The Motley Fool is a stock advice company established in 1993 by brothers Tom and David Gardner and is based in Alexandria, Virginia. After starting off as a publisher of various guides and investment advice, in 2002 they launched their main product, Stock Advisor, and later added their Rulebreaker service.
Since then, it has become one of the most popular stock picking services availabl3 on the internet. With a low first year fee of just $99 to subscribe to their flagship Stock Advisor service, followed by $199 per year after that, and the slightly strange company name, you could be excused for thinking this is some cheap unproven service trying to attract investors with their low costs.
But you would be wrong.
From inception in 2002 of their Stock Advisor service right up to today, the average return if you followed The Motley Fools stock picks would be 494%. That sounds impressive on its own but stands out even further when compared to the S & P 500 average over the same period of just 133%.
Their Rulebreaker service has been available over the last 15 years and has an impressive record too. Since its inception, the average return is 264% compared to the S & P 500 with just 114%. It is a more expensive service at $299/year, but also with a first-year cost of just $99. See how the two services compare.
Sure, those returns seem remarkable, and past returns are no guarantee of future returns. However, they do give a pretty good indication that The Motley Fool has been consistently outperforming the market. With Stock Advisor, that’s over a 20-year period.
The Motley Fool make it quite clear that investors following their advice should be prepared to hold the stocks for 2 – 5 years or longer to truly benefit from the expected growth of each stock they have picked.
They don’t always get it right, but they don’t try and hide their bad picks. They do provide reasons for why some stocks are performing poorly as much as they provide the reasons why some stocks are performing well. They’re not afraid to recommend selling a stock they have previously promoted.
The Motley Fool track record is certainly worth considering.
So How Does their Track Record Look?
Let’s start off by looking at their best picks, with their returns calculated from the date recommended up to now.
Best Stock Advisor Picks from 2011 – 2016
- An electric vehicle company – +13,474% or 1,457% annualised return
- An e-commerce company – +1,984% or 355% annualised return
- A tech manufacturing company – +1,566% or 147% annualised return
- A streaming company – +1,147% of 132% annualised return
- A dating company – +1.061% or 182% annualised return
Best Picks Stock Advisor from 2017 to 2022
- An ad tech company – +1,190% or 275% annualised return
- An electric vehicle company – +905% or 417% annualised return
- A GPU/Chip company – 815% or 160% annualised return
- Fortinet (NTNT) – +755% or 156% annualised return
- Zscaler – 536% or 161$ annualised return.
Best Rulebreaker Picks from 2011 to 2016
- An electric vehicle company – +13,462% or 1,331% annualised return
- An ecommerce company – +3,104% of 517% annualised return
- A decking company – +2,357% or 246% annualised return
- An international ecommerce company – +1,206% or 120% annualised return
- A boutique ecommerce company – +1.101% or 210% annualised return
Both Stock Advisor and Rulebreakers provide two stock picks per month but have different investment philosophies.
The Stock Advisor service has two investment teams led by each of the Gardner brothers. The two teams work on different investing philosophies.
David’s team focuses on stocks which they believe represent “unquantifiable greatness”, based on long-term market trends. Tom’s team concentrates on stocks with an excellent management team, a strong financial performance, and has a presence in underrated industries.
The Rulebreakers service picks stocks that are industry disrupters. They either have a unique management team, or they are bringing something new to the market. Most tend to be technology companies and the volatility is far greater, however the returns reflect the quality of the stock picking.
Those are impressive results.
But what are their best picks ever from 2002 right up to today?
Best Picks from Stock Advisor and Rulebreakers from 2002 to 2022
- Netflix – +20.374% or 1,208% annualised return
- Amazon.com – +19,644% or 1,012% annualised return
- NVIDIA – +14,264% or 847% annualised return
- Tesla – +13,642% or 1,457% annualised return
- Booking – +8,639% or 487% annualised return
The Motley Fool Stock Advisor service recommends that new investors start by building up a portfolio of 15 stocks. This is designed for you to diversify investment risk while also maximizing potential growth.
There is a list of 10 Starter Stocks which are intended to act as an anchor for your portfolio. These stocks are picked on their ability to survive market downturns and provide growth over the long-term.
It is recommended that you include at least 3 of these Starter Stocks among the first 15 stocks you purchase.
Here you can read a detailed review of Motley Fool
So, is The Motel Fool track record inspiring enough to make you want to check it out further?
If you would like to sign up to The Motley Fool, you can go to this link