, there’s no point in investing in something unless you believe in it.

In addition to two Motley Fool stock picks per month and the supporting research, you’ll get Best Buys Now, including Motley Fool Stock Advisor’s latest advice, 10 Timely Stocks, 10 Foundational Stocks, and 5 ETFs. Plus you’ll get a list of Starter Stocks to start investing on the right foot. To learn more about Stock Advisor, read our full review.

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.

Motley Fool Real Estate Winners

In 2019, 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 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.

Motley Fool Rule Breakers

Motley Fool’s Stock Advisor was so successful they followed it up with a second stock-picking service less than two years later, Rule Breakers. Like Stock Advisor, Rule Breakers features two new monthly stock picks, which they publish at 11 am EST on the second and fourth Thursday of the month.

While Rule Breakers is similar to Stock Advisor in format, Rule Breakers has an appetite for riskier stocks. Dave Gardner designed Rule Breakers to identify early-state stocks before they break out. These stocks represent companies innovating new processes and technologies, which are inherently risky.

In addition to your two new monthly Motley Fool stock picks, you also get Rule Breakers’ Best Buys Now updated monthly. And you get access to other Motley Fool perks, including its streaming financial news service, Motley Fool Live. To read more about how Rule Breakers has been able to more than double the returns of the S&P 500 over the past 20 years, check out our review

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.

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.

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.

Pros and Cons of The Motley Fool

Here are the pros and cons of Motley Fool:

Pros

  • Premium Investment Research – 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 prices as low as $79, 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.

Cons

  • 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.

Motley Fool: The Bottom Line

Here at Modest Money, 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:

Product
Rule Your RetirementClick Here for 50% Discount
Stock AdvisorClick Here for 56% Discount
Real Estate WinnersClick Here for Current Promotion
Rule BreakersClick Here for 67% Discount
Everlasting StocksClick here for 67% Discount
Millionacres MogulsClick here for Current Promotion

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 Motley Fool analysts often say in their live broadcasts, Fool On!

Other Motley Fool Reviews:

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. After working many years in the website marketing industry, he decided to take on blogging full time and also get his finances headed in the right direction. Also check out his contributions to Equities.com and Benzinga.

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