Investing in individual stocks seems easy, and it’s pretty lucrative, but it all depends on your stock picks. This is time-consuming and difficult, especially since it requires a lot of knowledge of the stock market – but that’s where Motley Fool steps in. We’ve done extensive research and have tested this service ourselves, to come up with the ultimate Motley Fool Stock Advisor review, to answer all your questions.
The Motley Fool Stock Advisor, is a subscription-based service that gives you stock picks and investments without hard work. They give recommendations, and you can add or remove assets from your portfolio. But before you rush to sign up, you might be asking, is Motley Fool worth it?
Let’s find out.
What is the Motley Fool Stock Advisor in a Nutshell?
To start our Motley Fool Stock Advisor review, let’s take a closer look at the service. Being a major investing platform with over a million investors, Stock Advisor is a premium subscription service provided by The Motley Fool and is the flagship service of The Motley Fool.
Stock Advisor was founded in February 2002 and is known for providing long-term stocks that you can hold for up to five years. It is a reliable company; in case you’re wondering, is the Motley Fool a scam? Their services are unique because of the Starter Stocks feature, which gives beginners recommendations to build their portfolio.
Members at the Stock Advisor receive two stock picks per month, an in-depth analysis of why they were chosen and why you should invest, active stock recommendations from the past, and other resources. Keep in mind that Stock Advisor is simply a recommendation service, so it would not manage your portfolio for you.
The Stock Advisor costs $199 per year, and new members are eligible for an intro price and specific discounts. The recommendation service has a 65%-win rate of profitable stock picks, which contextually answers the concern of whether the Motley Fool is worth it. Aside from the Stock Advisor, other Motley Fool services include Rule Breakers, Everlasting Stocks, and Real Estate Winners.
How Does Motley Fool Pick Stocks?
Motley Fool Stock Advisor recommends stocks after its analysts from Team Rule Breakers and Team Everlasting carry out their research. While they have different selection criteria, a common factor is that they focus on stocks that would outperform the market over the long term.
The criteria for Team Rule Breakers are:
- First-mover companies in emerging and important industries.
- Significant past increases in share prices.
- Companies with brand awareness and strong customer appeal.
- Businesses with sustainable competitive advantages and reliable management teams.
- Overvalued stocks are based on mainstream financial sources.
As for Team Everlasting, here are the factors that the analysts consider:
- Founder-led companies.
- Companies with sustained potential to beat the market in the long term.
- Businesses with a solid corporate culture.
- Cash-rich, low-debt companies.
- Companies that build a strong bond with their customers through substantial pricing power and easy-to-identify market advantages.
When the Stock Advisor gives your monthly recommendation, the analysis includes why those stocks were chosen. This is especially useful in understanding why you should invest.
Main Features of Motley Fool Stock Advisor
Next in our Motley Fool subscription review is the different features and elements of the platform. There are different perks of being a subscriber to the Stock Advisor.
Stock Recommendations
The main point of subscribing to the Motley Fools newsletter for Stock Advisor is to get stock picks. Every month, the service offers two stock picks that were chosen directly by their team of analysts. The report will include the company’s risk profile, reasons why they chose the stock, and round-the-clock stock monitoring. Once you receive the recommendation, it’s up to you to decide whether to invest.
Starter Stocks
New or experienced investors that first sign up for Motley Fool Stock Advisor receive a list of foundational stock recommendations. This is a great option if you’re new to stocks and still setting up your investment strategy. Also, they update the list every month, so you can rest assured that you’re not getting last year’s list.
Top 10 Rankings
Another feature of the Stock Advisor is the top 10 rankings, which gives you 10 of the best stock pics that are chosen out of over 300 stocks. It is based on the current market opportunities and will be updated regularly. You only get this ranking when you pay; luckily, the Motley Fool Stock Advisor cost is reasonable.
Community and Educational Resources
Investing is not a journey that you do alone. This service offers a wide range of resources that you need to improve your portfolio. Aside from blogs and guides, you get access to news articles, allowing you to keep up with new trends. Members have access to previous stock picks, even those from years ago.
Instant Alerts
Another feature that makes the Motley Fool Stock Advisor worth it is the instant alerts. The platform allows you to select your favourite stocks, and whenever there is a price fluctuation or an opportunity to buy or sell, you get an instant alert. If there’s a stock you’re watching, consider using this feature.
Stock Screener
The Stock Advisor features a stock screener, which is a useful tool for those searching for stocks based on particular factors. You can search for a particular stock or sort different stocks based on their asset class, volatility, dividend yield, sector, and more. It’s easy to use and intuitive.
Message Boards
Another feature to look out for is the message boards, which are available on Stock Advisor. This message board is specifically for members of the platform, so you can ask questions, give opinions, or get information from other members. The best part is everyone on the platform has the same access to information and resources as you, putting you all on the same page.
Live Chat Customer Service
If you are having trouble using the subscription service, Motley Fool offers reliable customer service. You can send your details through the contact form and wait for a reply or call their toll-free numbers. Plus, there is a help centre with frequently asked questions.
Motley Fool Stock Advisor Track Record
The Motley Fool track record is pretty impressive, and you can say the same for Stock Advisor. The stock recommendation service has a 65%-win rate on profitable stock picks. Compared to the S&P 500, which has a return of 123%, the Stock Advisor has returned 463% since it was founded in 2002. It has beaten the S&P 500 by a factor of 3.9 since it was founded.
Since the service was launched in 2002, it has recommended 512 stocks. 92 of these stocks have quadrupled or more, while 131 have tripled or more. Then, 179 of the picks have doubled or more. The Motley Fool has sold 228 of all their picks. The Motley Fool track record features large and mid-cap stocks and only a few small-cap stocks. It encourages all members to fully invest in high-quality stocks.
Another point that would answer yes to the question ‘is the Motley Fool reliable’ is that they picked some stocks before most services did. These stocks ended up with impressive growth trends. The older sticks recommended by the Stock Advisor from five years ago have average returns of 627%.
The stocks included in the Motley Fool success rate include AMZN, TDG, DIS, TSLA, BKNG, NVDA, SHOP, ADBE, TTD, CTAS, and more. Since the platform recommends long-term investment, they saw the value of some stocks before others did. By 2021 and 2022, these stocks offered impressive returns to those who invested.
The types of stocks that the Stock Advisor recommends are usually blue-chip stocks and growth stocks with great potential for long-term returns. You will be recommended stocks from diverse companies and industries. As for the stock prices, they differ, but the tool does not usually recommend stocks with low purchase prices or penny stocks.
If you’re investing on a budget, you should consider using the Stock Screener tool on The Motley Fool website. It allows you to filter stocks based on different factors, including prices. In general, the Motley Fool’s success rate is relatively high.
Best Picks from the Stock Advisor
Next, in our review of Motley Fool Stock Advisor, let’s take a look at some of the best picks that have been recommended by the service. Since they added these stocks to their recommendations, investors have greatly benefited.
Amazon
David Gardner, one of the three founders of the Motley Fool Stock Advisor, bought Amazon stocks in September 1997, before the newsletter was even created. Then, by 2004, the Stock Advisor recommended Amazon shares to readers. It’s known as one of the few platforms that recommended Amazon back when it was still new.
Now, the online bookstore has evolved into a digital streaming video provider, a cloud service provider, and a smart speaker and tech device maker. Their shares have skyrocketed by over 16,300% since it was first recommended.
Walt Disney
Walt Disney (DIS) is one of the largest entertainment companies in the world, now owning ESPN, Star Wars, Marvel, Pixar, and more. It also consists of TV, theme parks, movies, toys, streaming services and more.
It was recommended by the Stock Advisor in 2004 and has been growing since then, offering investors a return of over 4,800%.
Netflix
Netflix, or NFLX, is another share that was recommended by the Stock Advisor. It first went public in 2002, and two years after this, the shares more than quadrupled, causing NFLX to split its stock. Motley Fool recommended NFLX shares to investors in 2004, which was surprising because, at that time, it was a small-cap stock that lost over two-thirds of its value due to its 52-week highs.
But a year later, the stock doubled. Since then, Netflix stocks have grown, reaching over 23,300% by 2023 and benefiting subscribers of the Motley Fool Stock Advisor.
The Motley Fool Investing Approach
Before you subscribe to the Stock Advisor of Motley Fool, you should know what their approach and philosophy is. The philosophy of the Stock Advisor is mostly on long-term investments rather than day trading or a ‘get-rich-quick’ approach. It focuses on investing every month in stocks that have good long-term potential.
On their website, they outline their investing philosophy, which is:
- Buy the stocks of 25+ companies over time.
- Hold stocks for 5+ years.
- Hold through market volatility.
- Add new savings regularly.
- Let winners run.
- Target long-term returns.
From this, you can see that you can enjoy Motley Fool Stock Advisor returns when you hold their stocks for at least five years. From our review of their track record, it is clear that holding their recommended stocks for a long time would give good returns.
The current portfolio of stocks recommended by Stock Advisor are:
- Information Technology – 35%
- Consumer Discretionary – 20%
- Communication Services – 13%
- Health Care – 10%
- Industrials – 8%
- Financials – 8%
- Consumer Staples – 2%
- Materials – 2%
- Energy – 2%
It seems like they have realized that the longer you hold their stock picks, the better they will perform. Also, keep in mind that they recommend some of their long-term stocks, but they will also let you know which ones to advise.
Who is Motley Fool Stock Advisor Best For?
Although in this Motley Fool review we have explored the performance of their stock recommendation service, it’s still important to know that it’s not for anyone. It’s not suitable for those who have not started investing at all, those who want personalized or exclusive picks, and day traders. If you want to make a quick buck or you don’t want stocks that are recommended for everyone, this platform is not ideal.
But, if you fit any of the descriptions below, then the Motley Fool Stock Advisor is suitable for you.
Busy Investors
If you want to invest wisely but are too busy with other things, you might not have time to carry out stock research. Investors with a lot on their plate can consider using the Stock Advisor since it gives you two picks to invest in every month. All you have to do is invest in these stocks, and your portfolio is good to go.
Fund Investors
If you’ve invested in index funds and ETFs before and now want to diversify your portfolio to include stocks, the Motley Fool Stock Advisor is a good option. The Stock Advisor reviews and testimonials have shown that the tool will do most of the work for you, so all you have to do is trust the picks that they have researched for you. It’s also suitable for those who want to hedge their investment portfolio against loss.
Long-Term Investors
Rather than day traders, if you want to invest your money in a good, long-term stock and simply leave it there, then consider getting your recommendations from the Stock Advisor. The platform is ideal for those who want to add stocks to their long-term investment strategy. If you’re a passive investor who wants to avoid choosing your stocks yourself, then get the Motley Fools newsletter.
Those Who Want An Investment Community
If you want to join a community while making your investments, you can sign up on the Stock Advisor. It features a shared message board where you can ask questions and share stock and investing ideas with others. If you want to meet like-minded people and discuss stock picks and investments, then this subscription is a suitable choice for you.
Motley Fool Stock Advisor
If you’re still wondering if Motley Fool is good for you, and are a fan of the old fashioned pros and cons technique to make up your mind, here’s our summary for you:
- Pros
- It offers stock recommendations to all its subscribers every month. Once you pay the annual fee, you get information on where to put your money for good returns.
- 24/7 Monitoring: Motley Fool is always monitoring their stocks. This means that you will get alerts on when to buy or sell a stock at the right time.
- As a subscriber, you get access to the previous stock picks recommended by the Stock Advisor.
- It offers tools like message boards, news feeds, market deals, and customer service.
- Reliable Track Record: The Stock Advisor has a solid track record of providing reliable recommendations to investors.
- Cons
- General Picks for Everyone: When you subscribe to the Stock Advisor, you get the same picks as everyone else. If you’re looking for special treatment, this is not the place for you.
- Annoying Upsells: The Motley Fool is known for pushing its newsletters and other services to subscribers. Although they are valuable, it’s quite frustrating when you don’t want these services.
- Only Recommends: Stock Advisor does not invest for you or manage your portfolio for you.
How to Subscribe to the Stock Advisor
So, you’ve decided that the Motley Fool Stock Advisor is worth it and want to take the next step forward. Subscribing to the service is pretty easy. All you have to do is open the Motley Fool page and navigate to the sign-up page of the Stock Advisor. Although you get free content on fool.com, you need to pay for premium content.
Once you get to the sign-up page, you can register with some basic information. These include your first name, last name, billing address, and credit card information. As a new member, you might come across an introductory promotional discount. The Motley Fool cost is $199, but you can get a special offer of $79 for your first year of access.
The one-year membership plan comes with a 30-day membership fee refund period, so if you’re not satisfied with the services, you can get your money back and move on. However, the monthly membership does not have any refunds, although you can cancel at any time.
If you don’t want to pay for the entire Stock Advisor service, you can consider paying for only one research report that contains a single stock pick from Stock Advisor, including an analysis of why it was chosen. It’s a good way to try out the Stock Advisor and know the answer to the question roaring all over the web ‘is the Motley Fool legit’ before paying annually.
Keep in mind that Stock Advisor is only one of the premium services from Motley Fool. You can also use Rule Breakers, which provides stock tips based on high-growth businesses. Then, Everlasting Stocks gives you twice-monthly stock picks on companies that are expected to grow steadily over the decades, ideal for long-term investments. It’s possible to purchase Stock Advisor, Rule Breakers, Everlasting Stocks, and Real Estate Winners together with the Motley Fool Epic Bundle.
What to Expect When You Subscribe
After you pay the Motley Fool subscription cost, you become a premium member. This gives you access to different services and resources. Here’s what you should expect when you subscribe:
- You are provided with Starter Stocks. These are recommendations suitable for new and experienced investors who are just adding stocks to their portfolios. They provide your portfolio with a strong foundation.
- 10 Best Buys Now, which gives you the top ten best stocks chosen from over 300 stocks. Whenever the analysts notice great prices in the stock market, they alert their members with a ranking.
- Two new stock picks are provided to you each month as a subscriber. This allows you to constantly add stocks to your portfolio.
- Subscribers receive different investing resources, including a library of stock recommendations and previous stock picks.
- Access to a large community of over a million investors, all interested in long-term investments. You can learn about investments and provide advice to others.
- Instant alerts, news, videos, and podcasts related to investment are provided to subscribers of the Stock Advisor.
What Do Other Motley Fool Stock Advisor Reviews Say?
Most of the Motley Fool reviews online are positive, as their users have gained money from investing in the stock picks. It’s a good idea to read both positive and negative reviews to know more about the platform.
On Trustpilot, the Motley Fool Stock Advisor has gained a 3.6 rating out of 8,042 reviews. Then, on Sitejabber, it has a rating of 3.06 stars out of 324 reviews. Most of the positive reviews praise the platform for its investment advice and long-term stock picks. It is also praised for having a strong community of members that you can connect with.
On the other hand, there are also some negative fool.com reviews. One of the complaints is that there are a lot of upselling and emails from the platform. It might be frustrating to receive all these self-promotion emails when you’re already a subscriber.
Also, some users have said that they lost money rather than gained when investing in the stocks recommended by the Motley Fool. But, this might be because their stock picks are focused on long-term investments and not short-term. So, the platform expects users to ride out the volatility of the market and gain profit in the long term.
Is Motley Fool Stock Advisor Worth It?
It’s hard to say no to the question, is the Motley Fool subscription worth it? All their stock picks have outperformed the S&P 500 benchmark by a long mile, and so it appears that anyone who invests in their stock picks as part of a long-term plan can enjoy gains in the broad market.
The Stock Advisor is an excellent platform that is ideal for those ready to start purchasing stocks and adding them to their portfolio. If you are still a low-dollar investor, you can benefit from the introductory price discount in the first year. After that, you should be able to afford the annual renewal rate, especially if the stocks you choose to invest in have favourable returns.
The company is a legitimate business, and the Motley Fool newsletter, Stock Advisor, is a successful, long-running stock recommendation subscription service with hundreds of thousands of subscribers.
Conclusion
Investing in stocks requires extensive analysis, knowledge, and research, which is why most investors consider a stock-picking service like the Motley Fool Stock Advisor. This doesn’t mean that you should put all your eggs in every basket. You should also ensure that the picks from the Stock Advisor are ideal for your investment strategy before investing.
In this Motley Stock Advisor review we have established that the service has a good reputation and an impressive track record in recommending stocks that can benefit your portfolio. The advisor does very well overall in providing reliable stock picks. If you’re up for the subscription service, you can enjoy the introductory price discount and, get started and try out their recommendations!
FAQ
We’ve concluded the Motley Fool is worth the money, as you receive monthly stock recommendations, past stock recommendations, top 10 stocks, and educational resources once you pay a one-time annual fee.
Motley Fool costs $79 in the first year, but after that, you will spend $199 annually. The introductory price discount makes it easy to afford it for the first year.
Motley Fool is a reliable stock picking service with over 750,000 paid subscribers and a trusted community of over a million investors. It offers trusted recommended stocks to improve your portfolio.
Motley Fool is a legit stock picker as it is a real company owned by The Motley Fool Holdings Inc. The founders are David Gardner and Tom Gardner, with headquarters in Alexandria, VA. It was founded in July 1993.
Motley Fool is not a scam but a real service powered by a reputable company. The Motley Fool has been around since 1993 and so you can rest assured that the stock picking service is not a scam.
The latest All in Stock from Motley Fool include Alphabet, Amazon, Airbnb, CrowdStrike, MercadoLibre, Taiwan Semiconductor, UiPath, dLocal, PayPal & Adobe.
Stock picking services are worth it as long as you’re working with the right services. With a successful and reliable stock picking service like the Motley Fool in the industry, you can get good recommendations.
Motley Fool will tell you when to sell or buy by sending notifications. You can use their instant alerts to receive sell recommendations when required.
You can use it by signing up and paying the subscription fee. When you subscribe, you receive the starter pack and monthly stock recommendations.