Rating
4.1

Introduction

Discover market-beating growth stocks, learn which businesses are poised to be tomorrow’s stock market leaders, and see which companies are the best stocks to invest in today.


If you’re anything like me, you might wonder how you can invest in a way that takes on a little more risk than your typical investments, yet still play it safe enough to protect your portfolio. One of the problems you encounter when Googling “how to beat the stock market”, or “stock market insider secrets” is too many leads to big book or newsletter web pages full of hype.

You’ll usually be told over and over again that you’ll find stocks that are guaranteed to beat the market, learn how to trade the same way big name Wall Street pros do, and build wealth like you never have before.

The main problem with many of these advertised newsletters or e-books are that most of them say the same things. You don’t learn more from reading them than you would reading financial news on regular free websites. Some of the self-proclaimed gurus who write these newsletters or books are simply looking to profit from you buying them, and some really don’t have the investment knowledge that they claim to have.

A Newsletter That Does Have Information About Beating The Market

The main problem with legitimate investor newsletters that share real insider information is that they’re often priced pretty high with some costing hundreds or even thousands of dollars per year. To be fair, some of those newsletters are very reliable with the kind of investing advice they give, and some investors may make key trades that strike big money in dividends.

But as I found out, you can still get good investing information without paying a fortune for it, and the newsletter I found that works for me is the Motley Fool’s “Rule Breakers” publication. It’s important to add that like all other newsletters, there is never any guarantee that an investment recommendation is going to work, and you need to think through how much you’re willing to invest, and know your own risk tolerance.

But if you’re willing to take on some risk and do some of your own homework on stocks, you can definitely find some real winners that other investors have missed out on. Before I go into how you can best put this service to use, it’s important to know who the people are behind it.

About Motley Fool’s Rule Breakers

The newsletter is a service of the main Motley Fool website which is always publishing fresh news content from its many reporters who are dialed into the NYSE. You can find out a lot about which stocks are rising, falling, and which industries are currently performing the best right now. What subscribing to “Rule Breakers” does is build upon that news information and give you a lot more analysis of the markets. It is also written by Motley Fool founders David and Tom Gardner who’ve put a lot of extensive research into it.

Even though the Gardner brothers named their site the Motley Fool, and in some cases refer to it simply as The Fool, they are no fools when it comes to investing. One thing I’ve noticed about many financial newsletters is that they tend to be written by former hedge fund directors, former big investment bank advisors, or other people who’ve spent their careers in wealth management on Wall Street.

It certainly can be good to get perspective from the pros who’ve seen investments in all kinds of funds, and who’ve seen all the markets up close and personal. But sometimes that kind of background may make you feel like you’re getting advice from people who have deep pockets to take on all kinds of risks, and who may not fully understand where you’re coming from. Well the Gardner brothers probably can relate to you because they started where most of us have started or are currently starting at.

David and Tom Gardner are not former Wall Street executives or billionaire business owners. They started making investments as normal middle class Americans who were given their initial tips on investing from their father. Their educational background is in English and creative writing, and it certainly seems to have manifested itself in their well-written articles and detailed explanations.

But they began the Motley Fool website in 1993 long before the internet was even close to what it is today, and their mission then was the same as it is now. They want investing to be as easy to understand as possible for the average Joe, and for information shared to be unbiased and transparent. The “Rule Breakers” itself was started in 2004, a year after their primary newsletter “Motley Fool Stock Advisor” began.

All that to say, with how long this newsletter has been running, and with all the subscribers it has, you can be sure it’s maintained a very good reputation.

The Stocks Recommended In ‘Rule Breakers’

Most of the stocks this newsletter focuses on are growth stocks, and it’s important to know what those are before you start following the newsletter’s recommendations. Unlike most growth stocks which can be overpriced and have a high P/E ratio, the ones you’ll find in “Rule Breakers” are often undervalued and ignored by most market analysts.

But they’re usually companies who are getting ready to unleash new products, setup new business services, and become the next big phenomenon that everyone talks about. An example would be a company like Facebook which started as little more than a place to share photos with friends, but then revolutionized its services and changed social media forever.

In the meantime its stock shot up rapidly in the market. That’s the kind of discovery that the Gardner brothers share here in “Rule Breakers”, and you can find out which stocks may be the next big thing each month.

The Track Record Of Stocks Picked In ‘Rule Breakers’

“Rule Breakers” backs its findings up by showing the information of its past findings to all subscribers. This includes both winner and loser picks, and the team of researchers do not claim that all their recommended stocks are going to hit a boom.

But in the grand scheme of things, the Motley Fool crew has done a tremendous job in getting stocks that generate tremendous returns. Their cumulative rate of return when adding in every stock picked, whether it made gains or losses, is 167%, a number that’s quite impressive over the 17 years the newsletter has been around. The main market indexes themselves have never reached that cumulative rate of return.

What you can do within their newsletter pages is run an inquiry on all stocks suggested by the Motley Fool’s team, and you’ll get to see charts and performance data on those stocks.

Transparency In Recommending Picks

One thing about the Gardner brothers is that their actions have shown that they aren’t recommending stock picks to just give their own portfolios a bump; and they make no hidden commissions off of investors when they buy those stocks. They don’t just write puff pieces trying to lure investors in with phrases like “this stock is set to give you six-figure earnings right now”.

They give you a complete breakdown of the company they’re recommending and offer a thorough explanation of what the company does, why a certain development could be huge for them, and why their stock grow the way they’re predicting. The Gardners have even attended Congressional hearings in which they advocated for regulations to make Wall Street more open about its practices.

Newsletter Is Easy To Read

Readability is a big deal with newsletters because if you’re a newer investor who’s trying to figure out how the market works, you don’t want to have to wade through too many technical details. Now assuming you want to know all the details about why a certain stock is a hot pick, you certainly could be in for a lengthy read. But I can assure you it’s definitely worth your time to read through them and make up your own mind on whether you agree with the recommendation or not.

Other Perks With ‘Rule Breakers’

Just for being a member of “Rule Breakers”, you’ll get two new recommended stocks each month and five “buy now” stocks as part of the newsletter. These are all sent out in emails with the first new stock recommendation made the second Thursday of the month, the five buy now stocks made the third Thursday, and the second new stock recommendation emailed on the fourth Thursday.

There are also stock picks they designate as starter stocks to give new members a place to begin with. There is even a discussion forum on the main Motley Fool website which you can use if you’re a newsletter subscriber. Here, you’ll get to see what other members just like you are saying about the stock picks, and it might help you decide whether or not you should get them.

How This Has Turned Out For Me

So taking into account all the things I just mentioned about “Rule Breakers”, and considering I was willing to risk a few thousand dollars in the market, I decided to go ahead and give it a try. Note that you’re on your own in terms of which brokerage you want to invest with, and it’s up to you to find out which ones charge the least amount in fees.

I can tell you with certainty the stocks I bought have done remarkably well doubling in gains in just one year. One thing other reviewers have found is the longer you’ve held the stocks recommended in the newsletter, there’s a high likelihood they may have made returns of around 400% or more.

Now, don’t just assume that all stock picks are going to turn out like that because I can point to several stocks recommended in “Rule Breakers” that have gone down in value over a year too. But the winners gains have far outweighed the losses in the overall number of picks in the newsletter, and so far that has held true for me too.

Other Important Things To Know

While both “Rule Breakers” and “Stock Advisor” have some similarities in how their stocks perform against the market, “Stock Advisor” has a lot more blue chip stocks in it and tends to offer more safe picks, whereas “Rule Breakers” is more about hitting the jackpot now. Both are comparatively priced with “Rule Breakers” at $19 per month or $99 per year.

You really should just go with the $99 per year because that’s less than $10 a month, and you can use their 30-day money back guarantee program if you end up not liking it. Compared to many other newsletters out there, that price is an extremely good deal.

Final Words

In conclusion, this program has worked well for me in reaching long-term investment goals, and I definitely think you should subscribe to it if you’re a stock enthusiast. It is pretty much exclusively focused on individual stocks though, and therefore you won’t be getting much information on mutual funds, ETFs, options trading, or other investments.

But it’s pretty easy to start subscribing to, so you should go ahead and find out whether or not it would work for you.