in Stock Market

Motley Fool Review: Is it worth it? (Here are the facts)

Motley Fool Review Image

In this Motley Fool review, I’m going to uncover exactly what you really want to know about the Stock Advisor (SA) service.

Is it worth the money?!?

I’ll give you my honest opinion and then you can be the judge.

But don’t worry, I’ll cover everything from the good, the bad and the ugly.

I’ll even dive into the details and show you some screenshots of the actual product.

So, keep reading to find out.

You probably already know a little bit about the Motley Fool and their products.

You may have seen some posts or articles on social media where they provide insights on the stock market.

However, here’s a brief recap of what they do:

The Motley Fool is a stock picking service whose primary goal is to help you take control of your future and become financially free.

It’s often viewed as the best stock picking service.

They claim to have achieved a staggering 356% return since inception!

The Motley Fool Review Performance

It was founded by David and Tom Gardner in 1993.

The Fool’s stock advisor service has only one purpose – to help the world invest, better.

The Stock Advisor (SA) is Motley Fool’s flagship product.

Every month, the Gardner brothers present 12 US stock recommendations that are sent via e-mail and available on their website.

Pro Tip: Right now, the Motley Fool Stock Advisor service is only $199.00/year

$99.00/year 

Click Here to take advantage.

*this offer won’t last long

Here’s how it works:

  • Every first Thursday of the month, Tom presents one stock recommendation.
  • Every second Thursday of the month, David presents one stock recommendation.
  • Every third Thursday of the month, Tom presents five stock recommendations.
  • Every fourth Thursday of the month, David presents five stock recommendations.

Fool Email Screenshot

As you might’ve noticed, Thursday is key.

That’s when fresh new stocks become available for you to trade.

Think of this service as a Hollywood movie.

The cop (you) knows a confidential informant (The Motley Fool)

The informant has all the juice (the good stocks to buy) and shares that information with you.

It all happens in the underground world (the stock market).

jackie chan

Since these stocks have already been analyzed and reviewed for you, all you have do is to invest!

It makes life easy.

If you have doubts about one of their suggestions or would like to know more about that stock; you can always pull up the coverage page which will display the analysis of the stock.

If you don’t have time to read the article, you can look on the right panel where they give a “1-Minute” presentation.

I love that feature!

Stitch fix recommendation

So, why should you care?

Simply because it can change your financial future.

Not all of us have time nor the skills to scout and analyze the best stocks to invest in.

The Stock Advisor (SA) subscription is tailored to the Individual Investor.

I will explain why later on in this Motley Fool Review.

What do you get?

As a Stock Advisor (SA) member, you’ll have access to all current and historical best stocks to buy.

The suggested stocks also come with related articles if you wish to read more on the suggestions.

performance analyser screenshot

You’ll also get access to their “Favorites” page, which will track stocks you are interested in.

It also includes “Instant alerts” They will send you an instant alert as soon as one of these events occurs to stock in your list:

  • New buy alerts
  • When it is time to sell (this is huge!)
  • Large price changes

my favorites screenshot

Additionally, you’ll get have access to the Fool’s research page, which presents premium articles and reports that cover most US stocks.

Their reports page is very interesting and presents numerous trending topics in our society such as virtual reality and self-driving cars.

For example, they released a playbook that presents a few stocks that could benefit from Trump’s presidency!

profit playbook screenshot

This page is useful for creating a bridge between investing and the innovative/trending topics of our time.

The Stock Advisor (SA) also includes access to the community page, where you can use discussion boards to communicate with other Fools.

Another interesting concept is the “Foolish Companies”, where the boards are company-based.

These boards are available to premium Fool members and can be useful for talking about investing strategies with fellow community members.

Is it a scam or is it legit?

The Motley Fool & their Stock Advisor (SA) service is DEFINITELY NOT a scam.

People may get the wrong impression if they stumble upon tweets like these:

Motley Fool scam Tweets

However, you can find those tweets about anything these days!

The fact is, the Motley Fool is a has been in business since 1993 and employs 250+ people.

Not to mention I’ve been a customer for over 3 years and have not seen any reason to think it’s a scam. (more on that later)

Of course, as an investor, you should do your own due-diligence and investigate the company before taking any of their investment advice.

But, for the sack of my motley fool review, here are “some” of my findings:

  1. There’s no question is a legit company that is very well among investors in the finance/trading community.

2. They even have their own mutual fund, which is the “Motley Fool Global Opportunities Fund Investor Shares (FOOLX)”

3. Also, the Fool Brothers don’t try to hide from their customers. Which is always a good sign.

They are very active in the investment community.

For example, they often have interesting ideas on their certified Twitter page.

As i’m writing this article, the market is currently having its worst day in 8 months.(yikes!)

The Motley Fool just tweeted an idea on two blue chip stocks that can help us through this market downturn. Thank you Fool brothers!

The Gardner brothers are also active in the traditional media where they appear on news websites such as AOL News.

Here is an interesting piece on their ups and downs with Amazon.com (they first purchased it in September 1997!)

Amazon office

Now, regarding their Stock Advisor (SA) service, you’re not the first one to have asked this question.

I’ve subscribed the Fool’s Stock Advisor (SA) service for more than 3 years now and I can again reassure you that this is not a scam.

Like many other financial and investment research firm, The Motley Fool has a stock advising service that can be canceled at any time.

Here another testimonial from a customer given on Stackexchange, proving even more how it’s not a scam.

“I’ve had a MF Stock Advisor for 7 or 8 years now, and I’ve belong to Supernova for a couple of years. I also have money in one of their mutual funds. “The Fool” has a lot of very good educational information available, especially for people who are new to investing. Read full testimonial

Now that we’ve beaten that myth to death, let me tell you what you really want to know.

Will it help you make more money?

The short answer is YES.

That’s proven by their past performance. (You can read more about their performance here.)

Also, I have been paper trading all of their stock picks on my own to validate their claims. And I have seen similar results. Check out my article here.

Here are some additional insights

1- It is true that there are many free options to explore, but after testing a bunch of them (I paper traded multiple stock advising services), the Motley Fool provided the most optimal returns and the best bang for the buck.

2- The Stock Advisor is now cheaper than ever for only $19 a month or $99 for 1 year with a 30-day 100% membership refund period.

3- I do agree that this service should be considered as a cost in your portfolio’s return.

But what if you can recover that fee with better stock picks and higher returns?

In other words, you will have to consider this as one of your investment fees, but the stock picks will higher overall portfolio return versus a portfolio’s return without a paid subscription.

4- Like with any other investment advisory firm, it’s true that their investment strategies are not 100% guaranteed.

However, they do keep full transparency and will alert you when to close a position.

They also display their past closed positions and how much it has returned.

My recommendation would be to set stop-losses based on your risk aversion with trailing percentages and/or fixed prices.

5- After testing their advising service, I was amazed at how much money i made. I also feel that their service is very cheap compared to other alternatives. (Zack’s Investor service is 3x the price)

Does it cover Penny stocks?

No, the Motley Fool Stock Advisor (SA) focuses on blue chip stocks, which is large & well-established companies in their respective industry.

Penny stocks are stocks of small publicly traded company that are trading at very low prices per shares (5$ or less in general).

Such stocks are usually highly volatile.

For penny stocks, I would suggest looking into Timothy Sykes, a penny stock trader who made $1.65 million by day trading as a university student.

Tim is now a financial educator and activist, where he donated $1 million to build schools in countries such as Ghana, Indonesia, etc.

Tim has a couple of teaching segments that you might interest you:

Tim Skykes with car

What about Technical analysis?

Technical analysis involves analyzing and forecasting the direction of stock prices.

Technical Analysis focuses primarily on historical data such as stock prices and volume.

The Stock Advisor service is based on the fundamental analysis, which is the study of a company’s financial statements, their competitors, the overall health of the economy, etc.

When investing for the long-term, it is best to analyze a stock’s fundamental, which can define the strengths, weaknesses and overall value of a company.

With the Motley Fool’s stock advisor (SA), the fundamental examination has already been taken care of, where you can read the analysis in their stock reports.

However, if you are an enthusiast of Technical Analysis, you can always perform your due-diligence with the Fool’s recommendations.

Is it good for day traders?

Day Trading involves buying and selling stocks on the same day.

I personally believe it is hard to be successful as a day trader.

Think about it- You would have to put a heavy amount of cash on one single position and make round trip transactions on one day to be profitable.

As an individual investor, I wouldn’t be comfortable having a large position on one stock. The Motley Fool’s Stock Advisor (SA) is a service that is not suited for day trading.

It is more focused on buy & hold portfolios that is seeking capital growth. This involves a lot less stress and growth for the long-term.

Will it make me rich?

It depends – rich is relative. What is rich for you?

From a personal standpoint, I believe being rich is when you have more wealth than the previous time frame.

You are richer if you have a dollar more than yesterday.

So, will the Motley Fool Stock Advisor (SA) make you rich?

Most probably, but this is something subjective and contingent on what you believe is rich.

Then what is it good for?

I believe this is the easiest way to enter the world of investments and trading.

Being exposed to stock recommendations and what the Gardner brothers have discovered will help you pinpoint what is essential in managing a portfolio.

Whether it’s for general knowledge of the market or for using for investment purposes, I believe the Stock Advisor is a tool that you should have in your trading bookmarks.

You don’t need a fancy degree or a job at Goldman Sachs to make money in the stock market.

The Motley Fool has made it easy and affordable for the regular Joe/Jane to start investing and to start making real returns.

Motley Fool Review Conclusion…

So… is the motley fool worth it?

The short answer is YES.

If you skipped my entire article and came right down to the conclusion, (Good for you; I would probably do the same…) then the Stock Advisor Service is most definitely for you.

It’s saved me so much time and money over the years! I’ve been a customer for over 3 years and I can definitely say it’s been worth it.

p.s. If you use this link, you will get a 50% discount. (I don’t know how long it will last…) Click Here

If you did read my entire post and want the details to why I’m recommending it, let’s get started.

The Math doesn’t lie

The reason I think it’s worth the money is because it pays for ITSELF! That means it’s basically free. The math is very simple…

If you take advantage of this offer now, then the service will only cost $20/month.

That means that in order for it to pay for itself, it only has to produce 1 trade that makes at least $20.00.

Here’s an example: If I invest 10k in their recommended stock and that stock increases by only 0.5% (that’s peanuts…), then I would make $50 that month (10,000 x 0.5% = $50).

The math doesn’t lie.

Now, if I subtract the $20 i paid for the Fool subscription, I am still up $30.00/month. 

It becomes even MORE interesting when you look at the year. Especially since I don’t have time to invest every single month. So, I often skip some months but look at my overall performance for the year.

For example, if i paid $99/year for the subscription and invest 10k. Let’s say I only make a bismal 5%/year (Historically, stocks average return is at least 11.69%) then I would make $500 (10,000 x 5% = $500)

Now, if I subtract the $99 i paid for the Fool, I am still up $400.00/year! 

It’s a no-brainer when you take a closer look into the Math.

That was just a very basic example of a worst case scenario.

The reality is that because of the Fool’s service, i was able to invest in Amazon 3 years ago!

Back then, Amazon was trading at about $330.

Now, Amazon is trading at roughly $1800!

That’s a 445% gain in only 3 years!

Again, the Math doesn’t lie…

So, that’s why i felt i had to write this review.

Many people have when people asked me if I am pleased with the Motley Fool’s service.  My answer is always ABSOLUTELY.

That is, until the day that the math doesn’t work out…

I don’t have any emotional connection to the Fool’s Stock Advisor product. So, as long as I am making more money than it’s costing me, i will recommend it.

As soon as it’s stop working for me, I’ll be the first to tell you.

Let me know what you think in the comments.

If i missed anything or if you have any questions, i’ll be sure to reply.

p.p.s. Don’t forget, the Fool Service is on sale right now. Here is the link

 

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