Motley Fool Rule Breakers Review

Rating

4.1

Introduction

Motley Fool Rule Breakers is a subscription-based investment service that provides stock picks, research, and analysis tools to help investors identify high-growth companies. The service is run by Motley Fool co-founder David Gardner.

Are you looking for the best investment research service that would help you boost your returns in the stock market? If you are, you have probably heard of the Motley Fool Rule Breakers program, and you are wondering whether it is worth the investment.

You could also be wondering whether there are viable alternatives to this service out there that you could take advantage of. We can tell you that these are the right questions to ask before making any financial commitment to the program.

In this detailed review, we shall do a thorough analysis of the service so that you can fully understand what it has to offer.

About Motley Fool's Rule Breakers

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The Motley Fool Rule Breakers is a Stock Picking Service by Motley Fool Company. This firm was established in 1993 by two brothers, Tom and David Gardner, and has grown to become one of the leading brands in the investment world.

Its main goal is to make investing as straightforward as possible, void of the complicated terms and strategies that often scare off potential traders.

Back to the program, Motley Fool Rule Breakers is a renowned stock picking tool that aims to give investors a competitive edge in the market by providing them with amazing stocks picks and investor education. 

Some of the things that you get when you subscribe to the service include:

  • Two new stock picks per month
  • Educational content
  • A list of the best stocks to buy
  • A selection of starter stocks that would build a robust stock portfolio

From afar, it is easy to say that Rule Breakers is similar to the Stock Advisor (sister service) in all aspects. However, you shall soon see the difference.

David Gardner himself provides the stock recommendations. He has a team of analysts who are always on the lookout for disruptive growth companies. Here now is the difference with the Stock Advisor.  Rule Breakers focuses on particular companies, i.e., those on the path for massive growth.

The companies could be established firms with strong brands or innovators in upcoming industries.

Motley Fool Rule Breaker's Features

motley fool rule breakers

What features are included in the Motley Fool Rule Breakers? This is a question that would help you decide whether the program is worth its price tag. 

Let’s now see the main features of this service in greater detail.

I) Best Buys Now

Rule Breakers has a list of five ‘Best Buy Now’ stocks picks, which it updates every month. The updating aims to ensure that you always get the best stock picks recommended by the Rule Breaker’s team. This aspect of regular updates is something that many investors appreciate as it offers you accurate information on the best buy-and-hold stock picks.

By monitoring this list, you can easily see which stocks picks have the most potential for long-term growth. 

II) Two Monthly Growth Stocks

When you subscribe to the program, you get two new growth stocks to trade every month. Each pick is accompanied by detailed research and analysis to explain the case for the recommendation.

Most of the information is speculative and focuses on the potential for higher price appreciation and risk.

Although the picks tend to be top performers, you should not always expect sharp returns from every recommendation. It is also worth noting that you do not have to buy both of the growth stocks, but there is no harm in having some information on the hottest upcoming stocks in the market.

III) Portfolio Access

Once you sign up for the program, you will get instant access to Motley Fool’s portfolio of Rule Breakers stock picks. Here, you will get some of the best growth stocks in the market; after all, the service deals with companies with tremendous growth potential.

You will get a balance of well-known companies and those that are basically unknown by mainstream financial media. The advantage of trading in under-the-radar stocks is that you can expect more gains when Wall Street picks them up.

All in all, Rule Breakers has a reliable recommendation library where you can find the ideal long-term stocks to trade.

IV) Educational Material and Trading Tools

The impressive bit about this service is that it does not only offer stocks. As a subscriber, you will get full access to the Motley Fool library of investing resources and trading tools, which is packed with tons of educational materials. This is something that you will greatly appreciate, especially if you are joining the investment world.

Since this service is meant for all skill levels, the educational materials cover the basic topics for beginners and advanced topics for experienced investors.

If you take full advantage of the education offered by these materials, you are likely to end up as a very skillful and smart trader in the future.

V) Investor Support Community

Through Fool.com, you will get access to a very active investor support community filled with like-minded investors. One of the advantages of this forum is that you can fall on a trade idea or find a top stock pick among the many being floated around.

Also, by airing out your trade ideas to the audience, you could discover whether or not it is something that you ought to try out.

It is easy to underrate the significance of this investing community. What you may not know is that it is a smart way of sharpening your trading skills, vetting your trading ideas, and finding stock picks for trading.

VI) Bi-Monthly Investment Newsletter

Twice a month, you will be a recipient of an investment newsletter that features in-depth stock market analysis and research.

All the information that you get here is meant to make you more knowledgeable of the stock market so that you fully understand what to expect in the investment world.

The Stocks Recommended In Rule Breakers

rule breakers platform

Rather than just mentioning the stock picks, let us now look into the different categories briefly. Keep in mind that Motley Fool’s trading methodology revolves around having a diversified portfolio that has over fifteen different stocks.

Here are some of the different categories of stock picks available:

1. Best Buys Now

These are the stocks that you have to add to your portfolio today. The category includes stocks that the service has recommended before, and you could still earn some great returns from them.

2. Starter Stocks

As the name suggests, these are stocks that aim to give your portfolio a firm foundation. Here, you will find big companies with revenue streams and sales channels that are established. In some instances, these are the stocks that give your portfolio a sense of stability.

3. Fresh Recommendations

Finally, this category features the monthly recommendations that the service sends you. Every month, David Gardner offers you two new stock picks. If you are an investor who wishes to diversify your portfolio and boost your returns, this is the perfect opportunity to do so.

Each pick comes with a short yet full research report explaining the logic behind the investment. The information is presented in the simplest language to help you make a wise investment decision. 

Some of the information that you get from the report includes vital company information, the reason behind the recommendation, and the risks you are likely to face in the venture. Serious investors are the ones who are most likely to appreciate this information.

The Track Record Of Stocks Picked In Rule Breakers

rule breakers performance

It is amazing how Rule Breakers has maintained its consistency of beating the market, recording average returns of over 277%. Further, the stock-picking service has outdone the S&P 500 by over 300%. How impressive is that?

And to give you an idea of how top-performing this program is, Wall Street gave it the ‘Top Investment Newsletter’ award for three consecutive years between 2017 and 2019.

As you can see, not many services can keep up with Fool’s outstanding performance.

About the Creators

David and Tom Gardner

The developers of this program are David and Tom Gardner, who are the co-owners of the Motley Fool enterprise. The brothers created the Motley Fool’s website in 1993, and the idea came from David, who had an investment newsletter in mind.

It was when Tom joined the bandwagon that the newsletter began to gain some traction since he helped promote it on America Online (AOL). Motley Fool was a crucial platform for average investors as it helped provide valuable insight into the world of investment. 

In the early 2000s, the Fool launched two services, i.e., The Stock Advisor program in 2003 and the Rule Breakers program in 2004. Other services that are under the Motley Fool umbrella include Everlasting Portfolio and Motley Fool Options.

The Pricing

In normal circumstances, a subscription for the Rule Breakers service would go for $299 per year. However, by the time of going to print (2020), the service was going for $99 per year. And that’s not all, as there are several trial offers that cost as low as $19 per month.

There are numerous investment newsletters that charge more than $99 per year, and this is why we consider this price to be a great offer.

To give you confidence in subscribing to this service, the program is backed by a 30-day money-back guarantee. This means that if you try out the product and you are not impressed with it, you could ask for a full refund of your money provided that 30-days have not elapsed since subscribing.

As you can see, the creators are confident that you will be satisfied with their product.

Who is Rule Breakers Best For?

If you are an investor who wants to buy and hold positions for about five years, Motley Fool Rule Breakers would be the ideal program for you. 

The service focuses on growth stocks of companies with long-term growth potential, and if you want to make a kill on this potential, you ought to hold these stocks for the long term.

Also worth noting is that investors would find this service to be useful at different stages of their growth in the venture. If you are new to the trade, the stock picks will help in building a strong portfolio that is capable of giving outstanding returns. 

And if you are approaching your retirement, the picks could help you to maximize your retirement portfolio.

Is it Legit?

The answer to this question is simple, yes! You may have come across numerous questionable stock newsletters out there, which may have affected your stance on the services.

However, Motley Fool is a service that has been there for several decades, and its performance and track record is well-documented.

Motley Fool Rule Breakers vs. Stock Advisors

In case you are wondering, Stock Advisor is a sister service to Rule Breakers and runs under the Motley Fool umbrella. It is normal for individuals to be confused by the two, which makes them not know which one to go for.

So, what sets the two services apart, and which one would serve you best?

The Stock Advisor is a service that may be more suited for the newbies, but the veteran investors could make use of it too. It is designed for the investors in the search for stock ideas that could bring stable or above-average returns in the long term.

Motley Fool Rule Breakers, on the other hand, is only for the aggressive traders looking for growth stocks that have the potential of yielding great returns as time goes by.

Another difference is that Rule Breakers pays attention to a certain type of stock, while the Stock Advisor offers general recommendations.

Keep in mind that the two services are not competitors, and it is even possible to use them together. Your ideal choice squarely rests on your investment strategy.

Pros and Cons

As much as this is an amazing program, it also has its disadvantages. Therefore, we will briefly mention its benefits and drawbacks too.

Here they are.

Pros

  • Has a consistent record of beating the stock market
  • Offers two stock picks per month
  • Developed by reputable names in the stock investing world
  • Offers in-depth research reports
  • Relatively low subscription cost

Cons

  • Even with all the information, the market is still unpredictable and may pull a fast one on you
  • Fully relying on the information provided by the service instead of conducting further research is an issue for us

Conclusion

As we conclude, the question that may be lingering in your mind is, ‘Is it worth it?’ Well, if you are an investor looking for long-term growth stocks, there are several reasons why we would tell you to go ahead and subscribe to the service.

First, at $99 per year, this is one of the lowest-priced stock picking services out there. Then, the developers, the Gardner brothers, have an impressive track record of picking profitable long-term growth stocks. This implies that there is little reason to doubt the information and advice that they provide in this service. 

Finally, there is the 30-day money-back guarantee that should give you the confidence of investing in the service without making any losses as you could claim refunds.

With that, the only other thing we can advise you is that you should conduct your own independent research before acting on a particular recommendation.