Researching stocks can be time-consuming. Even when you believe you’ve found a winner, what’s to say your research is on par with that of professional stock investors?
Instead of doing the research on your own, why not let a pro (or two) do the research for you, showing you why they are picking certain stocks all along the way?
That probably sounds expensive. And, generally, it is. But not with The Motley Fool. The Motley Fool provides stock recommendations for as little as $99 per year. The Motley Fool has been around for a long time and has developed a great track record. In this article, we’ll dig into their flagship investment newsletter and see if it's worth the price.
Quick Summary
- Affordable stock-picking investment newsletters
- Professional stock, index fund, and ETF analysis
- Lots of free education on its website
Motley Fool Details | |
|---|---|
Product Name | Motley Fool |
Services | Premium Stock-Picking Newsletters |
Newsletter Types | StockAdvisor: Starter Stocks Rule Breakers: High-Growth Stocks Rule Your Retirement: Index funds and ETFs Discovery: Cloud Disruptors: Cloud Computing Stocks |
Membership Fee | $99 to $1,999 per year |
Promotions | 30-Day Money-Back Guarantee |
Who Is Motley Fool?
The Motley Fool is a financial services and media company. It was founded in 1993 by brothers Tom and David Gardner. It offers a ton of free content on its website that includes blog posts, podcasts, discussion boards, and videos. Content and services are also available from its sister companies, which include:
- The Ascent
- Motley Fool Wealth Management
- Soapbox
- MFAM Funds
- Motley Fool Ventures
- The Blueprint
- Million Acres.
It offers a large number of premium (i.e., paid subscription) investment newsletters. Prices range from $99/yr up to $1,999/yr.
In this article, we’ll focus on the flagship Stock Advisor service, which has returned 504% since its inception compared to the S&P 500’s 104% during the same time frame.
What Do They Offer?
The Stock Advisor is where you can find David and Tom Gardner's top stock recommendations. Additionally, you get the following:
- Two new stock picks each month — the latest stock recommendations delivered monthly.
- Best Buys Now — 10 timely buys chosen from over 300 stocks.
- Starter Stocks — foundational stock recommendations for new and experienced investors.
- Community and investing resources — access to educational materials and a strong community of investors to help you improve.
The Stock Advisor service is well-rounded. You get two picks each month with a detailed report on those picks. If you are looking to enhance your investment acumen, reading the analysis that comes with each pick is a great way to do it.
You’ll get the inside scoop on why those picks are being chosen. That’s analysis you can apply to other picks that are not in the newsletter. There won’t be any need to take guesses on potential picks. Just apply what you’re learning from the Stock Advisor analysis when deciding to invest in stocks that weren't necessarily highlighted by the newsletter.
Access To Previous Picks
You’ll also be able to view previous picks as well. The Motley Fool wants to be transparent about its track record and does this by showing previous stock picks. Previous picks are another great opportunity to see what went right or wrong with those picks.
Also, once you sign up, you don’t have to wait until the next picks come out. You’ll gain immediate access to the most current picks.
Long-Term Investment Horizon
The Stock Advisor isn’t meant for day trading. The stock picks are intended for investors with a long-term investment strategy, meaning at least a couple of years. Learn the risks associated with day trading.
The Motley Fool stock picks aren’t just for retirement portfolios. They work just fine in taxable accounts as well.
Community Support
You’ll also have access to The Motley Fools’ investing community. In the community, you’ll find investors just like you and some with a lot of experience. This is great for people who don’t want to invest alone, want feedback on stock ideas, or just need a place to turn to for stock questions.
Bonus Reports
Sometimes the Stock Advisor service includes bonus information beyond what's promised in the subscription. While writing this article, the current bonus includes over nine reports. That’s a lot of additional analysis and education.
Related: The Best Portfolio Analysis Tools
Are There Any Fees?
Yes - Stock Advisor costs $99 per year. However, you get a 30-day free trial. If you don’t like the newsletter, you can cancel any time before the 30-day trial is up and receive a full refund of the membership fee.
Below is the pricing for Motley Fool's three other newsletters that are currently open to new members:
- Rule Your Retirement: $149/yr
- Rule Breakers: $299/yr
- Discovery: Cloud Disruptors: $1,999/yr
How Do I Open An Account?
You can visit the Motley Fool website to get started. A credit card number is required during the sign-up process.
Is My Money Safe?
Yes - you'll only be processing a credit card payment with The Motley Fool. There isn’t any money on deposit or invested with them. The Motley Fool website also uses encryption.
Is It Worth It?
If you don’t want to spend a ton of time researching stocks, subscribing to The Motley Fool’s stock-picking service could be a strong alternative. At $99/yr, the Stock Advisor service is affordable. Or if you prefer index fund and ETF investing, you could save even more money by subscribing to the "Rule Your Retirement" newsletter ($149/year) instead.
With all of Motley Fool's newsletters, you'll still need to make all the actual investing decisions yourself with your discount stock broker of choice. They do offer Wealth Management services, but the advisory fees for accounts less than $1 million range from 0.40% (for index fund and ETF portfolios) to 0.95% (for stock portfolios).
If DIY investing isn't your thing, you could probably save money in fees by choosing a top robo-advisor instead.
Motley Fool Features
Service | Premium Stock-Picking Newsletters |
Sisters Companies and Services |
|
Newsletter Types |
|
Membership Fee | $99 to $1,999 per year |
Wealth Management Pricing | Index funds portfolios: 0.40% Stock portfolios: 0.95% (for stock portfolios) For accounts less than $1 million range |
Customer Service Phone Number | (877) 629-2589 |
Customer Service Hours | Mon-Fri, 9 AM to 5 PM (ET) |
Customer Service Email | membersupport@fool.com |
Mobile App Availability | None |
Promotions | 30-Day Money-Back Guarantee |
Motley Fool Review
- Pricing and Fees
- Ease of Use
- Tools and Features
- Products and Services
- Customer Service
Overall
Summary
The Motley Fool is a financial advice company that has enjoyed a long history of success with providing paid stock-picking newsletters.
Pros
- Long track record of market-beating performance
- Access full history of previous picks
- Offers text and email stock alerts
Cons
- Could be an unnecessary service for passive investors
- Fees could represent a high percentage of assets for investing beginners
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.