Category: 5. Motley fool review

Most investors shouldn’t put their entire portfolio into the suggestions of any single stock picking service (It’s better to learn how to invest in stocks). However, this service has a good reputation and a strong track record of success among stock subscriptions.

In my opinion, the stocks in the current portfolio as of this writing are logical and sound. Ofcourse, there’s never any guarantee of future performance, but the advisor tends to do well overall.

If you’re up for a subscription service that costs $199 per year, the introductory deal is an excellent way to test the waters. With a lower $99 fee (for new members) for the first year and the 30-day refund policy, you can take a risk-free look behind the scenes to decide if it’s right for you.

We think Stock Advisor is an excellent service for newer investors and even more experienced investors who want to supplement their research. However, there are other services you can also consider.

Morningstar is one of the most popular competitors, and its analyst ratings are commonly referenced in the investing world. We still prefer The Motley Fool for independent stock picks, but Morningstar Premium has some excellent research. You can read our Morningstar vs. The Motley Fool article for a complete comparison.

Seeking Alpha is another popular alternative, but it uses more of a community-driven approach to research and content. It’s a solid community where you can begin researching different stock picks and recommendations. However, The Motley Fool has a more structured approach to delivering stock picks and is certainly less all over the map. Our Seeking Alpha vs. Motley Fool post highlights these differences in greater detail.

 Pros

• Weekly stock recommendations with expert analysis. Get a weekly stock pick from a market expert with a proven track record.
• Relatively affordable annual cost compared to some investment newsletters.  The service for new members is $99 for the first year and $199 for future years. That translates to $8.25 per month for the first year and $16.58 per month for future years.
• Text and email alerts give you quick information. Opt-in for alerts via email and text message to avoid missing an announcement.
• Active community. The Fool boards are incredibly active, and it’s an overall friendly, welcoming community of like-minded investors where you can easily spark up a conversation about different stocks or investing philosophies.

 Cons

• Upselling.  The site is heavy on sales and uses strong marketing language to try to sell you additional subscriptions.
• No stock recommendation is guaranteed. While The Motley Fool team has outperformed the markets overall, not every stock they suggest is a winner.
• Recommendations can move the market. Stock prices can temporarily spike after the newsletter comes out, which might lead you to buy at a higher price if you’re not careful.

Subscribers can contact The Motley Fool customer service reps at 877-629-2589 during business hours, Monday through Friday, 9 am to 5 pm EST. Subscribers also have the option to receive SMS stock alerts. You can also email the customer service team through the contact form on the company’s website.

With The Motley Fool’s premium service offerings, you can find out their latest recommendations, stock tips,  and the latest investing trends. When it comes to Motley Fool options and financial advice, The Motley Fool is designed to benefit investors and show them how to make the most out of every opportunity. 

The Motley Fool also has a free weekly newsletter. In it you will find investment news, stock ideas, and an analysis of current business trends.

Everlasting Stock is a monthly newsletter that includes two new stock pick recommendations each month. Tom specifically has a personal interest in these recommendations for the Everlasting Stock portfolio. The Everlasting Portfolio price is $2,999 per year, but they often run promos where the price can come down to as much as $1,599 per year.

The big difference between the Stock Advisor service and other services is performance. Stock Advisor and Ruler Breakers focus on stock picks, and both The Motley Fool services offer diversification, but stock picks have proven to be the star. Everlasting Portfolio is another The Motley Fool service, but it focuses more on the whole portfolio.

What’s nice about The Motley Fool is that it keeps up very well with the times. It’s launching a new crypto investing service, and it covers plenty of other sectors like energy, cloud computing, and AI.

Many services are more expensive than Stock Advisor, which is why we largely think Stock Advisor is a great starting point for new investors getting into the Fool’s ecosystem. As you learn more about investing or want to invest more, you can consider some of its more niche offerings.

The Motley Fool is best for people who are interested in semi-active trading. This is especially true if you are a brand new investor or want to learn more about picking individual stocks instead of exchange-traded funds (ETFs) or mutual funds, this service is an excellent resource with a reasonable price tag.

When I dropped in for the first time, I saw a list of stocks that I was most familiar with, and a few that were new to me. But I probably know more companies than the average person, since I’m a finance writer. Of the 11 stocks presented, I had actually considered two of the stocks myself at different times.

Expert investors who like finding their own stocks and passive investors who prefer to buy and hold diverse funds should skip this service. And The Motley Fool has other services that cater to different sectors and goals, like real estate investing or retirement income, that might be better fits.

The pushy advertising style at Motley Fool sometimes makes it feel like a used car lot, but overall, The Motley Fool is a safe and legitimate investing service. I’m a subscriber myself and have been very happy with the service overall. And The Fool has plenty of free resources and articles you can consume if you’re not ready to subscribe quite yet.

If you read all of the newsletter and investor education content, they even go so far as to admit that some of their investments won’t work out as planned. They proudly show off their winners but don’t hide their losers. I wouldn’t follow their portfolios exactly, but their recommendations are a good data point in building your own investment strategy around individual stocks.

Some have gone so far as to question: Is Motley Fool a pump and dump scheme? A pump and dump scheme is when someone attempts to boost the price of a stock based on false, misleading, and often exaggerated statements. 

The Motley Fool is definitely not a pump and dump scheme. It is a respected investor newsletter and they provide links to their research.  While its large subscriber base may influence stock prices immediately after announcements, leading to some opportunities for market manipulation, The Motley Fool itself operates on the up-and-up. If you want to learn more about pump and dump schemes, check out movies like Boiler Room or The Wolf of Wall Street.

The Motley Fool is worth it if you want hand-picked stock recommendations delivered to your inbox every month and a wealth of premium research. It’s a great resource for newer investors and even DIY investors who want a helping hand with research and stock picks.

As you can tell from this review, we are pretty positive about The Motley Fool. I’ve tried some competing newsletters and services that cost more than double. Motley Fool offers a good balance of interesting investment ideas at a reasonable rate, making it a good value for investors of all skill levels.

Beginner to intermediate investors can learn a lot from reading the details behind each stock pick. More experienced investors can use that information as fodder when making their own investment decisions.

If you just dollar-cost average your way into various index funds and ETFs, the Motley Fool might not be worth it since you’re not trading stocks as often. But again, its premium research is pretty solid.

I have experience managing part of a university endowment fund and seven-figure portfolios, and I have a few stocks from The Motley Fool in my own portfolio. Some are doing great. Some are doing so-so. But on average, they have done well enough to pay for the subscription cost and leave me with a nice little profit.

Why am I talking about myself here? Well, if someone like me with two finance degrees, portfolio management experience, and all day to sit on the computer thinking about money found value from The Motley Fool, you will likely find it worthwhile as well.

Most of The Motley Fool stock picks do make money. It has been estimated that roughly 80-90% of their stock picks are profitable. A very slim majority of their stock pick choices beat the S&P 500. 

The Motley Fool recommends several large and mid-cap stocks and very few small-cap stocks. Members are encouraged to fully invest in high-quality stocks over the long term. 

This long-term investing view is also the view we generally take at Investor Junkie, and it’s nice that The Motley Fool recommends high-quality companies that are generally long-term holds.