Finance News

Motley Fool – Recommendations and Returns

By Jeremy Biberdorf

Posted on April 3, 2021

The Motley Fool, a stock advice company, sports an endearing image: jesters, clowns, free-wheeling brokers who make their recommendations off the cuff. But this is hardly the actual case. Started in 1993 by David and Tom Gardner, Fool has been a stalwart in a field that has had its shares of ups and downs since its inception.

What the folks at The Motley Fool do well is adapt. They made it through the tech bubble of the early 2000s scathed, but alive. They powered through the 2008 housing crisis. And now they are on the forefront of making trendy, though solid, stock picks.

This article will focus on what makes The Motley Fool’s stock recommendations stand out in a field that grows more clogged with “professional” advice and robo-advisors.

What separates The Motley Fool from its contemporaries is the company’s emphasis on research. While many advice platforms base their recommendations off of graphs, and charts, which may show objective trends, The Motley Fool digs into companies. Instead of superficial assumptions, the experts at The Motley Fool become intimate with the spirits and ethos of whatever company makes their lauded Stock Advisor recommendation list.

Let’s take a closer look at some of their recommendations and their analyses behind the picks.

The Motley Fool recommends two stocks each month through its Stock Advisor program. This is considered their “flagship” service, so to protect its integrity, the team at The Motley Fool make sure to get these picks right, or at least give you a very solid, educated guess.

The Motley Fool’s Recommendations (Q4 2020)

Pinterest (NASDAQ: PINS) – This stock was recommended by Tom Gardner in October 2020. Since, its stock has soared. Tom showed real vision by noticing Pinterest as a “unique platform” amidst the slew of social medias.
Autodesk (NASDAQ: ADSK) – This stock was also recommended by Tom Gardner in October 2020. Tom sees Autodesk as having a broad global market, as the need for computer-aided design continues to grow. Again, Tom is thinking into the future.
Fiverr International (NASDAQ: FVRR) – This stock was recommended by The Motley Fool in November 2020. It’s a bit taboo to make money off the COVID pandemic, but Fiverr offers robust freelancing software for a world that is becoming more and more about remote employment. Again, The Motley Fool is speculating about the future in a reasonable manner.
Zebra Technologies (NASDAQ: ZBRA) – This is another stock recommended in November 2020. Tipped by David Gardner, he identified Zebra Technologies as having a chokehold on their respective market (barcode printing). David sees this market dominance resulting in a steady incline over the next several years.
Lemonade Inc. (NASDAQ: LMND) – This company’s stock was recommended by Tom in December 2020. This pick illustrates everything that goes into a Motley Fool recommendation: Tom researched the company and found exceedingly high levels of customer satisfaction coupled with a passionate, quirky CEO. With solid financials, this insurance company is poised for future success.

The Texture of Fool’s Picks

There is a running theme here: each pick is measured against a speculative future. What’s more: each pick has been carefully researched, felt out, and considered.

And the numbers don’t lie. The Motley Fool works to make stock picks shine for investors looking to create passive, long-term, and relatively risk-free portfolios. Their recommended investment strategies have been impressive: with recent returns at an average of 36%, this is well above the S&P average, and shows that the folks at The Motley Fool have a bead on the market.

The Human Touch

Depending on which side of the ideological divide you fall, this may be good or bad. But the fact is, The Motley Fool uses a bit of old-world logic when it comes to their stock picks. Many investment options, such as robo or auto-advisors, depend exclusively on algorithmic data. A computer crunches the numbers, which are considered the reality of things, or at least, the best possible conjecture.

Motley Fool may look at numbers as well, but they also put in some old school diligence. They talk to people. They look at what customers are saying. Essentially, they feel out a company before jumping to any conclusions. Their Stock Advisor recommendations are the result of human know-how.

Concluding Words

In an uncertain economic climate, everyone is searching for easy ways to make extra money. In times of financial contrast, investing may not seem like the right thing to do. But try to think of things a little differently: you are not spending your money, you are investing it, with your sights on a return. If ever there was a ripe time for investment, it may be now, as the world figures itself out.

Sober action like investing for long-term growth may not have the thrill of winning the lottery, but it is your best bet (stress on the word “bet”) for a relaxing, stress-free future.

An investment platform like The Motley Fool is just the place for seamless, fun, safe and easy investment opportunities.