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 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 (see our review) and Rule Breakers (in-depth 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 Advisor | Rule Breakers | Winner | |
---|---|---|---|
3 Months | 8.34% | 9.48% | +13.66% |
6 Months | 19.72% | 21.27% | +7.89% |
9 Months | 31.69% | 33.57% | +5.95% |
1 Year | 42.53% | 42.48% | +0.13% |
2 Years | 100.13% | 113.27% | +13.12% |
3 Years | 153.44% | 152.91% | +0.34% |
4 Years | 208.65% | 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 Yr | Stock Advisor | Rule Breakers | Winner |
---|---|---|---|
New Recommendations | 107.21% | 146.13% | +36.31% |
Best Buys | 68.93% | 76.88% | +11.53% |
Foundational Stocks | 83.32% | 191.8% | +130.19% |
Blended Average | 86.49% | 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 2021 | Stock Advisor | Rule Breakers | Winner |
---|---|---|---|
#1 Best Pick | 2,015% | 3,151% | +56.43% |
#2 Best Pick | 970% | 2,509% | +158.49% |
#3 Best Pick | 953% | 1,852% | +94.39% |
#4 Best Pick | 942% | 1,200% | +27.43% |
#5 Best Pick | 827% | 1,112% | +34.5% |
If $5000 Invested
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$57,069 - Stock Advisor
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$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
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% |
Rule Breakers Performance Review by Sector - 2016 to 2021
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 (as part of the Epic Bundle)
Performance vs. The Market (Annualized)
Stock Advisor | Rule Breakers | Winner | |
---|---|---|---|
Annualized Returns by 4th Yr | |||
New Recommendations | 52.16% | 85.66% | +64.22% |
Best Buys | 17.23% | 19.22% | +11.53% |
Foundational Stocks | 20.83% | 47.95% | +130.19% |
Blended Average | 30.08% | 50.94% | +69.39% |
S&P 500 | 16.67% | 16.67% | +.% |
Click here to See the Latest Stock Advisor Picks (May 25th, 2024)
New Recommendations
Stock Advisor | Rule Breakers | Winner | |
---|---|---|---|
1 Year | 42.53% | 42.48% | +0.13% |
2 Years | 50.07% | 56.63% | +13.12% |
3 Years | 51.15% | 50.97% | +0.34% |
Blended Average | 47.91% | 50.03% | +4.41% |
Foundational Stocks
Stock Advisor | Rule Breakers | Winner | |
---|---|---|---|
1 Year | 33.51% | 32.06% | +4.51% |
2 Years | 39.06% | 30.14% | +29.6% |
3 Years | 34.01% | 35.81% | +5.29% |
Blended Average | 35.53% | 32.67% | +8.74% |
Best Buys
Stock Advisor | Rule Breakers | Winner | |
---|---|---|---|
1 Year | 40.31% | 45.13% | +11.97% |
2 Years | 41.43% | 42.86% | +3.46% |
3 Years | 32.68% | 34.82% | +6.57% |
Blended Average | 38.14% | 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
Tips on Getting Started Investing
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Exercise due diligence: Prior to allocating capital to any investment, conduct comprehensive research to ensure a thorough understanding of the asset in question.
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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.
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Embrace diversification: When constructing a stock portfolio, incorporating a range of assets is crucial to mitigating risk.
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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.
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Allocate a sensible budget: Determining a budget and remaining within its confines is essential for preventing excessive investment and mitigating unwarranted risk.
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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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Did you know that…
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Having a diversified portfolio can not only spread risk but also reduce the emotional impact of any single investment’s poor performance?
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Life events, such as buying a home, having children, or approaching retirement, can influence and alter your investment time horizon?
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Momentum investing involves buying stocks that have been performing well recently and selling those that have been performing poorly?
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Overconfidence can make investors believe they can predict market movements or have unique insights, often leading to excessive trading and reduced returns?
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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:
- •Check out the latest Motley Fool stock picks.
- •Explore our comprehensive Motley Fool Stock Advisor Review.
- •See our recommendations for the Best Investment Subscriptions.
- •Secure the best Motley Fool discounts and promotions.
🧠 Thinking Deeper
- ☑️ Believe in your ability to understand the market. It's not as complicated as it might seem.
- ☑️ Develop the ability to tune out market noise and focus on what truly matters.
- ☑️ Judge your investing success by your progress toward personal financial goals, not by beating benchmarks.
- ☑️ Don't expect constant excitement from your portfolio. Sustainable growth is often slow and steady.
📚 Wealthy Wisdom
- ✨ The only value of stock forecasters is to make fortune tellers look good. - Warren Buffett
- ✔️ The biggest risk of all is not taking one. - Mellody Hobson
- 🌟 In the short run, the market is a voting machine but in the long run, it is a weighing machine. - Benjamin Graham
- 🚀 The individual investor should act consistently as an investor and not as a speculator. - Benjamin Graham
📘 Table of Contents
- • Motley Fool Stock Picks 2016 to Present
- • Motley Fool Review – Stock Advisor vs Rule Breakers Returns Over-time
- • Who had the highest yielding best picks?
- • Stock Advisor Performance Review by Sector - 2016 to 2021
- • Rule Breakers Performance Review by Sector - 2016 to 2021
- • Performance vs. The Market (Annualized)
- • Tips on Getting Started Investing
- • More Stock Market Resources: