The folks at The Motley Fool have always been a little different. In effect, Fool’s founders David and Tom Gardner have compiled individual fortunes by not sticking to conventional wisdoms. Marching to the beat of their own drum has shown returns which far outpace the S&P 500 average.
If their name is any indication, Fool does not take itself too seriously. And this may just work to their advantage. Founded all the way back in 1993, Fool has been through everything that the modern stock market could throw at them: the highs which preceded the dot-com bust, and the lows which followed; the horror of the 2008 global financial crisis, and it’s quietly jubilant aftermath; the COVID-19 pandemic and all the uncertainty and change it has ushered in.
And the Fool has just kept on smiling. Acknowledging that there may be no sure way to beat the market, this is a stock advisor program which stresses a long-term investment strategy, a “buy and hold” ethos predicated on making solid, albeit sometimes quirky stock choices. No get-rich-quick scheme, the Fool is for investors of all stripes who are looking towards preparing a better, more secure future.
Motley Fool’s “Rules Breaker” program accentuates what the company is all about. By focusing on what Modest Money’s Bob Haegele calls “industry disruptors” rather than existing household names, Fool lets their offbeat intuitions turn into profits. Some famous picks in this vein have been Tesla, Facebook, and Etsy, all companies which have broken the rules and initially surprised consumers with novel products.
Following Rules Breaker picks is a little different than using the company’s tried and true “Stock Advisor” offering. Rules Breaker picks are by nature riskier, and they tend to favor tech companies above all else.
Stock Advisor may still be the best bet for those sticking to a long-term, buy-and-hold plan. Rules Breaker deviates from Fool’s usual methods slightly, and as such, could be an appealing option for those looking for faster returns.
Let’s take a closer look at The Motley Fool’s Rules Breaker portfolio.
Breaking Rules and Taking Names
- High Volatility Stocks: The Motley Fool’s Rules Breakers stocks tend to be highly volatile, as they are primarily of the hyper-growth variety, emphasizing innovations within the tech industry. As such, investors are likely to see lots of ups and downs with these picks.
- Impressive Record: despite the rather uncertain nature of these Rules Breakers picks, Fool’s track record is still impressive and reassuring. On average, Rules Breakers picks outpace the market average ten times over. Sure, there can be a dud or two, but there are also unearthed gems which can lead to amazing four-figure growth.
- Incredible Value: like all of The Motley Fool’s offerings, we consider Rules Breakers a relative bargain. At a list price of $199/year, one is bound to profit if the folks at Fool continue their storied run on some of the best, underappreciated stocks on the market. If history is any indication, $199 starts looking like chump change.
Diversify, Diversify, Diversify
We cannot repeat this word enough. Diversification is key to managing risks, and with general market risks and fluctuations affecting nearly all stocks, bonds, and exchange-traded funds (ETFs), it’s best to have the money in your portfolio spread across sectors and asset classes.
And working with The Motley Fool’s Rules Breakers is clearly no different. With a mere 24 stocks chosen per year, it would be foolish to only invest in these high potential, albeit volatile picks.
We find that Rules Breakers picks work best when combined with the kind of stable, household names which frequently crop up in Fool’s Stock Advisor portfolio. By combining the best of both worlds, your portfolio will be poised for sustained success while taking advantage of Fool’s insight into the here and now.
The Motley Fool – Fool or Seer?
Can we distinguish between the two? Perhaps, but ironically enough, the motley fool, or what is commonly called a court jester, was, in addition to his capacity to entertain with music and song, a master storyteller. And stories are not merely a means of entertainment; as students of literature well know, stories provide us with a means of seeing things differently, of estranging us from our common perception of things, so that we return to the world with a renewed sense of life.
The folks at The Motley Fool, despite the cheeky name, are no fools: their picks are well researched and their success is generated by a combination of know-how, intuition, and old-fashioned work ethic. Rule Breakers stock picks are the result of seeing the world of investment a little differently than the rest of us.
We can recommend Fool’s Rule Breakers in much the same way we do their more famous Stock Advisor feature, but with the simple advisory warning: these picks straddle the knife-edge of common reason, which results in a kind of general boom or bust profile.