Sector Focus vs The Motley Fool 2024
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.Buying individual stocks can be terrifying. What happens if the stock crashes to zero? How can you maintain a diversified portfolio when choosing your own investments? Can your stock picks beat the market? Are you better off going with an index ETF?
Sector Focus is Better for: | The Motley Fool is Better for: |
Sectors | Individual Stocks |
Short Term Investments | Medium Term Investments |
Quantitative Analysis | Qualitative Analysis |
Sector Analysis | Simplified Monthly Picks |
Dividend or Growth Investing | Growth Stock Investing |
Sector Analysis | Stock Analysis |
Lower Price | Greater Value |
If you don’t have a master’s degree in business or finance, you can still benefit from investing in individual stocks. How do you choose the best ones? First, you need to decide where you will find your research. If you plan to use an investment research firm, you need to find out which ones best suit your needs.
Sector Focus is a relatively new entrant in an already crowded field. It’s a product of True Market Insiders, and it provides twice-monthly recommendations to power your stock trades.
The Motley Fool has been around since 1993. The Motley Fool’s most popular subscription, Stock Advisor, provides two monthly stock picks to add to your well-diversified portfolio.
Sector Focus and The Motley Fool provide similar services. Let’s look at some comparisons:
Annual Subscription Fees Basic Service | $79 | Stock Advisor $199 ($89 for the first year with Modest Money) |
Securities Analyzed | Sectors | Stocks |
Investing Approach | More Quantitative | More Qualitative |
Horizon Considered | < 5 years | > 5 years |
Best Use | >Higher Risk Takers | >Moderate Risk Takers |
Current Promotion | ||
Modest Money Overall Rating |
Annual Subscription Fees Basic Service | $79 |
Securities Analyzed | Sectors |
Investing Approach | More Quantitative |
Horizon Considered | < 5 years |
Best Use | >Higher Risk Takers |
Current Promotion | |
Modest Money Overall Rating |
Annual Subscription Fees Basic Service | Stock Advisor $199 ($89 for the first year with Modest Money) |
Securities Analyzed | Stocks |
Investing Approach | More Qualitative |
Horizon Considered | > 5 years |
Best Use | >Moderate Risk Takers |
Current Promotion | |
Modest Money Overall Rating |
Modest Money assesses that The Motley Fool’s better track record makes it a better choice for most investors.
Sector Focus vs The Motley Fool: Determining Factors?
This comparison review looked at investing styles and costs to see which service is better for you.
Factor 1: Investing Styles
Strategy matters when it comes to investing. Let’s look at how Sector Focus and The Motley Fool differ.
The Motley Fool’s Investment Style is Preferable to Sector Focus
- Sector Focus recommends the best sectors.
- The Motley Fool focuses on individual stocks.
- The Motley Fool’s strategy leads to greater diversification.
Sector Focus Investing Style
Sector Focus operates under the theory that you should focus on individual sectors instead of broad indices. According to lead investor/CEO Chris Rowe, this helps you take advantage of the secret “pockets of strength” hidden in the larger market.
Once you know the best sectors, Sector Focus further breaks it down to recommend the best stocks in their chosen sectors and sub-sectors, supposedly helping you attain better-than-market averages.
The Motley Fool Investing Style
Motley Fool’s Stock Advisor assumes that winning stocks are the product of well-managed companies and innovative products and services. With all its products, The Motley Fool encourages investors to buy at least 25 stocks and hold each stock for at least five years unless in receipt of a “sell recommendation.”
You can read more about how Stock Advisor works by reading this review.
The Motley Fool Has a Preferable Investing Style
While sector investing isn’t a terrible idea, Modest Money believes The Motley Fool’s strategy leads to greater stock diversification, preferable under modern portfolio theory.
Factor 2: Cost
Cost always matters when it comes to investment research. After all, you can easily spend $10,000 plus annually on stock research.
Fortunately, Sector Focus and The Motley Fool are both much cheaper.
Sector Focus is Cheaper than Stock Advisor
- Sector Focus costs $79 annually.
- Motley Fool’s Stock Advisor is $89/$199 annually but offers greater value.
- If cost were your only discriminator, then Sector Focus is cheaper, but not better.
Sector Focus Costs
Sector Focus costs $79 per year, one of the most competitive rates anywhere. You can read more about the product and sign up here.
The Motley Fool Costs
The Motley Fool’s signature subscription, Stock Advisor, costs $199 per year, but you can buy it here and only be charged $89 for the first year, a whopping 55% off the list price.
Sector Focus is Cheaper in Cost
For the first year, Sector Focus will be $10 cheaper than Stock Advisor, and after that, about $120 less expensive on an annual basis.
This seems like a no-brainer, but Stock Advisor only costs about $3.52 per week at its most expensive rate. Its expanded services and proven track record more than justify the cost of Stock Advisor.
Sector Focus vs The Motley Fool: The Bottom Line
Sector Focus is Better for: | The Motley Fool is Better for: |
Sectors | Individual Stocks |
Short Term Investments | Medium Term Investments |
Quantitative Analysis | Qualitative Analysis |
Sector Analysis | Simplified Monthly Picks |
Dividend or Growth Investing | Growth Stock Investing |
Sector Analysis | Stock Analysis |
Lower Price | Greater Value |
Sector investing is a good theory, but if you want the excitement of investing in individual stocks and being part of The Motley Fool’s robust investor community, then Motley Fool’s Stock Advisor is the better choice.
We at Modest Money have been consistently impressed with Stock Advisor and The Motley Fool’s other offerings. You can sign up here to take advantage of The Motley Fool’s excellent first-year pricing of only $89.
If Sector Focus sounds more interesting, you can read more about it and sign up here.
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