The Motley Fool is one of the most well-known investment research services, providing stock picks and analysis to over 300,000 members. But are their stock recommendations really worth paying for? In this comprehensive Motley Fool review, we’ll take an in-depth look at their services, performance and what real users say in their Motley Fool reviews.
Overview of The Motley Fool
Founded in 1993 by brothers David and Tom Gardner, The Motley Fool aims to provide average investors with the tools to beat Wall Street professionals. They offer a variety of stock picking newsletters, specialized services and educational resources for investors.
Their flagship product is Motley Fool Stock Advisor, which provides monthly stock picks and analysis. Other popular services include Motley Fool Rule Breakers, focused on growth stocks, and Motley Fool Options, providing options trades.
In addition, The Motley Fool offers a range of free content including stock research, podcasts, boards and video shows. The company is based in Alexandria, VA and is 100% digital subscription service.
Motley Fool Stock Picking Performance
The core of The Motley Fool’s services is identifying stocks likely to outperform the broader market. But do their stock picks actually deliver?
According to Motley Fool, their Stock Advisor recommendations have averaged returns of 584% since 2002, compared to the S&P 500’s return of 114% in the same period. That’s over 5x the market’s performance.
Some of their most successful picks have included stocks like Netflix (gains of over 9,000%), Amazon (over 3,000% return) and Apple (over 1,000% return). Even picks with more modest gains have cumulatively crushed index returns over time.
The Motley Fool also provides access to their full universe of 20+ years of stock picks so users can verify performance. While past results don’t guarantee future performance, the Motley Fool’s track record is quite impressive.
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User Reviews of The Motley Fool
With any stock picking service, it’s important to see what actual users have to say. Here’s a summary of Motley Fool reviews from across the web:
The majority of user reviews rate Motley Fool positively overall. But there are a minority of negative reviews citing high pressure sales tactics, misleading marketing claims and poor customer service.
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It seems Motley Fool’s strong stock picking track record is offset by a subpar customer experience for some users. But most say the investment research merits the membership fee.
Motley Fool Stock Advisor
Motley Fool Stock Advisor is The Motley Fool’s flagship stock picking newsletter. Here’s an overview:
Stock Advisor is focused on finding long-term investments with high growth potential. Past picks have included hugely successful stocks like Tesla, Netflix, Facebook and Amazon.
The service provides detailed analysis on each stock pick including investment thesis, risks, metrics and more. The monthly picks are a mix of stocks across sectors and market caps.
For stock investors looking to beat the market through savvy picks, Motley Fool Stock Advisor provides valuable guidance and ideas. The cost is also reasonable given the extensive research.
Motley Fool Rule Breakers
In addition to Stock Advisor, The Motley Fool offers other premium services targeting different investment strategies.
Motley Fool Rule Breakers specifically focuses on identifying earlier stage hyper-growth stocks. Here are the key details:
Rule Breakers leverages The Motley Fool’s expertise at spotting up-and-coming market leaders early on. The stocks tend to be higher risk, higher reward. But identifying the next Amazon, Netflix or Apple early could lead to enormous returns.
This service may appeal to more aggressive investors comfortable with greater volatility in pursuit of finding ten-baggers. The analysis digs into identifying transformative companies.
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Is Motley Fool Legitimate?
Given mixed reviews, a common question is “Is Motley Fool legitimate?” The company is 100% legitimate, registered business in good standing.
They provide real investment research and stock recommendations. While there are some complaints about customer service issues, their core stock picking services appear sound.
Unlike some scam services featuring fake gurus and impossible returns, The Motley Fool has a 20-year track record proving the success of their analysis. There are certainly dissatisfied customers, but most reviews indicate the stock picking merits the fees.
Motley Fool Options Service
In addition to traditional stock picking, The Motley Fool also offers a premium options trading service. Motley Fool Options provides:
The service aims to leverage options to boost portfolio returns. Recommended trades typically focus on long-term positions with a bullish bias.
With options trading inherently risky, this service is best suited for investors comfortable with options. But it provides a more systematic approach to options vs. guessing on random trades. The monthly trade alerts make implementation simple for members.
Motley Fool Investment Strategy
The Motley Fool’s stock picking strategy combines both growth and value principles:
Essentially they want to invest in great companies at reasonable valuations. While they are growth focused, they avoid extremely overvalued stocks.
This approach has proven successful over time. Past picks like Amazon, Netflix, Facebook, Google and Apple exemplify this strategy.
Pros & Cons of The Motley Fool
Here are some key pros and cons to weigh with The Motley Fool:
Pros
Cons
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Overall The Motley Fool’s pros of adept stock analysis and picks outweigh shortcomings for most investors. But high-volume traders or quants may prefer services with more robust tools and charts.
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Is Motley Fool Worth It?
The Motley Fool undeniably provides savvy stock picks and investing education. But is it ultimately worth paying for?
For investors looking for stock ideas and actionable guidance, Motley Fool is likely worth the reasonable annual fees. The stock research alone can pay for the membership cost if you invest in just a couple successful picks.
However, more advanced investors doing their own analysis may not find sufficient value-add. The discussion boards and community interaction may still offer some benefit.
Casual investors skeptical of beating the market may also prefer just passive index funds over stock picking services. But for stock enthusiasts looking for an edge, Motley Fool is certainly worth considering.
What Stocks Does Motley Fool Recommend?
Motley Fool provides dozens of new stock picks every month across their various services. Some recent popular Motley Fool stock picks have included:
Picks range from mega-cap stocks like Apple and Microsoft to lesser-known small-caps. The Motley Fool identifies compelling stocks across all sectors and market caps.
While not every pick is a winner, members gain valuable exposure to stocks likely to outperform. The picks are backed by thorough, easy to digest analysis too.
Motley Fool vs. Morningstar
Morningstar is another popular investment research provider. How does The Motley Fool compare to Morningstar?
While both services offer extensive stock research, Morningstar focuses more on fundamental analysis. Motley Fool leverages story-based investing and identifying future star companies early on.
In terms of costs, Morningstar tends to be cheaper for more casual investors. Motley Fool provides better value for committed stock pick subscribers given their impressive returns.
Ultimately, Morningstar takes a more clinical, data-driven approach. Motley Fool appeals more to investors who appreciate compelling narratives and visionary companies. The services can complement each other well for investors wanting both quantitative and qualitative research.
Is Motley Fool Free?
The Motley Fool offers a wealth of free investing resources including:
However, their stock picks and in-depth analysis require a paid membership. But the free content provides a good taste of The Motley Fool’s approach.
While you can certainly invest successfully with just free resources, paying for actionable stock picks provides important guidance and ideas. The reasonable membership pricing ultimately provides good value relative to the extensive research.
Motley Fool Complaints: What Users Dislike
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While most reviews are positive, there are some common complaints in negative Motley Fool reviews including:
Many complaints relate more to business practices vs. the investment research itself. But it’s still important to be aware of these issues cited by some users.
Motley Fool Review Summary
The Motley Fool undeniably provides investors with well-researched stock picks and abundant educational resources. Their track record proves adept stock analysis leading members to market-beating returns.
While there are some complaints around customer experience, their core stock picking services appear quite sound. For investors seeking actionable stock ideas, Motley Fool services offer good value. Just be prepared for some aggressive upselling along the way.
Ultimately The Motley Fool is best suited for stock enthusiasts interested in hands-on guidance identifying tomorrow’s winners. More passive, index investors may not find sufficient benefit relative to the membership costs.
But if you have interest in stock picking, Motley Fool provides a proven approach to beat the market through savvy stock selection and story-based investing principles. Just be wary of marketing hype distorting actual past performance.
Frequently Asked Questions
1. Can Motley Fool stock picks be trusted?
Yes, Motley Fool stock picks can generally be trusted. Their 20+ year track record shows market-beating returns driven by adept stock selection. But as with any service, not every pick is guaranteed to be a winner.
2. Is Motley Fool worth paying for?
For stock investors, Motley Fool services are likely worth the costs given their extensive research and successful past picks. But index investors or traders may find limited benefit relative to fees.
3. What stocks does Motley Fool recommend?
Motley Fool provides dozens of stock picks every month spanning all sectors and market caps. Recent popular picks include Shopify, MercadoLibre, Sea Ltd, Roku, and many more.
4. Is Motley Fool better than Morningstar?
Motley Fool offers more compelling stories and visionary stock picks. But Morningstar provides superior fundamental and quantitative analysis. The services can complement each other well.
5. Can you use Motley Fool for free?
Yes, Motley Fool offers free investing podcasts, articles, videos and discussion forums. But you need a paid membership for full access to their stock research and recommendations.
6. Does Motley Fool beat the market?
Yes, Motley Fool stock picks have historically beat the market significantly. Their Stock Advisor picks have returned over 5x more than the S&P 500 over the past 20 years.
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7. Can you make money following Motley Fool?
Yes, many investors have made substantial profits following Motley Fool stock picks. Of course not every pick is successful, but their overall track record is very strong.
8. How many stock picks does Motley Fool provide?
Popular services like Stock Advisor provide 2 picks per month, while pricier options like Rule Breakers offer 30+ picks annually. Higher tiered services include more recommendations.
9. Is Motley Fool Stock Advisor worth it?
Yes, for stock investors Motley Fool Stock Advisor provides good value. The $99 annual cost is reasonable for access to their analysis and successful past picks. But index investors may find less benefit.
10. What are the downsides of Motley Fool?
Some downsides are excessive upselling, confusing marketing claims, mediocre customer service at times, and reliance on story-based investing over quantitative analysis.
