Rating
Introduction
Motley Fool Stock Advisor is a premium subscription service that provides stock recommendations and market analysis to help investors make informed decisions. Led by Motley Fool co-founders Tom and David Gardner, the service offers a range of resources to help users build and manage a successful portfolio.
Have you heard of the Motley Fool Stock Advisor? It is a stock-picking newsletter published by a FinTech company with the same name. The service provides regular investment recommendations for a fee. The purpose of this review is to evaluate whether the Motley Fool Stock Advisor is worth the cost.
In this review, we will examine the pros and cons of the platform, which has received mixed reviews from those who have used it.
About Motley Fool's Stock Advisor
The company was founded in 1993 by two brothers, Tom Gardner and David Gardner. It is based in Alexandria, Virginia, but also has subsidiaries in various locations including the UK, Singapore, Canada, Germany, Japan, Hong Kong, and Australia.
According to the NASDAQ website, the company operates primarily as a multimedia financial services provider, with the goal of creating a thriving investment community. They use various media platforms, including their website, books, radio shows, newspaper columns, TV appearances, and subscription newsletters to reach their audience.
You may be wondering about the company's unusual name. According to our research, the founders chose the name "FOOL" from Shakespearean literature, where it refers to wise fools who instruct and entertain at the same time. This seems to be in line with the company's goals.
Key Features of the Motley Fool Stock Advisor
As a member, you will have access to various tools designed to help you make informed investment decisions. For example, you can view current and historical recommendations for top stocks to buy.
In addition, each of the suggested stocks comes with a number of related articles that allow you to research further before committing your money.
There are also many other features to look forward to, including (but not limited to):
1. Investment Education
The stock advisor members-only platform is a beehive of activity. Here you’ll find a wide range of educational content that can help you make better investment decisions.
As you know, education is quite an important component for any trader who wants to keep sharpening their skills. Through the Fool’s features, it’s possible to learn about new strategies while also accessing ready-made stock recommendations.
We particularly like how well laid out their content is. Each one of their guides is broken down into simple steps that you can take at your own time and enjoy the process. This, therefore, makes Motley Fool an ideal platform for beginners and experienced traders alike.
2. Built-In Alerts & Stock Management Tools
There is more to Fool.com Stock Advisor than just the investment advice. And now, thanks to the immense power of modern technology, it’s possible to create a unique portfolio of stocks provided you become a member. This portfolio is similar to what’s known as a watch list on other websites.
And through the customized portfolio, it’s easy to gauge the performance of your preferred stocks and also receive tailor-made alerts whenever you need them.
We, like the fact that the stock management and alerts tools are quite simple. And besides the great educational courses provided here, we think that this is also a pretty nice addition worth looking forward to.
3. A Productive Community
The best way to learn how to invest in stocks is by working closely with folks who understand the rules of the game. And what better way to do that than by hanging out with the professionals on a high-end online forum?
The Stock Advisor has what in our opinion seems like a pretty well-managed community. This may not be the most active chatroom on the markets but it certainly commands a decent amount of activity.
And what matters at the end of the day is the quality of the chatter, not the quantity. And, therefore, in our view, if you’re looking for quite some mature message boards, you’ve got to like what’s available here.
4. Access to Special Reports
You may not have the time to read the extensive reports and opinions that they post every so often but you certainly can find a few minutes to go through their monthly reports.
These monthly reports come with a variety of stock recommendations. And this way, if you still aren’t sure where to put your money, this special publication can be of great help.
One thing you need to keep in mind is the fact these are not just reports but also learning opportunities. Each report comes with investment guidelines. And, therefore, even if you’re just getting started or are confused about which stock would be best suited for your investment style, this report would go a long way to build your confidence.
And what’s more? Within those monthly report are detailed investment strategies meant to make the job easier for you. So, if your current investment strategy hasn’t been working for you and you’re looking for the latest replacement for it, the Motley Fool Stock Advisor would definitely be worthy of your attention.
5. Monthly 10 Best Buys
David and Tom are always on the lookout for new stock trading ideas. And each month, they do share their list of the top 10 best stocks to invest in. These are not just random picks but ones based on a historical analysis of the markets.
Can you imagine getting direct investment suggestions from two gurus who have been studying the markets for close to 3 decades? In our view, getting trading tips doesn’t get easier than this.
6. Access to Library Full of Investing Content
As we’ve already pointed out, these guys have been studying the markets since 1993. And the best part is that they don’t just delete their content. They have a rich library where they stock all their materials for future reference.
So, by becoming a member, you’ll get the keys to this library. And as Tom and David like to refer to it, this is a one-stop-shop for anyone who wants to learn everything about investing.
As a trader, you should never get tired of learning. There are always new trends coming up every so often and likewise, there’s always some historical data worth referring to. In that regard, the Stock Advisor sounds like a good place to be.
Motley Fool's Stock Advisor Performance
One thing that sets this company miles ahead of the competition is the fact that they have established a great track record. Indeed, reputation is key, especially to investment research firms.
So far so good, our background check of their track-record and customer experience revealed that though the company isn’t perfect, it’s trustworthy and beneficial to a vast majority of those who have interacted with any of its services.
Their stock advisor program has earned the reputation of being an award-winning system which easily beats the returns of the S&P 500 by linking you up with sectors that hold great fortunes.
And while at it, the company stands out with its ability to remain transparent. In fact, you can easily track how they’ve been performing since 2002 by visiting the “Performance” page which appears on the members’ area. Some of the details provided on that page include:
- The stock recommended
- The date of the recommendation
- The average risk score
- The ideal buying price
- The overall returns of the said stock
- A comparison of those returns to those of the S&P 500
Further to that, the company goes ahead and publishes a list of its winning and losing stocks. This is unlike other platforms that only post their winning predictions, instead choosing to hide their losing ones.
Stock Advisor's Money Back Guarantee
Whether you’re going for the yearly or monthly package, you can always get a refund of your cash if you choose to cancel the subscription within the first 30 days. That said, monthly subscriptions are not refundable, all you can do is cancel them to stop future billings.
Only a company that’s ready to stand behind the quality of its products can provide such a bold move. And so, you can rest assured that your money will be safe once you opt into this system.
Motley Fool's Customer Support
The company has an outstanding customer support team behind it. All the queries we sent to them were fully answered plus they have a team that actively follows up on different issues.
That said, the Stock Advisor is only limited to between 9am and 5pm ET from Monday through to Friday. However, you can choose to send them an email any time although they usually respond during office hours.
On average, it takes about 24 hours for them to get back to you although you may need to wait longer, for instance, if you contact them on a Friday evening. In that case, you’d need to wait till Monday.
Motley Fool's Pricing Plans
Our focus today is entirely on the Stock Advisor platform which is hailed as one of the groundbreaking innovations that catapulted the entire company to the very top of the markets. This service goes for $199 per year which in our opinion is a highly competitive price.
Other than the Motley Fool Stock Advisor premium service, a few other services are available on retail. These include:
- Rule Breakers – Meant for investors who would like to make calculated but time-weighted returns, the Rule Breakers service goes for $299 per year. In exchange, it provides you with 2 stock picks per month and 2 best buy now suggestions.
- Rule Your Retirement – Looking for a retirement plan that will help you grow your wealth in a sustainable way? This might just be the platform you need to have in mind. Here you’ll find in-depth information on various investment tools ranging from mutual funds to ETFs. The plan retails for $149 per year and comes with handy social security tips along with frequent analyses on critical retirement topics.
- Market Pass – This is a service that brings you up to speed with the data you need to make wise choices on small-cap, dividend and value ideas. It also comes with special reports along with highlights on biotech breakthroughs for $1499 per year.
- Options – Also referred to as the Options University, this is an ideal platform for anyone looking for weekly news commentary on options trading. This would be a perfect bet for anyone looking to generate an income even when the market is flat. This goes for $999 per year.
- Other Plans – There’s the Total Income plan with 5-income generating strategies priced at $1999 per year. You’ll also find the Supernova package which is home to some high-growth stocks picked by David Gardner himself. The Explorer Plan (EXP1) is all about capturing key market trends helping you make huge returns from market trends, from $1999 per year.
Lastly, there’s the Premier Pass and One packages. The former goes for $3999 per year and grants you access to all Motley Fool services except the “One plan.” The One plan itself is a package that links you up to Tom Garner’s Everlasting Portfolio.
The package is designed to help any ultra-long-term investor generate extraordinary returns. Unfortunately, this package goes for $8499 a year and is currently only available to a select few members.
What Kind of Trader Is Motley Fool Stock Advisor Suited For?
Having gone through the different Motley Fool reviews, we can conclude that this company gets a bad rap because their aggressive marketing strategy often nets traders looking for short-term gains.
In our view, the Stock Advisor is best suited for anyone who is after a buy and hold strategy.
Pros
Cons
Conclusion
The Motley Fool Stock Advisor platform is ideal for anyone who wishes to use a hands-on approach to trading stocks. They have some pretty useful analyses and special reports. What’s more? They’ve been around for quite some time and you can bet they know what they’re doing.
That said, this service is best suited for anyone looking for a slow but sure way of doing things. Also, we’d recommend it for traders leaning more toward fundamental analysis than technical analysis.
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