Are you looking for a Motley Fool Stock Advisor review? But you may wonder if it is a scam.
Stock analysis is a time-consuming process. There’s no guarantee that your analysis will be as thorough as that of experienced traders, even if you think you’ve spotted a winner.
Why not let a professional (or two) do the work for you and explain why they pick certain stocks?
It probably doesn’t sound cheap to you. After all, it usually is. However, at The Motley Fool, you won’t find that. For the first year, new members can get The Motley Fool’s stock
recommendations for just $89. After so many years in business, The Motley Fool has earned a stellar reputation among investors. In this review, we’ll examine the flagship investment newsletter to see if it’s worth it.
As a disclaimer, I’m not affiliated with Motley Fool Stock Advisor. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.
At the end of this review, I’ll also tell you the best alternative to Motley Fool Stock Advisor that has enabled me to make a full-time passive income online.
What is the Motley Fool?
The Motley Fool is an independent investment and financial advisory firm, in case you didn’t know. Personal, in-depth financial advice isn’t provided by a broker or financial advisor.
The Motley Fool was founded in 1993 by David and Tom Gardner, who wanted to make the world “smarter, happier and richer” by providing superior economic analysis and financial advice.
They wanted to tell the truth and never hesitated to challenge conventional thinking, much like the court jester in Shakespeare (who could tell the king and queen the truth without getting his head cut off).
Stock Advisor from The Motley Fool is a new online subscription platform that provides investment recommendations, stock research and analysis to investors of all experience levels.
It’s ideal for people like me who don’t have time to analyze companies on a daily basis and don’t want to pay a broker to do it.
What Do Motley Fool Offer?
Probably the most notable service is Stock Advisor.
If you’re looking for The Motley Fool’s best stock recommendations, you’ll find them in The Stock Advisor. You’ll also get the following:
- Two new stock recommendations every month – monthly delivery of the latest stock recommendations
- Best Buys Now – Ten bargain buys selected from over 300 stocks.
- Starter Stocks – stock recommendations for new and experienced investors
- Community and Investment Resources – access to educational materials and a strong investor community to help you grow
The services offered by Stock Advisor are comprehensive. Each month you’ll receive two selections and a detailed report on those selections. Reading the analysis that accompanies each recommendation is a fantastic way to expand your investment knowledge.
You’ll learn the dirty details of how and why those selections were made. And you can do the same thinking about stocks that aren’t listed in the newsletter. There’s no need to speculate about the selections. Use what you’ve learned from Stock Advisor’s research to inform your decisions when investing in stocks not included in the newsletter.
That they can prove their performance over time is remarkable.
And once they decide it is time to sell a stock, you will be informed.
The experts advise buying at least 25 different stocks and holding them for at least 5 years. It is not a day trade. By January 2022, the total return of all their recommendations was 479.3 percent, while the return of the S&P 500 was 134.3 percent. That means the market can go up four times.
Access To Previous Picks
You will also have access to the previous selections. The Motley Fool is committed to disclosing its results and shows its track record in stock recommendations. Looking at the past is a great way to gain insight into your own success or failure.
Plus, you do not have to wait for the next recommendations to be published after you sign up. You can get the latest recommendations right away.
Long-Term Investment Horizon
Day trading is not recommended when using the Stock Advisor. These stock recommendations are best for those who can take at least a couple of years to build an investment horizon. Familiarise yourself with the dangers of day trading.
The stocks recommended by The Motley Fool are suitable for any investment portfolio, not just retirement plans. That includes taxable investment accounts.
The Motley Fool’s investment community is also available to you. There are a lot of people in the community who share your interest in investing, including both beginners and seasoned professionals.
People who do not feel comfortable investing on their own, who need input on their stock ideas, or who have questions about stocks can benefit greatly.
Bonus data or features are a perk of the Stock Advisor service that occasionally appear beyond the scope of the subscription.
At the time of this article’s publication, the current bonus includes more than nine reports. This requires a lot of additional research and guidance.
Motley Fool offers Real Estate Winners by Millionacres for anyone interested in the real estate market. The target audience for this section is real estate enthusiasts, not those looking for investment recommendations.
Ways to Use Motley Fool Stock Advisor
Since its inception, Motley Fool has provided a wealth of information on personal finance and investing. Stock Advisor, the stock selection and research software, goes above and beyond the competition.
While you can not invest money in the market through the site itself, you can get the information you need to make informed trades through your own brokerage accounts.
The platform can be ideal for you if you are a self-directed investor seeking advice from industry experts. Benefits include those listed below.
- Recommendations: This is one of Stock Advisor’s strongest selling points. Every month, users are provided with two stock recommendations from the service.
- Best Buys Now: With this feature, Stock Advisor provides its best stock recommendations so that subscribers can choose the stocks that best fit their portfolio.
- Stock reports: stock analysis may be of interest to those who have a strong inclination to study. Investors who do not want to subscribe can still get a report on a single stock for $100.
- Investment articles and community resources: self-directed investors just starting out may find the platform’s many resources useful. In addition, there are investment-related eBooks and videos.
Stock Advisor is great for patient investors who don’t mind letting their money sit for a while, because Motley Fool’s investment strategy is based on the idea that members should buy at least 25 good stocks and hold them for five years.
The prices are reasonable, too. New members can sign up for an annual subscription at a discounted price of $99** (the regular price is $199), paying just over $7 per month (or about $1.90 per week). A one-month trial subscription costs $39, and there’s no money-back guarantee if you change your mind.
To sign up, simply fill out a short form on the website. A credit card is required to pay for the subscription.
The past success of Stock Advisor’s predictions is something Motley Fool is very pleased with.
The site boasts a return three times that of the S&P 500, and compared to the S&P 500, which returned 122% on August 9, 2022, Stock Advisor’s average return is 373%.
Motley Fool Stock Advisor Pricing
The first year of the Stock Advisor service will cost you $89. However, the cost of membership is refundable within the first 30 days.
The cost of the newsletter membership is fully refundable within the first 30 days if you don’t like the service.
Pricing for the three additional Motley Fool newsletters available to subscribers is listed below.
- Rule Your Retirement: $149/yr
- Rule Breakers: $299/yr
- Discovery: Cloud Disruptors: $1,999/yr
How Do I Open An Account?
Anyone interested in getting started can do so on the Motley Fool website. When you sign up, you’ll be asked for your credit card information.
What Do You Get With a Motley Fool Stock Advisor Membership?
Stock Advisor subscription gives you access to all these tools and more.
Best Buys Now
In addition to the two stock recommendations The Motley Fool makes each month, subscribers also get access to ten of the company’s best stocks.
Recently, the following stocks were highlighted as “Best Buys,” meaning investors should consider buying them.
The Motley Fool’s Starter Stock Guide is a great resource for new investors who are just getting their feet wet in the market. Stock Advisor subscribers have first access to this guide, which is updated once a year.
Historical Stock Advisor Picks
Stock Advisor also shows all past recommendations to back up their claims. Motley Fool’s track record of stock recommendations is available to subscribers.
After subscribing, you can view the results of all past Stock Advisor recommendations made by the Gardner brothers by clicking on the page labeled “Performance”
Live Video Discussions
Tom and David Gardner, the founders of Motley Fool, often update their subscribers in live video chats about stock prices and the research that went into each recommendation. They help each other with their homework and research.
In addition, subscribers can use Motley Fool Live to hear market updates, hear from special guests, and more.
Financial data, charts, headlines, CAPS valuations and more are available to Stock Advisor subscribers in the Stock Profiles section.
Stock Advisor subscribers can add recommended stocks to their favorites list if they already own shares in these companies or simply want to keep an eye on them. This feature allows you to view your stocks in one central location away from your brokerage account.
Investors can use simulator software to mimic various investment strategies. The tool’s probability of positive returns is just one example.
The simulator calculates the probability of a positive return based on the historical performance of the stock advisor based on the data you enter.
Portfolios can benefit from allocation software. The allocation tool provides a sample allocation to various asset classes such as bonds, cash, stocks, ETFs and mutual funds based on the risk profile you enter.
Special Reports Library
The Motley Fool studies market patterns to identify profitable stock investments. Stock Advisor subscribers have unlimited access to all of these reports.
Motley Fool Community
Finally, you have access to a vibrant online investment community where you can get tips on how to make money in the stock market, where to find reliable resources, and what stocks the pros are recommending this month.
The Motley Fool’s Track Record
In general, The Motley Fool’s stock recommendations are profitable. It is expected that 80-90% of the stocks they recommend will do well. There is only a small majority of their stock recommendations that outperform the S&P 500.
The Motley Fool recommends several large and mid-cap stocks, but not many small-cap stocks. They recommend members invest all of their money in high-quality stocks for the long term.
Is Motley Fool Worth It?
If you want to receive carefully selected stock recommendations by email every month and have access to a wealth of top-notch analysis, The Motley Fool is worth it. It’s a fantastic tool for amateur investors and beginners looking for guidance on their stock analysis.
We hope our review makes it clear that we have a positive impression of The Motley Fool. I have subscribed to other publications and used competing services that cost twice as much. The Motley Fool is a great bargain for investors of all experience levels because it balances innovative investment ideas with a fair price.
Reading the reasons behind each stock decision is a great learning experience for novice and advanced investors. These details can be used by experienced investors to make their own investment choices.
Investing in index funds and exchange-traded funds (ETFs) using dollar cost averaging may not warrant a subscription to the Motley Fool. But again, the quality of the top-notch research is high.
I’ve managed seven-figure portfolios and part of a university’s endowment, and I even own a few stocks recommended by The Motley Fool. Some people are doing really well. A few are just surviving. But by and large, they’ve been profitable enough to cover my subscription fees and still give me a little extra money.
Who Should Subscribe to The Motley Fool Stock Advisor?
If you are interested in a more passive approach to trading, The Motley Fool is the place for you. This is a great service if you are just getting started in the world of investing, or if you want to learn more about picking individual stocks instead of ETFs or mutual funds.
When I first stopped by, there were stocks I already knew about as well as some new ones. But as a financial journalist, I definitely know more about companies than a normal person. Only two of the eleven stocks featured were ones I had not thought of before.
This service is not for active traders who like to do their own research, or for passive investors who prefer to buy and hold a variety of funds.
Besides, The Motley Fool offers other services that may be more appropriate, such as those that focus on real estate investing or retirement income.
Is Motley Fool a Scam or Legit?
Motley Fool Stock Advisor is not a scam. To put it simply, Motley Fool Stock Advisor’s more than 700,000 subscribers know the secret: its stock suggestions are not only reliable, but have consistently outperformed the S&P 500 by double- and even triple-digit percentages.
Since its inception in 2002, Stock Advisor has returned about 350%, which speaks volumes about the quality of its services.
Do you expect Stock Advisor to make you rich? Not necessarily, but it should help investors who want to build their wealth by increasing it continuously.
You can try Stock Advisor from Motley Fool risk-free for 30 days and save more than $100 on an annual membership.
The Motley Fool Customer Service
You can reach The Motley Fool’s customer service department Monday through Friday between 9 a.m. and 5 p.m. at EST by dialing 877-629-2589. The service also offers subscribers the opportunity to receive stock updates via text message.
On the company’s website, you can also find a contact form to send an email to the customer service department.
The Motley Fool Stock Advisor Pros & Cons
- Weekly stock recommendations accompanied by professional analysis. Get weekly stock picks from a market expert with a track record of success.
- Compared to other financial newsletters, the annual cost is quite low. The service costs $99 the first year and $199 in subsequent years for new members. That’s $8.25 per month the first year and $16.58 per month in subsequent years.
- Text and email alerts provide you with timely information. To never miss an announcement, sign up for email and text alerts.
- A vibrant community. The Motley Fool forums are bustling, and it’s an overall pleasant, welcoming community of like-minded investors where you can quickly start a conversation about various stocks or investment ideas.
- Upselling. The site is heavily sales oriented and uses aggressive marketing language to try to sell you more subscriptions.
- There is no guarantee that a stock recommendation will be made. While The Motley Fool has outperformed the market as a whole, not every company recommended is a winner.
- Recommendations have the power to influence the market. Stock prices may temporarily rise after the newsletter is published, which may cause you to buy at a higher price if you are not careful.
Motley Fool Stock Advisor Alternatives
Motley Fool Stock Advisor vs. Stock Rover
When looking for a tool to research and analyse stocks, investors have two excellent options: Stock Advisor and Stock Rover.
However, Stock Advisor is still the best tool for beginners, advanced users and experts looking for stock recommendations and analysis.
Stock Rover is better because it allows you to perform portfolio analysis by linking your brokerage account to the app.
It also offers a variety of other investment resources, such as stock and ETF screeners, research reports, and technical analysis charts.
Motley Fool Stock Advisor vs Morningstar
The investment community often refers to Morningstar’s analyst ratings, making it one of the most popular competitors.
Although Morningstar Premium provides excellent research, we still recommend The Motley Fool for independent stock picks.
Motley Fool Stock Advisor vs Seeking Alpha
Seeking Alpha is another popular option, but it takes a more collaborative approach to research and content, which makes it unique. It is a reliable place to look for various stock recommendations and suggestions.
While both sites offer stock recommendations, The Motley Fool’s approach is better organized and not as cluttered.
Motley Fool Stock Advisor FAQs
Am I guaranteed to make money?
No. There is always a chance that one of the stock picks in the Motley Fool Stock Advisor program will not pan out, despite the program’s long track record.
Although negative returns are less common, Stock Advisor has some stocks that fall as much as 30% over the course of the year. Some may recover, but not all.
On the other hand, The Motley Fool is confident that our rigorous long-term investment approach can help investors grow their wealth substantially over time.
Are the recommended stocks cheap?
Even when stocks are relatively expensive, the Motley Fool often finds them just before they take off. They do not suggest risky small-cap stocks and instead recommend stable blue-chip companies. The focus is not on short-term gains, but on stocks with a bright future.
Because of the “Fool Effect,” you need to act immediately when the recommendations are released at noon on Thursdays.
As soon as the recommendations are published, the stock prices increase by about 2 to 3 dollars.
Who is the target audience for the Motley Fool?
Investors of all experience levels can find useful information and insights at The Motley Fool. The site was started in 1993 by brothers David and Tom Gardner and has since become one of the most visited investment sites on the Internet.
The target audience of The Motley Fool is retail investors looking for stock recommendations and investment advice. The site’s content is highly educational and is designed to help visitors better understand the stock market and increase their chances of financial success.
What is the Motley Fool’s opinion of mutual funds?
According to Motley Fool, mutual funds are a good way to put money aside for the future. Analysis shows that diversification and expert management of mutual funds can reduce losses and increase gains. If you don’t feel confident choosing stocks, the report recommends mutual funds as an alternative.
What is their investment philosophy?
Since each investor has his or her own personal investment philosophy, there is no universal solution to this problem.
The Motley Fool, on the other hand, recommends investors focus on buying and holding high-quality stocks for at least five years. Instead of worrying about the short-term price fluctuations of his stocks, he pays attention to the underlying business fundamentals of the companies he recommends and invests in.
Their own philosophies might be different. The investor’s risk tolerance, time horizon and desired return are four important factors that can factor into the investor’s overall investment philosophy.
In addition, an investor’s investment philosophy should be developed specifically for the investor and evaluated and revised as needed.
Motley Fool Stock Advisor Review: Final Verdict
Most of an investor’s capital should not be bet on the recommendations of a single stock-picking service (instead, it is better to learn how to invest in stocks). On the other hand, this service has a solid reputation and track record among stock subscriptions.
At the time of writing, I consider the stocks in the portfolio to be reasonable and safe. Of course, past performance is no indication of future results, but the advisor has had success in the past.
The annual subscription costs $199, so the trial period is a good opportunity to see if the service is worthwhile.
Take advantage of the 30-day money-back guarantee and the discounted annual fee of $99 (for new subscribers) to find out if the service is right for you.
Best Alternative of Motley Fool Stock Advisor to Make Passive Income
If you want to make a stable and secure stream of passive income, I would suggest you start an affiliate marketing business online.
Affiliate Marketing is perfect for anyone who is new to online business.
In fact, of all the online business models I’ve tried, affiliate marketing is the easiest and most rewarding so far.
In affiliate marketing, you can actually run your business almost with zero cost and achieve a steady and sustainable passive income to pay for your bills. You don’t need any initial capital and can even do it as a side hustle.
And if you really want to learn affiliate marketing and build a business from scratch, I’d recommend you to get started with the most reputable platform for affiliate marketing: Wealthy Affiliate.
Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch. It offers you a free account (including a free website) with comprehensive training on SEO (free traffic methods), which enables you to get started with affiliate marketing right away without paying a penny.
But How Much Can You Earn with Wealthy Affiliate?
A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while using free traffic methods.
Wealthy Affiliate has existed for 15 years and there are many success stories in the past decade.
To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.
Where to Join Wealthy Affiliate?
Wealthy Affiliate has a very simple pricing scheme. It has free and premium membership.
If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.
And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.
You can enjoy all these values without paying a penny.
So I strongly recommend you to register a free account and see it yourself.