In a nutshell: The Motley Fool is an investing advice company that helps people make better stock picks.
Fool regularly beats the market and helps its members do the same - all at an affordable price.
In a nutshell: The Motley Fool is an stock advice company that helps people make better stock picks. If you want to buy individual stocks but feel overwhelmed, this is a great place to start.
Fool regularly beats the market and helps its members do the same - all at an affordable price. The Motley Fool Stock Advisor cost is just $99 for the first year.
$199/Year (Stock Advisor)
Average Total Returns
588% (As of 2/26/21)
Disclosure: This page may contain affiliate links. This means we earn a small commission (at no additional cost to you) if you purchase a product through our links.
Successful stock picking is no small feat. And even if you manage to do so, it can be time-consuming. In this review, we'll see if The Motley Fool Stock Advisor and its other services are up to the task.
The Motley Fool offers many premium services, including:
We will touch on several of these during the review, but the focus will be on Stock Advisor.
After all, Motley Fool Stock Advisor is the company's flagship product. That's because it helps you beat the market with its simple style of stock picking.
But does it work? Let's find out.
What Is The Motley Fool?
David & Tom Gardner founded The Motley Fool in 1993 along with Erik Rydholm.
The company calls Alexandria, VA its home.
The Gardner brothers still run things today. Thus, they continue to provide stock advice through articles, newsletters, and webinars.
The Motley Fool helps customers make better stock picks with its newsletter, Motley Fool podcast, YouTube videos, and more.
If you have ever done research on investing, you've likely heard of The Motley Fool. If you're like me, those things might be some good and some bad. At any rate, The company doesn't take itself too seriously (hence the name).
At The Motley Fool, we take our purpose seriously, but that doesn't mean we take ourselves too seriously.
It gets its name from a court jester in Shakespeare's As You Like It. Still, this Fool has had some serious success in the investing world.
In spite of this, Fool has had its ups and downs. Due to the dot-com bubble, the company lost about 80% of its staff. Nevertheless, The Motley Fool pressed on and is doing better than ever.
Then in 2002, shortly after the dot-com bust, it introduced Stock Advisor. Since then, the service has since become its most popular product.
Motley Fool Investment Style
The co-founders have seen some impressive results using this strategy. To illustrate, here are the returns each has recorded since Fool's founding (Updated 02-26-21):
Tom Gardner: +303.8%
David Gardner: +835.5%
S&P 500: +115.5%
The number you see above, 588%, is an average for all Stock Advisor recommendations since its inception. Meanwhile, the brothers' individual returns have been quite different, but they've seen great returns overall.
In order to select its investments, the Gardner brothers rate each stock by asking 25 questions. Each "no" answer moves the stock up the risk scale.
The higher up the stock moves, the more "crushable" the stock is, meaning the more likely it is the company will crush under pressure. Among its currently active stock recommendations, the highest risk rating is 18.
Here is the risk scale:
# of "No" Answers
Crushable Like a...
Really, Motley Fool Stock Advisor has a high success rate. These returns are rarely seen elsewhere. So, you aren't just buying into the hype.
In fact, Fool has updated these numbers over the past couple of months, and they have actually gone up. That is despite all the uncertainty in the market due to COVID-19 and everything else going on. Still, Motley Fool stock picks have remained strong.
Motley Fool Stock Screener
In order to help you find the best investments, there is also a Motley Fool stock screener. This tool is both a free stock screener as well as an investment community.
The stock screener allows you to find stocks using several filters, including asset class, sector, and volatility. You can also filter by "conviction," which reflects how their analysts feel about each stock.
Motley Fool CAPS allows you to research financial metrics on companies and also lets you see star ratings. These ratings are set using picks from individual Motley Fool members. Thus, you'll get insight from thousands of members to help you make better stock picks.
Motley Fool Stock Advisor
The Motley Fool Stock Advisor
Stock Picking and Analysis
$99 (First Year), Then $199
Education & Support
Newsletters, Articles, Reports, Community Forum
50% off First Year; 30-Day Money-Back Guarantee
Motley Fool Stock Advisor is a stock picking service that helps long-term investors earn great returns. Tom and David launched it in 2002 because it knew there was a need for a better stock picking service. And many "Foolish" investors even beat the market.
The result? Stock Advisor has been a huge success for the company and its members alike. And it's a great way to start investing in stocks.
Motley Fool stock picks are updated every Thursday. Hence, the Gardners can save you a ton of time.
It takes a while to understand the ins and outs of a company, which is why these updates are so helpful. And the Motley Fool doesn't just look at a few numbers here and there.
Instead, they do a deep dive into every company, performing an in-depth analysis. Only after a company meets their strict requirements do they decide to recommend it.
For new investors, this would be a huge undertaking. Therefore, a Stock Advisor subscription can be well worth it. Get The Motley Fool's Stock Advisor picks here.
The Motley Fool is not a service for day traders, nor is it one that focuses on investing in mutual funds or ETFs. Instead, its strategy centers around a buy-and-hold position on individual stocks.
In other words, you buy individual stocks and hold them for a long time. Ideally, you would hold them for at least 3-5 years. Hence, Stock Advisor helps you find the best stocks to buy for 2021.
And many of their choices are what investors would call "blue-chip" stocks. Specifically, Blue-chip stocks are from established companies with a history of strong returns.
As a result, you can expect established companies like Amazon, Apple, and Netflix.
Another popular recommendation, Shopify (SHOP), has increased over 2,000% in the past five years.
However, you may also see some stocks you wouldn't have expected. And that is where the real value is.
One of the first things you'll the first time you log in is Stocks to Buy Today. On this screen, you'll see all of the Motley Fool's latest stock picks. As the name implies, these are all of Fool's hottest stock picks at the moment.
You may notice that some of the stock picks above are blurred. We do this to protect the integrity of the program, but you can see below the real-world performance of my Motley Fool stock picks.
Motley Fool Stock Advisor members receive two new stock picks every month. While that may not sound like much, it's more than enough when you buy and hold.
In fact, your portfolio may remain static other than stocks they recommend selling. However, the performance is well worth it. And if one of the stock picks is no longer worth holding, Fool recommends selling that particular stock.
The Gardners always give an in-depth explanation for their sell recommendations as well. Therefore, you'll be able to understand their sell decisions.
Each time The Motley Fool recommends a stock, it provides an in-depth analysis along with the pick.
Consequently, member can understand the specific characteristics as well as potential market factors that led to the pick.
That's a nice perk to have because these analyses can help you understand the specific factors that make a stock worth buying.
Even if you aren't interested in picking winning stocks on your own, it is helpful to know the "why" and not just the "what."
Fool is very thorough in the research it provides on its Stock Advisor picks. Moreover, it uses various factors to show the strength of a stock.
But this is not to say every stock it picks is a winner. Hence, they recommend maintaining a well-balanced portfolio of at least 15 individual stocks.
That is to say that the more you diversify your stock portfolio, the more you can avoid large swings in its value. You might have a slightly lower return in the long run, but finding the right risk/reward balance is important.
Fool offers a variety of premium services besides Stock Advisor. For instance, Rule Breakers runs $299, but this service also has a $99 price for the first year.
Rule Breakers gives you access to David's picks. His picks rarely overlap with Tom's, and he focuses on high-growth stocks. Not only that, but David has a historical return better than 800%.
Nevertheless, Motley Fool Stock Advisor is a great starting point for new investors. But the two services can complement each other well, and both are available on Fool.com.
The Motley Fool also offers Rule Your Retirement, and this service focuses on ETFs rather than individual stocks. The cost is $77 for your first year and $149/year thereafter.
The Motley Fool offers a wide variety of products. Go here to see all of their products and pricing.
Motley Fool Stock Advisor Performance
I mentioned above that each of the co-founders has done quite well, far outpacing the market. And that continues into 2021, with each founder's picks performing extremely well. We'd be remiss if this review didn't include Motley Fool Stock Advisor's performance.
Although the economy was chaotic throughout 2020, Fool's picks remained strong. There was a significant dip in March, but things quickly rebounded.
Now, let's take a look at the Stock Advisor Performance screen to see how Motley Fool's picks are doing. First, you see once again how each Gardner brother has done compared to the market. Then you see a list of stocks, along with with the date and who recommended it.
Given how lucrative the stock picks can be, a Motley Fool Stock Advisor subscription is a great deal. After all, you only pay just over $16 per month. And that is even after the price increase. Equally important, almost all of the team's recent picks have positive returns. One is as high as 82.3%.
There is various other information on the screen, such as return for the stock since it was recommended. You'll also see the S&P 500 return during that same time period.
The whole list is sortable to help you find different stocks. And if you see something you like, you can add it to your favorites to purchase later.
Some notes about the 13 stocks shown above:
- All but one has a positive return.
- Average rate of return is 29.33% (including the one loser)
- The average S&P 500 return during the same time period is 9.21%.
- The average adjusted share price is $178.32. (Adjusted simply means adjusted for dividends and stock splits on the day of closing.)
- Average market cap is $41 billion. For reference, large cap is anything $10 billion and above, so these are not small, teetering companies.
Does This Help My Portfolio?
These are encouraging figures, and the real-world data proves it.
For instance, this graph shows the hypothetical growth of $10,000 in Fool's recommended stocks:
What we see in this graph is that an investment in the S&P 500 would have grown to nearly $50,000 in 18 years.
"5x growth? That's amazing!" you might think. And yes, that is quite good by most standards. Nevertheless, it doesn't hold a candle to the Motley Fool Stock Advisor service.
Using Motley Fool stock picks, your $10,000 investment would have grown to around $250,000 in just 18 years. Yes, that's 25x growth. Clearly, Stock Advisor has done amazingly vs. the S&P 500.
If you want to start investing in stocks, The Motley Fool is a great starting point.
Real-World Performance (+183.95%)
I haven't yet invested a huge amount of money, but I do maintain a portfolio of Stock Advisor stocks in M1 Finance. So, why haven't I invested more? Frankly, it's only because I don't quite have the cash flow for it.
In fact, I started investing in June, 2020, and here's what my returns look like:
The dollar amounts are small so far, but I feel pretty good about what I'm seeing from Stock Advisor. That being said, I hope to invest more in the future.
Stock Advisor Features
In addition to the obvious benefit of Fool's monthly stock picks, there are more features that will help you build a better portfolio. Let's take a look at some of them now.
Starter Stocks are exactly what they sound like. Thus, they are perfect for someone who is new and wants to start building a portfolio.
Fool compiles this list annually. It consists of stocks that are not only perfect for building out a new portfolio but can also strengthen existing ones.
Without a doubt, this list is quite useful. Sure, you see Stocks to Buy as you log in, but I couldn't tell if these were good for a new portfolio.
And one of the best things about Starter Stocks is these aren't just trendy stocks; they are stocks you can hold for the long term.
You'll find stocks like Amazon (ticker: AMZN), Apple (AAPL), and Netflix (NFLX) plus some you may not have considered.
News & Updates
As a member, you'll have access to frequent articles and their investment newsletter to keep you updated. And in a world like the financial market, that can be a big help.
While these updates include buy and sell recommendations, they also touch on other topics, such as:
- Best buys now
- Guidance changes
These are just some of the categories, but this gives you an idea of the type of content that is published regularly.
Generally speaking, you'll see at least one of these articles every 1-3 days. However, you may occasionally see multiple articles in one day.
By and large, the market can be chaotic and unpredictable, so it makes sense.
You may see an email with a product upsell here and there, but there are options to opt-out from each type of email if you'd rather not receive them.
You'll also gain access to a community forum that allows you to discuss a variety of topics with other members - from very basic to more advanced.
The forum has quite a bit of activity, too. As such, you'll be able to get a lot of your questions answered there.
Stock Advisor Reports
Stock Advisor reports are yet another way you can get an in-depth look at the inner workings of the stock market. In addition, some of these reports are quite detailed and packed with lots of information.
In addition to general stock market analysis, you'll also find reports from Tom & David. They include some of their most recent picks and why each of the stocks mentioned are a buy.
These reports come in article format but often highlight short-term trends in the financial industry. For example, one recent report is about a stock recommendation for the cannabis boom.
Other times, the reports provide forecasts and predictions and various stock tips. Join to get the latest Stock Advisor reports.
Stock Advisor allows you to maintain a list of favorite stocks. In particular, you can add stocks to your favorites a a few different ways, including:
- The Stocks to Buy Today list
- Searching within the My Favorites list
You will often receive emails with the latest buy alerts and sell alerts. Or, if you prefer, you can visit the website and see all the latest stock picks.
The site does let you favorite stocks and has a "buy" button, but you can't buy directly through The Motley Fool's website. Instead, you'll have to use your own brokerage account.
However, if you use Fidelity, it does have the option of linking your Fidelity account to make things slightly easier.
Motley Fool Rule Breakers
Motley Fool Rule Breakers is very similar to Stock Advisor. The major difference is that David Gardner picks all of the Rule Breakers stocks. Plus, this service specifically invests in high-growth stocks.
But just like with Stock Advisor, you'll get:
- Two new stock picks per month
- Best Buy Now
- Starter Stocks
- Community and investing resources
The service has a lower return than Stock Advisor so far, but it hasn't been around as long. As we all know, more time allows for more time to compound. That said, Tom has higher returns as part of Stock Advisor, so you can feel confident about this service.
Motley Fool Cost
One of the best things about Motley Fool Stock Advisor is just how affordable it is. And if you use the button below, the Motley Fool Stock Advisor cost is just $99 (50% off) for your first year.
After that, the annual fee goes up to $199 for a Motley Fool subscription. That is still incredibly cheap. Truly, this is a low-cost service that anyone can afford.
When I signed up, I saw the Motley Fool prices for new members:
I would not recommend signing up for one month for two reasons:
- Monthly cost. The most obvious reason is how much higher the monthly cost is. At $39/month, you would pay $468 per year.
- Money-back guarantee. Stock Advisor comes with a 30-day money-back guarantee. Therefore, you can ask for a full refund if you aren't satisfied.
The Motley Fool Rule Breakers cost is $299/year, but you can still sign up for $99 for the first year.
Motley Fool Customer Service
If you have any questions or concerns, you can contact Motley Fool customer service using the contact form on their website. There is also a Motley Fool contact number, (877) 629-2589.
There is also a Motley Fool forum where you can post less urgent questions.
How Does It Compare?
Another way this Motley Fool review can help is to compare it to other popular investment services. Let's see how it stacks up against the competition.
The Motley Fool Stock Advisor
$99 (first year), then $199/year
Two stock picks per month
Guided stock picks
$0.01 commission (shares over $1)
Wide range of stocks and ETFs
Action Alerts PLUS
Varies; lowest cost is $250/year
Guided stock picks
The Motley Fool vs. Zacks
If you're wondering which one is better, The Motley Fool vs. Zacks, there's no easy answer. Motley Fool Stock Advisor and Zacks Trade are both great services, but they cater to different trading styles.
On one hand, Stock Advisor is best for passive investors who want guidance on stock picks. On the other hand, Zacks Trade is best for active and semi-active traders.
Plus, Zacks is actually its own broker, meaning you can buy stocks on its platform. Stock Advisor doesn't have that convenience.
But given that Zacks is for more active traders, this makes sense. If you couldn't trade directly on the platform as an active trader, it would be too much back-and-forth.
Because Zacks Trade is a broker, it has its own trading interface. And its interface is technical in nature with lots of graphs and granular reports.
The Motley Fool's Stock Advisor has plenty of in-depth reports and articles, but they are meant to help inform your trades on other platforms. Plus, they help you understand why the Fools make the picks they do.
Both services are great, but which you should use depends on your preferred style of trading.
The Motley Fool vs. The Street
The Motley Fool and The Street have products that are somewhat comparable: Stock Advisor and Action Alerts PLUS.
We've already covered Stock Advisor. Action Alerts PLUS is The Street's subscription-based stock alerts service. Action Alerts PLUS is slightly more expensive than The Motley Fool; it has different prices depending on how much time you commit to, but the cheapest plans is $250/year.
If you haven't heard of The Street, it was founded by Jim Cramer. He's best known as the lively personality behind CNBC's "Mad Money."
As such, Action Alerts PLUS gives you insight into Cramer's stock portfolio and what he likes at the moment.
He does have a team as well, and a subscription gives you an insider's look at the whole portfolio constructing process.
The biggest difference between the two is the trading style. You may know Cramer for his "Sell! Sell! Sell!" proclamations.
Indeed, AAP stocks are sold more frequently. While Stock Advisor will tell you to sell occasionally, the team at The Motley Fool is a bit more measured in its recommendations.
Thus, which one is better depends upon the trading style you prefer and which is more suited to your personality.
The Motley Fool vs. Robo-Advisors
It's not a big surprise since many investors don't want to spend lots of time picking stocks. And with a robo-advisor, all they have to do is a answer a brief questionnaire, then deposit money regularly.
Investors don't have to worry about researching stocks or executing individual trades. Instead, the robo-advisor puts your money in a diverse set of ETFs with built-in diversification. That means it's less work, and returns are relatively stable.
So, what's the downside of robo-advisors? The most obvious one is returns. While your money should grow in the long run, the return will likely be lower than you'll see with Stock Advisor.
In addition, you can't be selective with your investments. Indeed, some investors don't like ETFs because they won't be able to avoid the "loser" stocks.
Plus, ETFs make it more difficult to invest in a socially-responsible way. While robo-advisors like Betterment are adding socially-responsible investments, you will always have less control with a robo-advisor.
Of course, Stock Advisor has its downsides, too. After all, investing in individual stocks can take longer, and can be more volatile, too.
Overall, deciding between Stock Advisor and a robo-advisor is about how much risk you can tolerate and the returns you want. Plus, not everyone is comfortable managing their own portfolio.
Motley Fool FAQ
People have a lot of questions about The Motley Fool, so I wanted to answer some of them. Here are some of the most common questions you ask:
Is The Motley Fool Legitimate?
The Motley Fool is 100% legit. They have been around since 1993 and are based in Alexandria, VA, just outside of DC. Moreover, they provide a quality service and the subscription isn't particularly expensive.
Plus, the founders have created a number of YouTube videos to help you get to know them better and better understand their mission. It offers a variety of services including Stock Advisor and Rule Breakers. It even has its own index funds, FOOLX and FOIIX. There is also a Motley Fool ETF, TMFC.
Above all, the company's goal is the help its members get better returns.
Is The Motley Fool a Pump and Dump?
The Motley Fool is not a pump-and-dump. Tom and David Gardner actually own Stock Advisor stocks—they aren't just trying to short these companies.
And they don't own these stocks for a short period of time. Instead, they buy and hold for the long term. If they ever do sell a particular stock, they will let you know via their sell alerts.
However, that only happens when a company starts to perform worse than expected. The overall strategy is to buy and hold stocks indefinitely.
So, no, The Motley Fool is not a pump-and-dump by any definition of the term.
Is the Motley Fool Worth it?
Yes, The Motley Fool is worth it. In fact, it is a reputable company that's been around almost 30 years. Indeed, The Motley Fool is worth the money. Not every pick will be a winner, but it's a great value and has more than paid off for thousands of members.
There is nothing dubious or suspicious about The Motley Fool. If you start with Stock Advisor, you pay a modest fee for superb stock picks. At the end of the day, isn't that what most of us want with a service like this?
Trustpilot gives The Motley Fool a 3.2/5. While that may not sound spectacular, the largest number of reviews are five stars (42% of the total). Here are some of the positive Motley Fool opinions you will find there:
I paid for have been following Stock Advisor recommendations for almost 2 years. I place an equal amount on each of the two monthly stock picks. The portfolio has considerably outperformed the S&P 500 and Nasdaq.
I've used them on and off for 20 years with good and great success. Those here who complain have not followed the guidance which suggests that all stock recommendations are to be held at least 3 years. The key is to buy the recommendations and let them grow to the sky while adding even more $ to the winners once identified.
As with many marketplace-style review sites, there are just a few two-four star reviews. The second-largest number are one-star reviews. But these one-star reviews tend to give what sound like minor complaints or are entirely suspect.
For example, a Motley Fool complaint says "In summary what you receive is slightly more information than from their emails and website." That seems to be this reviewer's biggest complaint.
However, Fool has a staff member providing in-depth, detailed responses to many of these reviews. That shows they don't take low ratings lightly and value each and every customer's input.
So while not every customer is completely satisfied, I see little reason to believe this service is a scam. In fact, it's one of the top stock picking services out there.
How Do I Cancel The Motley Fool?
Although we stand by this service as a great value and well worth the money, things do happen. If you ever want to cancel your Motley Fool membership, the best way is to call customer service at (844) 611-9905. Representatives are available to help between 9 a.m. and 4:30 p.m. eastern time.
You can also use the contact form on the Motley Fool website.
Ratings by Feature
Many people join simply for the great stock picks. While that is undoubtedly a nice perk, that's not the only thing Fool offers.
So, how do the features stack up?
The Motley Fool track record is excellent, and it has the stock picks to match. This is not to say every single one has been a winner, of course.
Indeed, it has certainly had some picks that haven't panned out so well. However some of their picks have also had 20,000%+ returns.
Unsurprisingly, then, the overall return has been strong. Its historical return fluctuates, but it tends to be around 400-500%.
One can hardly ask more for a service recommending stock picks.
Education & Community
Education & Community
The Motley Fool often publishes in-depth reports that keep you up to speed on market trends. Plus, you'll see the latest developments on individual stocks.
If a stock falls out of favor and should be liquidated, you'll be promptly informed of that, too.
Plus, there is an active community forum where you can get answers to all kinds of common questions and ask yours as well.
New members can sign up for both Stock Advisor and Rule Breakers for just $99 each for the first year. That means the Motley Fool cost for each service is just $8.25 per month your first year.
And this is not to say you have to sign up for both. You can sign up for one or the other.
Given the stellar returns both brothers have seen, this is a great way to access their picks.
The Motley Fool's most popular service, Stock Advisor, is just $99 for the first year. After that, a Motley Fool Stock Advisor subscription will cost $199. Its other popular stock recommendation service, Rule Breakers, is $99, then $299.
It's not uncommon for services recommending individual stocks to cost several times more than this. In fact, day trading services can have monthly costs that look similar to Fool's annual price.
How Do I Sign Up?
Signing up is incredibly easy. All you have to do is head over to the Motley Fool premium services section, select the service you want, and that's pretty much it.
Once you enter your name & billing information and select monthly or annual billing (note: annual is a much better deal), you're be all set.
Note that a credit card number is required when signing up.
As you can see, getting signed up is very simple. It only takes a couple of minutes.
Is The Motley Fool Right for You?
The Motley Fool is a great value and has the data to show it's been largely successful. Although there have been a few hiccups along the way, the company continues to see long-term success.
After all, the numbers don't lie.
The founders have had a combined 4-500% historical return (compared to ~100% for the S&P in the same time period). That alone shows just how success they have been.
Of course, you should be aware of the potential risks - individual stocks can be more volatile than an index fund or mutual fund.
You should certainly do your own research before you start buying individual stocks. But if you're looking for an easy way to find some stock ideas, this is a great place to start.
Building a portfolio using Fool's recommendations can put you on the path to investing success. Thus, a Motley Fool subscription is a deal you won't find anywhere else.
Ready to get started?