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!

By TraderHQ Staff

Published

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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.

Motley Fool Stock Picks 2016 to Present

Best Picks (2016 to 2024)Return*Annualized Return
E-commerce Company3,202%80%
Computer Graphics Company3,179%62%
Advertising Tech Company2,236%57%
Semiconductor Company969%35%
Cloud Database Company964%47%
Electric Car Company831%50%
Cloud Software Company813%77%
Healthcare Tech Company749%54%
Cybersecurity Company718%35%
Freight Forwarding Company656%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.

Motley Fool Review – Stock Advisor vs Rule Breakers

Returns Over-timeStock AdvisorRule BreakersWinner
3 Months8.34%9.48%+13.66% Rule Breakers
6 Months19.72%21.27%+7.89% Rule Breakers
9 Months31.69%33.57%+5.95% Rule Breakers
1 Year42.53%42.48%+.13% Stock Advisor
2 Years100.13%113.27%+13.12% Rule Breakers
3 Years153.44%152.91%+.34% Stock Advisor
4 Years208.65%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 19th, 2024)

Who had Better Long-term Performance?

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

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 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

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 (Apr 19th, 2024)

Performance vs. The Market (Annualized)

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

Click here to See the Latest Stock Advisor Picks (Apr 19th, 2024)

New RecommendationsStock AdvisorRule BreakersWinner
1 Year42.53%42.48%+.13% Stock Advisor
2 Years50.07%56.63%+13.12% Rule Breakers
3 Years51.15%50.97%+.34% Stock Advisor
Blended Average47.91%50.03%+4.41% Rule Breakers
Foundational StocksStock AdvisorRule BreakersWinner
1 Year33.51%32.06%+4.51% Stock Advisor
2 Years39.06%30.14%+29.6% Stock Advisor
3 Years34.01%35.81%+5.29% Rule Breakers
Blended Average35.53%32.67%+8.74% Stock Advisor
Best BuysStock AdvisorRule BreakersWinner
1 Year40.31%45.13%+11.97% Rule Breakers
2 Years41.43%42.86%+3.46% Rule Breakers
3 Years32.68%34.82%+6.57% Rule Breakers
Blended Average38.14%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.

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

Tips on Getting Started Investing

  1. Exercise due diligence: Prior to allocating capital to any investment, conduct comprehensive research to ensure a thorough understanding of the asset in question.
  2. 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.
  3. Embrace diversification: When constructing a stock portfolio, incorporating a range of assets is crucial to mitigating risk.
  4. 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.
  5. Allocate a sensible budget: Determining a budget and remaining within its confines is essential for preventing excessive investment and mitigating unwarranted risk.
  6. 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.
Tips on Getting Started Investing

More Stock Market Resources:

Did you know that...

  • The retail sector can face challenges in a high-interest rate environment as consumers may cut back on spending due to higher credit card interest rates?
  • Sectors with low debt and strong cash reserves might be better positioned to weather the challenges of a rising interest rate environment?
  • If the market is consistently rising, dca might result in a lower overall return compared to investing a lump sum at the start?
  • Stocks with high short interest can be subject to 'short squeezes' if positive news triggers a rapid price increase?
  • Chasing past performance often results in buying high and selling low, the exact opposite of a winning investment strategy?

Quotes of the Day:

  • "The most important thing in investing is to preserve capital." - David Einhorn
  • "The best investment opportunities are often found in times of crisis." - Mohnish Pabrai
  • "The investor's chief problem - and even his worst enemy - is likely to be himself." - John Templeton
  • "The best investment strategy is to buy great companies when the market is in a bad mood." - Martin Zweig
  • "Investing is about finding value where others do not see it." - Edward Lampert

*Disclaimer: Unless noted otherwise all returns are as of Apr 17, 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.