![Motley Fool Review [2016 to 2023] : Read First, Before Trying Stock Advisor or Rule Breakers!](/media/motley-fool-review.webp)
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The Motley Fool is a well-known investment company that provides stock recommendations and other financial guidance through its website and various subscription services. The company was founded in 1993 by brothers David and Tom Gardner, and it has become one of the most respected names in the investing world.
One of the Motley Fool's most popular services is Stock Advisor, which provides subscribers with stock picks and market analysis from a team of expert analysts. The service has an impressive track record, with its picks outperforming the market by an average of about 3x since its inception. Another popular Motley Fool service is Rule Breakers, which focuses on identifying disruptive company's that are poised for strong growth.
Stock Advisor is the company’s original service. You get two stock recommendations each month, and access to a searchable archive of past recommendations. The Motley Fool’s analysts research and recommend stocks that they believed will outperform the market over the long-term.
| Best Picks (2016 to 2024) | Return* | Annualized Return |
| E-commerce Company | 3,214% | 80% |
| Computer Graphics Company | 2,873% | 60% |
| Advertising Tech Company | 2,154% | 54% |
| Cloud Database Company | 917% | 46% |
| Semiconductor Company | 904% | 33% |
| Cloud Software Company | 810% | 77% |
| Electric Car Company | 780% | 48% |
| Healthcare Tech Company | 749% | 54% |
| Cybersecurity Company | 702% | 35% |
| Freight Forwarding Company | 659% | 34% |
Of course, past performance is no guarantee of future results, but it does show that the Motley Fool’s stock picks have been quite successful.
In this Motley Fool review, we'll analyze the company's Stock Advisor and Rule Breakers services from 2016-2021 to see how they've performed in terms of stock picking. Results are calculated from recommendation date to 12/31/2021. We'll compare their performance against the S&P 500 to get a complete picture of what investing in Motley Fool stock picks actually looks like.
| Returns Over-time | Stock Advisor | Rule Breakers | Winner |
| 3 Months | 8.34% | 9.48% | +13.66% Rule Breakers |
| 6 Months | 19.72% | 21.27% | +7.89% Rule Breakers |
| 9 Months | 31.69% | 33.57% | +5.95% Rule Breakers |
| 1 Year | 42.53% | 42.48% | +.13% Stock Advisor |
| 2 Years | 100.13% | 113.27% | +13.12% Rule Breakers |
| 3 Years | 153.44% | 152.91% | +.34% Stock Advisor |
| 4 Years | 208.65% | 342.65% | +64.22% Rule Breakers |
| 15%+ Returns at 1 Year | 74.23% | 79.38% | +6.94% Rule Breakers |
| 50%+ Returns at 1 Year | 47.42% | 51.55% | +8.7% Rule Breakers |
| 3x Returns by 4th Yr | 8.25% | 15.46% | +87.5% Rule Breakers |
| 10x Returns by 4th Yr | 1.03% | 5.15% | +400% Rule Breakers |
Click here to See the Latest Stock Advisor Picks (Apr 20th, 2024)
| Long-term Performance by 4th Yr | Stock Advisor | Rule Breakers | Winner |
| New Recommendations | 107.21% | 146.13% | +36.31% Rule Breakers |
| Best Buys | 68.93% | 76.88% | +11.53% Rule Breakers |
| Foundational Stocks | 83.32% | 191.8% | +130.19% Rule Breakers |
| Blended Average | 86.49% | 138.27% | +59.88% Rule Breakers |
Both services have the same general structure offering three different types of recommendations each with a different purpose.
The main focus of each service revolves around the new recommendations. Two new recommendations come out monthly and are meant to be the stocks that provide alpha or growth to a portfolio.
The next type are the "Best Buys" or "timely" stocks, which Stock Advisor releases bi-weekly, five per release. Rule Breakers in contrast releases five just once per month. The purpose of these recommendations are for those who are looking to dollar cost average into past recommendations or for those looking to diversify a bit more.
These picks are believed to be the most timely opportunities from past recommendations. This is also a great way for members to see which are the highest conviction stocks on a monthly basis.
The final type are the foundational stocks or what the Fool previously referred to as "starter stocks". These 10 recommendations come out just once per year, in Q1 and meant to provide a strong base of stability as well as growth to new and established portfolios.
These recommendations tend to be stocks that are more established, have good earning power and much less volatility than the new recommendations. They won't provide the high growth that the new recommendations are meant to provide but they help to diversify a portfolio.
| Best Picks from 2016 to 2021 | Stock Advisor | Rule Breakers | Winner |
| #1 Best Pick: | 2,015% | 3,151% | +56.43% Rule Breakers |
| #2 Best Pick: | 970% | 2,509% | +158.49% Rule Breakers |
| #3 Best Pick: | 953% | 1,852% | +94.39% Rule Breakers |
| #4 Best Pick: | 942% | 1,200% | +27.43% Rule Breakers |
| #5 Best Pick: | 827% | 1,112% | +34.5% Rule Breakers |
| If $5000 Invested | $57,069 | $98,248 | +72.16% Rule Breakers |
One of the differences between the two services is the type of stocks that they focus on. Stock Advisor tends to focus on a much broader market, top to bottom, still growth oriented but just not entirely tech. While Rule Breakers is really a high growth, innovation and first to market type of focus which tends to be more tech.
| Sector | Return | % of Picks | Annualized Return |
| Information Technology | 160% | 38% | 80% |
| Consumer Discretionary | 104% | 16% | 52% |
| Financials | 96% | 9% | 48% |
| Communication Services | 79% | 11% | 40% |
| Materials | 25% | 1% | 12% |
| Healthcare | 21% | 11% | 11% |
| Industrials | 9% | 10% | 5% |
| Sector | Return | % of Picks | +Annualized Return |
| Real Estate | 230% | 2% | 115% |
| Information Technology | 166% | 31% | 83% |
| Communication Services | 121% | 16% | 61% |
| Healthcare | 93% | 21% | 46% |
| Financials | 82% | 2% | 41% |
| Consumer Discretionary | 72% | 16% | 36% |
| Utilities | 57% | 2% | 29% |
Click Here to See the Latest Rule Breakers Picks (Apr 20th, 2024)
| Annualized Returns by 4th Yr | Stock Advisor | Rule Breakers | Winner |
| New Recommendations | 52.16% | 85.66% | +64.22% Rule Breakers |
| Best Buys | 17.23% | 19.22% | +11.53% Rule Breakers |
| Foundational Stocks | 20.83% | 47.95% | +130.19% Rule Breakers |
| Blended Average | 30.08% | 50.94% | +69.39% Rule Breakers |
| S&P 500 | 16.67% | 16.67% | +.% Rule Breakers |
Click here to See the Latest Stock Advisor Picks (Apr 20th, 2024)
| New Recommendations | Stock Advisor | Rule Breakers | Winner |
| 1 Year | 42.53% | 42.48% | +.13% Stock Advisor |
| 2 Years | 50.07% | 56.63% | +13.12% Rule Breakers |
| 3 Years | 51.15% | 50.97% | +.34% Stock Advisor |
| Blended Average | 47.91% | 50.03% | +4.41% Rule Breakers |
| Foundational Stocks | Stock Advisor | Rule Breakers | Winner |
| 1 Year | 33.51% | 32.06% | +4.51% Stock Advisor |
| 2 Years | 39.06% | 30.14% | +29.6% Stock Advisor |
| 3 Years | 34.01% | 35.81% | +5.29% Rule Breakers |
| Blended Average | 35.53% | 32.67% | +8.74% Stock Advisor |
| Best Buys | Stock Advisor | Rule Breakers | Winner |
| 1 Year | 40.31% | 45.13% | +11.97% Rule Breakers |
| 2 Years | 41.43% | 42.86% | +3.46% Rule Breakers |
| 3 Years | 32.68% | 34.82% | +6.57% Rule Breakers |
| Blended Average | 38.14% | 40.94% | +7.35% Rule Breakers |
The Motley Fool is a well-respected investment advice company that has a strong track record of successful stock picking. The company's Stock Advisor and Rule Breakers services have both outperformed the market by a wide margin, making them two of the best investment choices available. If you're looking for solid investment advice, the Motley Fool is definitely worth considering.
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*Disclaimer: Unless noted otherwise all returns are as of Apr 19, 2024. Past performance is no guarantee of future results. Individual investment results may vary. All investing involves risk of loss.
We provide general information, not investment advice. Some of the links on this page are affiliate links in which we receive a commission when a purchase is made.
$89 promotional price for new members only. $110 discount based on current list price of Stock Advisor of $199/year. Membership will renew annually at the then current list price.
$99 promotional price for new Rule Breakers members. $200 discount based on current list price for Rule Breakers of $299. Membership will renew annually at the then current list price.