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Motley Fool Review [2016 to 2023] : Read First, Before Trying Stock Advisor or Rule Breakers!


Motley Fool Review [2016 to 2023] : Read First, Before Trying Stock Advisor or Rule Breakers!

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.

Motley Fool Stock Picks 2016 to Present

Best Picks (2016 to 2024)Return*Annualized Return
E-commerce Company3,214%80%
Computer Graphics Company2,873%60%
Advertising Tech Company2,154%54%
Cloud Database Company917%46%
Semiconductor Company904%33%
Cloud Software Company810%77%
Electric Car Company780%48%
Healthcare Tech Company749%54%
Cybersecurity Company702%35%
Freight Forwarding Company659%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 (read our review) and Rule Breakers (see our review) 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.

Motley Fool Review – Stock Advisor vs Rule Breakers Returns Over-time

Stock AdvisorRule BreakersWinner
3 Months8.34%9.48%+13.66%
6 Months19.72%21.27%+7.89%
9 Months31.69%33.57%+5.95%
1 Year42.53%42.48%+0.13%
2 Years100.13%113.27%+13.12%
3 Years153.44%152.91%+0.34%
4 Years208.65%342.65%+64.22%

Click here to See the Latest Stock Advisor Picks (May 25th, 2024)

Who had Better Long-term Performance?

Long-term Performance by 4th YrStock AdvisorRule BreakersWinner
New Recommendations107.21%146.13%+36.31%
Best Buys68.93%76.88%+11.53%
Foundational Stocks83.32%191.8%+130.19%
Blended Average86.49%138.27%+59.88%

The 3 Types of Stock Recommendations

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.

Who had the highest yielding best picks?

Best Picks from 2016 to 2021Stock AdvisorRule BreakersWinner
#1 Best Pick2,015%3,151%+56.43%
#2 Best Pick970%2,509%+158.49%
#3 Best Pick953%1,852%+94.39%
#4 Best Pick942%1,200%+27.43%
#5 Best Pick827%1,112%+34.5%

If $5000 Invested

  • $57,069 - Stock Advisor

  • $98,248 - Rule Breakers

Bundle Offer: Stock Advisor + Rule Breakers + Everlasting Stocks + Real Estate Winners. 1 Year for $319

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.

Stock Advisor Performance Review by Sector - 2016 to 2021

SectorReturn% of PicksAnnualized Return
Information Technology160%38%80%
Consumer Discretionary104%16%52%
Financials96%9%48%
Communication Services79%11%40%
Materials25%1%12%
Healthcare21%11%11%
Industrials9%10%5%

Rule Breakers Performance Review by Sector - 2016 to 2021

SectorReturn% of Picks+Annualized Return
Real Estate230%2%115%
Information Technology166%31%83%
Communication Services121%16%61%
Healthcare93%21%46%
Financials82%2%41%
Consumer Discretionary72%16%36%
Utilities57%2%29%

Click Here to See the Latest Rule Breakers Picks (as part of the Epic Bundle)

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Performance vs. The Market (Annualized)

Stock AdvisorRule BreakersWinner
Annualized Returns by 4th Yr
New Recommendations52.16%85.66%+64.22%
Best Buys17.23%19.22%+11.53%
Foundational Stocks20.83%47.95%+130.19%
Blended Average30.08%50.94%+69.39%
S&P 50016.67%16.67%+.%

Click here to See the Latest Stock Advisor Picks (May 25th, 2024)

New Recommendations

Stock AdvisorRule BreakersWinner
1 Year42.53%42.48%+0.13%
2 Years50.07%56.63%+13.12%
3 Years51.15%50.97%+0.34%
Blended Average47.91%50.03%+4.41%

Foundational Stocks

Stock AdvisorRule BreakersWinner
1 Year33.51%32.06%+4.51%
2 Years39.06%30.14%+29.6%
3 Years34.01%35.81%+5.29%
Blended Average35.53%32.67%+8.74%

Best Buys

Stock AdvisorRule BreakersWinner
1 Year40.31%45.13%+11.97%
2 Years41.43%42.86%+3.46%
3 Years32.68%34.82%+6.57%
Blended Average38.14%40.94%+7.35%

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.

Bundle Offer: Stock Advisor + Rule Breakers + Everlasting Stocks + Real Estate Winners. 1 Year for $319

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Tips on Getting Started Investing

  • Exercise due diligence: Prior to allocating capital to any investment, conduct comprehensive research to ensure a thorough understanding of the asset in question.

  • Consider enlisting a reputable subscription service: If uncertain about where to commence, a service like Motley Fool Stock Advisor can offer valuable guidance. This platform supplies stock selections and analyses from a skilled team of specialists, with a performance history of surpassing market averages.

  • Embrace diversification: When constructing a stock portfolio, incorporating a range of assets is crucial to mitigating risk.

  • Develop a strategic investment blueprint: Establishing and adhering to a well-defined plan enables discipline and minimizes the temptation to make hasty decisions that could result in financial setbacks.

  • Allocate a sensible budget: Determining a budget and remaining within its confines is essential for preventing excessive investment and mitigating unwarranted risk.

  • Cultivate patience: Patience is a virtue in the world of investing. Attempting to time the market is typically a futile endeavor, so exercise restraint and wait for opportunities to invest in robust companies with strong fundamentals at appealing valuations.

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More Stock Market Resources:

Did you know that…

  • Having a diversified portfolio can not only spread risk but also reduce the emotional impact of any single investment’s poor performance?

  • Life events, such as buying a home, having children, or approaching retirement, can influence and alter your investment time horizon?

  • Momentum investing involves buying stocks that have been performing well recently and selling those that have been performing poorly?

  • Overconfidence can make investors believe they can predict market movements or have unique insights, often leading to excessive trading and reduced returns?

  • The fear of missing out (fomo) can drive investors to jump into trending investments without proper due diligence, increasing risks?

Quotes of the Day:

“The best investors are those who are able to learn from their mistakes.” - Louis Bacon “Investing is not a science, it’s an art. There is no formula for success.” - Charles Brandes “The best way to invest is to focus on the long term and ignore the short-term noise.” - Jim Simons “The best way to predict the future is to study the past.” - Michael Burry “The most important thing in

Related Motley Fool Resources:

🧠 Thinking Deeper

  • ☑️
    Be emotionally prepared for potential losses. If you can't handle them, you may need to adjust your strategy.
  • ☑️
    Think not just about making money, but about creating lasting, multi-generational wealth.
  • ☑️
    Take intelligent risks, but never risk more than you can afford to lose.
  • ☑️
    Create a solid financial plan and stick to it. Consistency often trumps brilliance in investing.

📚 Wealthy Wisdom

  • The secret to investing is to figure out the value of something and then pay a lot less. - Joel Greenblatt
  • ✔️
    Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it. - Peter Lynch
  • 🌟
    An investment in knowledge pays the best interest. - Benjamin Franklin
  • 🚀
    The biggest risk of all is not taking one. - Mellody Hobson