Motley Fool has a consistent track record in providing stock picks with amazing returns in the long term. The company has two choices, Motley Fool Rule Breakers and Stock Advisor. Both services will provide you with stock recommendations, helpful tools and guides, instant notifications and alerts, and many more features.
In this stock picker review, we compare Motley Fool Rule Breakers vs Stock Advisor and help you choose the ideal one for your portfolio.
In a nutshell, here is a sneak peak on Rule Breakers vs. Stock Advisor:
| Rule Breakers | Stock Advisor | |
| Subscription Costs | $299 | $199 ($79 for the first year) |
| Investment Approach | Emphasises high-growth, innovative companies. | Focuses on growth and value stocks. |
| Target Audience | Targeted towards investors seeking high-risk, high-reward opportunities. | Targeted towards investors balancing growth and stability. |
| Portfolio Diversification | Stocks are mostly clustered in the emerging technology sectors. | A diversified portfolio of high-performing stocks. |
| Securities Analysed | Over 200 high-growth stocks. | Over 300 stocks and ETFs. |
| Track Record | 200+% returns since 2005. | 400+% returns since 2002. |
What is Motley Fool Rule Breakers?
If you’re wondering what to pick between these two newsletters, let’s go ahead and start with a Motley Fool Rule Breakers review.
Motley Fool Rule Breakers is a stock picking service made by Motley Fool in 2004. It is the second newsletter from the Motley Fool, and although it didn’t perform well at first, it is now known for an amazing market performance that has doubled the market averages.
Rule Breakers recommends high-growth stocks in high-growth industries to its subscribers. They don’t focus on the companies that are currently popular, but they identify stocks from emerging industries that would offer long-term growth.
For instance, Rule Breakers was one of the first stock-picking services to recommend emerging industries like blockchain technology, artificial intelligence, and robotics. They also recommend growth stocks rather than dividend stocks.
Rule Breakers has different plans from Motley Fool, including Energy Insider, Blast Off, Biotech Breakthroughs, Next-Gen Supercycle, Trend-Spotter, Marijuana Masters, Augmented Reality and Beyond, Artificial Intelligence, Future of Entertainment and Fintech Fortunes, each for $1,999 per year.
Features of Motley Fool Rule Breakers
You might be wondering what you get if you sign up with Motley Fool Rule Breakers. The platform is easy to use from the Motley Fool Rule Breakers login stage and fully transparent with its stock recommendations, whether it closed with a gain or a loss. You can also learn more about why the stock was chosen by clicking on the logo on the website.
Monthly Stock Picks
On the second Thursday and fourth Thursday of every month, Motley Fool Rule Breakers provides subscribers with a new stock recommendation. This makes it two monthly stock picks that you receive. Their stock picks are high-growth stocks with moderate-high risk and high volatility.
Best Buys Now for New Members
New members will receive five stocks on the Best Buys Now list, which is sent as an email every third Thursday of the month. This gives you a list of the top 5 stocks that you should recommend adding to your portfolio.
Round Table
Another highlight is the Round Table, which is sent to subscribers every first Thursday of the month. It allows you to start your month with a discussion of the overall market outlook and recent stock picks. If you missed any of their previous stock picks, then the Round Table can help you catch up.
Alerts and Notifications
The Rule Breakers has a feature that will send notifications whenever you should buy and sell a particular stock. It’s helpful to receive notifications when you add a stock to your favourites. It will send an alert whenever there’s any news of the stock.
Rule Breaker Investing Podcast
The platform also offers a podcast called the Rule Breaker Investing, which is hosted by David Garner, the co-founder of The Motley Fool. The Rule Breakers podcast features stories from members of The Motley Fool on how they achieved financial freedom and covers topics like frugality, mistakes you can make, and more. The podcast is weekly and involves David, a successful stock picker, sharing how you can profit with his Rule Breaker Investing principles. He also responds to tweets posted on the podcast’s Twitter page, so you can ask a question before getting started.
Other Resources and Community
On the Rule Breakers platform, you can view stocks in terms of their ratings and how they measure risks. There are also different resources that you can read and learn from to expand your knowledge. Plus, you can join a community of other investors interested in high-growth stocks from emerging industries. The company-based discussion boards, available to the Motley Fool premium subscribers, give you access to a massive community. Also, the About Rule Breakers page offers all you need to know about how they pick their stocks and their risk ratings. All this information makes it easier to make informed investment decisions.
How Does Motley Fool Rule Breakers Pick the Stocks?
The Rule Breakers Motley Fool carefully picks its stock recommendations based on some factors. They don’t select stocks for swing trade day trade or high-dividend slow-growing stocks. Instead, all their stocks are from high-growth industries. The stock must:
- Be a top dog and a first mover in a significant, emerging industry.
- Show a strong past price appreciation.
- Offer a strong consumer appeal.
- Have a sustainable advantage due to business momentum, visionary leadership, patent protection, or inept competitors.
- Have a good management team and strong backing.
Motley Fool Rule Breakers Track Record
The Motley Fool Rule Breakers track record has shown pretty great performance over the years. Their stocks have a great track record, especially when you hold them for a longer time. From 2016 to 2022, Rule Breakers has picked 168 stock picks, with an average return of 122%, outperforming the 70% of the S&P 500 list. Out of those 168, 43 have doubled.
In general, the average recommendations have returned over 232% since the inception of Rule Breakers. One of their best performers is UBER, which was listed on July 14, 2022. It is now up 199%. Also, DDOG, which they picked on February 7, 2019, increased to 211% since then.
They also recommended MercadoLibre, which increased by 8,894%, Shopify by 2,673% and Tesla by 10,105%. All of these were high-growth stocks from fast-growing industries, especially in technology, e-commerce, and AI. Some of their recent stock picks include ANET, UBER, LYV, CRWD, SG, PUBM, IOT, and CAVA.
Rule Breakers Risk Assessment
Before you sign up for the Motley Fool annual subscription for Rule Breakers, it’s important to keep the risks in mind. Rule Breakers stocks are more volatile since they focus on growth companies and emerging industries. This means that their stocks don’t always perform as expected, and although there is a good potential for growth, there’s also a potential for loss.
When Rule Breakers gets it right, they offer impressive stocks that skyrocket in their value. But on the other hand, when they get it wrong, they really do, with some of them losing as low as 60% to 80%. The worst stock pick percentage return from Rule Breakers is also worse than that from Stock Advisor. An average of 5 out of their 24 recommended stocks in a year don’t perform as expected.
Motley Fool Rule Breakers
Before you subscribe to the Rule Breakers, it’s a good idea to keep the following pros and cons in mind.
- Pros
- Focuses on innovative, high-growth companies with potential for success.
- Their focus on groundbreaking companies in emerging industries leads to higher returns.
- They offer monthly stock picks and recaps of previous picks every month.
- Offers educational resources, including the Rule Breakers podcast.
- Their stocks recommend a long-term investment approach.
- All recommended stocks will diversify your portfolio across sectors.
- Cons
- Recommended stocks come with higher risk and volatility.
- Higher subscription fee than Stock Advisor.
- Their stocks are usually from new companies that have limited performance data.
How Does It Compare to Motley Fool Stock Advisor
When looking at the Motley Fool Stock Advisor vs Rule Breakers comparison, you might be wondering how the Stock Advisor performs. This Motley Fool Stock Advisor review will answer more in depth questions, while here we will cover the basics.
Motley Fool Stock Advisor is the flagship stock-picking service from the company, established in 2002. When comparing the Stock Advisor vs Rule Breakers and other Motley offerings, you will see that the Motley Fool has an incredible track record of beating the S&P 500 by four times since it started.
Unlike Rule Breakers, which recommends high-volatility and emerging stocks, Stock Advisor recommends stocks that are not volatile and from well-known companies. Their stocks are ideal for holding long-term, for at least five years. Even when the stocks are not performing well, Stock Advisor does not recommend selling until the five-year term.
Stock Advisor Motley Fool recommends holding at least 25 different stocks from diverse industries. It also provides you with starter stocks, which are ideal for beginners who want to get started with stocks.
Features of Motley Fool Stock Advisor
When thinking of subscribing based on Stock Advisor reviews, it’s also important to know the features they offer. Similar to Rule Breakers, you get monthly stock picks, best buys now, instant alerts, and resources.
Monthly Stock Picks
Stock Advisor also offers its subscribers two stock picks every month. These stocks are from known companies and are not as volatile as Rule Breakers picks. The companies are more stable and well-established. You also get access to an entire library of previous stock recommendations.
Starter Stocks
Beginners will get Starter Stocks from The Motley Fool, which offers stock picks that would lay the foundation for your portfolio. It’s suitable for beginners who are unsure of what to add to their portfolio for the first time.
Best Buys Now
Each month, subscribers of Stock Advisor get 10 Best Buy Now stocks. These are their top ten-ranking stock picks that you are recommended to invest in. If you missed their previous recommendations, this feature is particularly helpful.
Other Tools
Other tools, which you also get as a subscriber of Motley Fool Rule Breakers, include instant alerts, resources, and community. There is also a stock screener that makes it easy to find stocks by filtering them based on their asset class, dividend yield, volatility, and sector. There is also a message board that allows you to ask questions to other members and answer others. Plus, the Motley Fool offers live chat customer service, a contact form, and toll-free numbers.
How the Stock Advisor Picks Stocks
When looking at Motley Fool Stock Advisor vs Rule Breakers, it’s important to note that they differ based on how they pick stocks. This is expected since both stock recommendation services offer different types. Stock Advisor features two investing teams, which are Team Rule Breakers and Team Everlasting.
The same way Rule Breakers picks stocks is the same way Team Rule Breakers works, and this is factored in the stocks eventually recommended by the Stock Advisor. As for Team Everlasting, they consider:
- High-quality companies with a sustained potential to keep growing and beating the overall market in the long term.
- Companies with strong corporate culture.
- Cash-rich and low-debt companies.
- Founder-led companies.
- Companies with a strong bond with their customers allow them to command significant pricing power and have identifiable, proprietary advantages.
Performance of Motley Fool Stock Advisor
The performance of Stock Advisor is important when comparing it to Rule Breakers. While both Rule Breakers vs Stock Advisor have performed well since their inception, it’s important to note that Stock Advisors has outperformed the S&P 500 by four times, with a return of 463% since 2002.
Stock Advisor has recommended 512 stocks since it was launched in 2002, 179 of which have doubled or more. 131 of them have tripled, while 92 have quadrupled. They mostly recommend large and mid-cap stocks, with an average return of 627%. They also offer blue-chip stocks and growth stocks.
Some of their best-performing stocks include AMZN, TDG, DIS, TSLA, BKNG, NVDA, SHOP, ADBE, TTD, and CTAS. Stock Advisor is known for recommending stocks before any other service had trust in them. For instance, Amazon, which was first recommended in 2004. Also, Walt Disney and Netflix are top picks.
Motley Fool Stock Advisor
Before you get started with Stock Advisor, it’s important to keep the following pros and cons in mind.
- Pros
- Monthly stock recommendations, including previous stock picks.
- 10 Best Buys Now is offered every month.
- Round-the-clock stock monitoring with instant alerts.
- Reliable track record of high-performing stocks.
- Offers extra resources, tools, and message boards.
- Customer service is reliable.
- Cons
- Annoying upsells that affect your experience.
- Some of their stock picks are expensive.
- Generalised stock recommendations.
Differences Between Rule Breakers and Stock Advisor
When comparing Motley Fool Rule Breakers vs Stock Advisor, it’s important to note that they have some similarities. They offer two monthly stock picks and recommendations, Best Buys Now and Previous Stocks. Also, they offer detailed information on each stock so you can understand the decision-making process behind each. Plus, their stock picks consistently beat the performance.
Although Motley Fool Rule Breakers and Stock Advisor have great picks with impressive performance, keep in mind that Rule Breakers might have picked high-performing stocks, but they also picked some big losers. This is because their recommended stocks are highly volatile. So, you never know when you miss out on any of their best picks. On the other hand, Stock Advisor offers well-known stocks with less volatility and very few losing picks.
Cost
One of the main differences when comparing Motley Fool Stock Advisor vs Rule Breakers is the cost. Stock Advisor is cheaper than Rule Breakers and features a cheaper price for the first year. If you’re new to stock pickers and don’t want to spend a lot of money, you can consider the Stock Advisor since it has an introductory price discount. Keep in mind that there are frequent The Motley Fool promos and discounts on Rule Breakers plans.
Performance
Both Stock Advisor and Rule Breakers have outperformed the market, with the former achieving four times the market and the latter achieving two times. Stock Advisor has a better overall track record than Rule Breakers since its stocks are more stable and less volatile. With Stock Advisor, you won’t see gains by investing short-term, as it focuses on a five-year investment strategy. Rule Breakers’ performance might not be as good as Stock Advisor’s, but it’s a great place to get high-growth stocks. It also points out the red flags and green flags of stock picks so you understand the risks.
Investment Approach
As for their strategy, Stock Advisor and Rule Breakers have different approaches. Stock Advisor has a higher risk-reward ratio and picks leading companies across all sectors. On the other hand, Rule Breakers offers high-risk and high-growth stocks. So, you should consider which of the stock recommendations align with your investment goals. Stock Advisor does not have a lot of technology companies but mature companies with lower volatility. On the other hand, Rule Breakers focuses on more volatile stocks, which identifies companies with a high growth potential.
User Experience
You also have to consider the user experience and support when choosing between Rule Breakers vs Stock Advisor. The two stock picking services have similar layouts and designs, with the same educational materials and customer service team. Both also have a robust community of investors that you can join, ask questions, and communicate with. Beginners can easily navigate the platforms.
Target Audience
Motley Fool Rule Breakers and Stock Advisor can both help investors make informed decisions to find the right picks for their needs. Stock Advisor is ideal for beginner and immediate investors who want to make long-term investments, while Rule Breakers is suited for experienced investors who can handle risks and want to make investments in emerging industries.
Which Motley Fool Stock Picking Service is Ideal For You?
If you’re trying to pick between Stock Advisor and Rule Breakers Fool, you need to consider what they are ideal for. If you’re actively trading stocks, you should check between the two subscription services. Both are popular options that can help you build a diversified stock portfolio. If anything, you can simply follow them blindly and make your investments. Here’s a look at who the two stock-picking services are good for.
| Stock Advisor | Rule Breakers |
| This is ideal for beginners and immediate investors. | This is suitable for experienced investors. |
| It’s great for building your portfolio. | It’s more suited for investing in strong consumer appeal stocks. |
| Moderate-risk investing with long-term focus. | High-risk investing. |
| Offers stocks from a wide sector. | Focused on growth stocks from emerging industries. |
| Conventional approach. | Unconventional approach. |
| Focuses on stocks that beat market returns in 5 years. | Focuses on stocks that stand out. |
| Investors with a smaller budget. | Investors with a higher budget are interested in new technologies. |
How to Get Started With Rule Breakers and Stock Advisor
If you’ve decided to use either Motley Fool Rule Breakers or Stock Advisor, you can follow a simple process to get started. Since both are in the Motley Fool universe, their process to sign up is simple.
To sign up for the Motley Fool annual subscription, you first navigate to the website. From there, you can click on the option that says, Our Services. This lists out all the services offered by Motley Fool. You can then select Sign Up for either Rule Breakers or Stock Advisor.
Another option is Epic Bundle, which offers its four main stock picking services, which include Stock Advisor, Rule Breakers, Everlasting Stock, and Real Estate Winners. It offers over six new stock recommendations from all the services. But it costs $499 per year. It’s a better choice for experienced investors.
Online Reviews of Rule Breakers and Stock Advisor
It’s a good idea to take a closer look at the Motley Fool reviews 2015 to date before you sign up for either Rule Breakers or Stock Advisor. There are no specific Motley Fool Rule Breakers reviews, or Stock Advisor reviews online, as most platforms lump them all under Motley Fool.
On TrustPilot, The Motley Fool has received a 3.6 rating from 8,108 reviews. It is also a verified company. Most people have praised the platform for recommending good stocks with long-term performance. In terms of complaints, they are usually based on marketing emails, upsells, and glitches with the website. Most reviewers noted that they got started with either Stock Advisor or Rule Breakers, which are seen as the basics.
As for Sitejabber, The Motley Fool has 3.06 stars from 325 reviews. Most of the positive reviews praise the company for its investment advice and long-term approach. There are also a lot of mentions of Rule Breakers. Most users recommend getting started with Stock Advisor and Rule Breakers.
Rule Breakers vs Stock Advisor: Which Is The Best Choice?
With all that has been said about Rule Breakers vs Stock Advisor, you might be wondering which one you should choose.
Stock Advisor is known as the first and best stock-picking subscription service from the Motley Fool. The Stock Advisor checks every sector and provides you with investment opportunities, all with balanced risk-reward ratios. If you’re thinking of buying stocks from different sectors, you can consider Stock Advisor.
Aside from the stock picks, Stock Advisor offers an impressive wealth of resources on diverse investing topics. All of these, plus the messaging board open to The Motley Fool premium subscribers, give beginner investors all the tools they need. Stock Advisor has a low annual price, and it gets lower with the introductory price discount.
This might make you wonder, is Motley Fool Rule Breakers worth it?Rule Breakers has a solid footing in the Motley Fool universe. With this stock-picking service, you can easily pick high-growth stocks in fast-growing, emerging industries that will eventually become industry leaders.
When using Rule Breakers for your investment strategy, you should be prepared to assume more risk. But you might also get the next best stock. If you’re thinking of using Rule Breaker, you should use Starter Stocks to balance or diversify your portfolio. It’s suitable for advanced investors or as an add-on to Stock Advisor.
In conclusion, the Stock Advisor is a better option for most investors. If you can handle the volatility of Rule Breakers, then you can consider this plan for massive returns in the future. Finally, if you can afford both subscriptions, that’s a good idea, too.
FAQ
Motley Fool Rule Breakers is worth the money for those interested in high-risk and high-volatility stocks from emerging industries. The subscription offers good value for your money and is usually right, with an average return of over 200% since 2005.
The Motley Fool 5 pullback stocks are stocks recommended per month for a market pullback by the company. For instance, in October 2023, the stocks on the list were Amazon.com, Berkshire Hathaway, Tesla, Apple and Lululemon Athletica.
The Motley Fool Rule Your Retirement is a yearly subscription that helps subscribers build their wealth for retirement. It offers guidance on retirement planning, personal finance, estate planning, and insurance.
You can access a Motley Fool live stream by becoming a premium member. They alert you on live streaming videos during market hours.
There is a Motley Fool Rule Breakers discountof $99 for the first year. The one-year membership also comes with a 30-day refund period.
You can get the Motley Fools 1 Stock report for $100. If you want to get only one stock pick, you can choose one from Stock Advisor, Rule Breakers, or the overall best.