Jim Cramer and his crew on the major financial news media networks are shilling stocks for themselves and their rich friends.
Reddit’s WallStreetBets had a few standout moments during the pandemic, but they’re long past their prime and trying to claw back a portion of the collective gains they once held.
FinTwit is full of crypto and pump-and-dump penny stock schemes.
Whom, then, can a newer investor looking to build a path towards financial freedom turn to for reliable, vetted, and valuable information about investing?
Enter: Motley Fool.
Motley Fool, which has supported investors for over two decades, is named after a court jester who can tell royalty how things truly are without fear of retribution. This is a model for Motley Fool’s honest, sometimes contrarian approach to investing knowledge.
The baseline Motley Fool philosophy is that the investor has a basket of ~25 diversified individual stocks they are comfortable holding for at least five years, irrespective of individual stock volatility.
Background aside, what about the service? Is Motley Fool legit?
Motley Fool offers a variety of financial products and services tailored to the investor’s risk tolerance, experience, and investing lifestyle.
Motley Fool’s flagship service, Stock Advisor, provides specific stock picks that they see as viable candidates for holding over time (remember, we’re investing for the future and not trading for a few quick bucks). These alerts are delivered over text or email according to your preferences, so you’re sure never to miss a potential opportunity.
As Motley Fool’s longest-running service, Stock Advisors has the most historical return data. And those returns are impressive. To date, Stock Advisor’s weekly picks have returned over 400%. And not only will they tell you what and when to buy, but Motley Fool will also send alerts when they determine a previously-picked stock does not meet investment criteria any longer and it is time to sell – either to realize gains or minimize losses.
Motley Fool’s other, newer offerings don’t have the depth of data, but their annualized returns are impressive nonetheless:
- Real Estate Winners: 21%
- Expands the scope of Motley Fool into the real estate game with Real Estate Investment Trust (REIT) suggestions and other opportunities.
- Rule Breakers: 234%
- Two additional monthly stock picks that are higher risk but higher reward. These are the 10x possibilities.
- Everlasting Stocks: 30%
- This “eternal portfolio” option gives buy-and-hold forever stock picks. This service is excellent if you’re trying to build generational wealth.
- Millionacres Moguls: 22%
- This next-level real estate offering offers premium picks and the opportunity to attend live events.
There must be a downside with exceptional returns like these, right?
There are a few.
The primary drawback to Motley Fool is that, if you’re a newer investor looking to learn and study the market truly, Motley Fool’s prescriptive stock picking strategy won’t force you to do due diligence and understand the underpinnings of what moves the market.
The good news is that they justify their picks and publish articles, podcasts, and other media that can help educate and inform you.
But if you’re semi-experienced and want to be more active and hands-on with your investments, Motley Fool might not be for you.
In addition to this possible structural downside, Motley Fool’s marketing campaigns are aggressive even after subscribing to their baseline service. It’s our bias, but it is a turnoff to see multiple upsell emails daily from a service you pay for. You can turn this off in the site’s settings, but it did leave a bad taste in our mouths.
So, Is Motley Fool Legit?
So, is Motley Fool legit?
With a proven track record, well-oiled picking and alert mechanisms, and plenty of service offerings for all risk tolerances and lifestyles, there is no doubt that Motley Fool is legit and a fantastic resource for new and experienced investors alike.
It’s important to remember that if you do subscribe to Stock Advisors, you follow both the prescriptive picks and the recommended holding period. It may be tempting to take early gains off the table, but Stock Advisors hit their huge return percentages by holding unless something fundamental in the initial analysis changed – that means you need to hold too.
Ready to get started with Motley Fool?
Click here for our exclusive new member pricing for Stock Advisor and start generating your own returns.