Motley Fool Stock Advisor Performance: Does It Really Outperform The S&P?

Jeremy BiberdorfBy: Jeremy Biberdorf

March 14, 2024March 14, 2024

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A key trait of any successful investor is the ability to access and utilize timely, accurate news, and well-researched stock recommendations. This is where the Motley Fool Stock Advisor, the flagship service from the renowned Motley Fool platform, comes into play.

This service stands out by providing members with two top stock picks each month, based on meticulous market analysis. But the benefits don’t stop there; members also receive a list of “best buys” and can dive into a treasure trove of past recommendations.

The Motley Fool has established itself as a leading authority in stock investment, supported by thorough research to back its choices. While the platform offers a variety of services, Stock Advisor remains its cornerstone, offering more than just monthly picks. It’s known for selecting a mix of growth and blue-chip stocks, aiming for high potential long-term returns across various industries.

This diversification is part of what contributes to the Motley Fool Stock Advisor performance, helping members not just to grow their portfolios but also to manage risk more effectively.

Investing in the Stock Advisor service could be a move towards saving time while attempting to increase earnings, thanks to its research-backed selections.

For those weighing the cost against potential benefits, it’s worth considering how these insights could enhance your investment approach and portfolio diversity.

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Motley Fool Stock Advisor Performance

Diving straight into what matters most, the performance of Motley Fool Stock Advisor really stands out. If you’re contemplating joining a stock picking service, you’d naturally want one with a solid track record. Since its inception in 2002, this service hasn’t disappointed, boasting an impressive average return of 644%, which notably eclipses the S&P 500’s 149% in the same period.

Furthermore, the service’s credibility is underscored by its substantial membership—over half a million strong. This large community reflects its effectiveness and popularity among investors. Feedback from both Motley Fool and its numerous users indicates that the stock picks provided by the service turn profitable approximately 60% to 70% of the time, showcasing a high rate of success in their recommendations.

This blend of strong historical performance and a large, satisfied user base solidifies the value and reliability of the Motley Fool Stock Advisor.

How Does Motley Fool Stock Advisor Perform So Well?

The success behind Motley Fool Stock Advisor’s performance can be attributed to its strategic selection of growth and blue-chip stocks, aimed at delivering high long-term returns. This approach ensures a diverse array of companies and industries are covered, steering clear of volatile penny stocks.

For those interested in tailoring their searches, the service offers a Stock Screener, allowing users to filter through various stock picks based on different criteria.

Furthermore, Motley Fool Stock Advisor is committed to aiding individual investors in achieving their financial objectives while aligning with their risk tolerance. Each month, members are provided with two new stock picks, accompanied by in-depth reports that dissect the investment potential of each suggestion. Additionally, the service highlights five ‘Best Buys’ each month, presenting the current top picks from their list.

Particularly helpful for novices is the ‘Starter Stocks’ list, which is essentially a collection of past recommendations with solid performance histories, constantly updated to reflect new analyses and market conditions.

Beyond just stock picks, the subscription includes valuable tools such as investment-focused email newsletters, a stock watchlist, and a scorecard to track your investments’ progress, all designed to support investors in making informed decisions.

Motley Fool Stock Advisor Pros & Cons

The Motley Fool Stock Advisor comes with its set of advantages and drawbacks, which I’ve taken the time to consider. Here’s what I’ve found:

Pros:

  • The service provides an archive of closed recommendations, allowing for transparency and learning.
  • Members have access to premium content, which can enhance understanding and decision-making.
  • Historically, the service has shown strong performance, generally outpacing the average returns of the S&P 500, which is quite reassuring.
  • I’ve found that their customer support is top-notch, ready to assist whenever needed.
  • The platform is welcoming for beginners, with a user-friendly interface that makes navigation straightforward.
  • Monthly stock recommendations keep the content fresh and informative.

Cons:

  • It’s important to remember that not every recommended stock is going to increase in value.
  • All members receive the same stock picks at the same time, which could potentially dilute the effectiveness of a recommendation.
  • There’s a possibility of receiving additional sales pitches for other services, which might be unwelcome or distracting for some users.

Final Thoughts

In summary, the Motley Fool Stock Advisor service stands out for providing individual investors with monthly stock picks, focusing on high-quality stocks with the potential for long-term returns. The service supports both new and experienced investors, offering educational resources, exceptional customer service, and a user-friendly platform.

By including features like favorite stocks lists and a comprehensive stock portfolio analysis, it aids in informed decision-making. However, it’s key to note that not all stock ideas will lead to profit and everyone gets the same picks, which could affect stock prices.

Despite these cons, the overall performance, particularly the wide margin by which it outperforms the S&P 500, underscores its value. If you’re looking to enhance your investment strategy, Click Here to explore more about the Motley Fool Stock Advisor.

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Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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