Motley Fool Stock Advisor Review

Motley Fool's Stock Advisor service has boasted impressive historical returns. But are they legit? And are their stock picks worth the yearly fee?

	Stock Advisor - $99/year for New Members Join Now for $99
	Overall Score	4.3
	Price	4.0
	Ease of Use	4.5
	Performance	4.5
	Research	4.0

5-point scale (the higher, the better)

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Pros and Cons

• Strong historical returns
• Expansive research and educational tools
• Real-time alerts

• Premium services can be expensive

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Bottom Line

Stock advisor with strong track record for beating the market

Motley Fool's Stock Advisor claims they can beat the market. And it seems they have the numbers to back up this claim.

But is this service worth $199/year?

Find out with this review of Motley Fool's Stock Advisor, including how their recent stocks are faring. Plus, get a closer look at their crazy historical returns and what others are saying about it.

What is Motley Fool Stock Advisor?

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool (or simply "The Fool") is an online platform offering financial and investment recommendations.

Their website draws in amateur investors with lots of free, beginner-friendly educational content like "Investing 101," "Credit Cards 101," and "How Much Do I Need to Retire?"

Stock Advisor is Motley Fool's flagship stock-picking service.

For $199/year, Motley Fool will send you two of their best stock picks each month and 10 "timely new buys". You also get access to their premium investor education materials.

This service boasts an impressive 727% return from inception to July 22, 2024, compared to just 161% for the S&P 500 over the same period (more to come on this claim).

How Motley Fool Stock Advisor Works

Motley Fool's business model works like any other stock recommendation subscription. Once you sign up, you receive their two stock picks for that month, and for each month moving forward. You also get instant access to all of their previous recommendations as well.

Motley Fool recommends stocks that they believe have the potential for big growth. The Stock Advisor subscription mostly recommends large, established companies and blue-chip stocks.

There are some criteria for their picks:^[1]

1. The company must have a market capitalization exceeding $200 million
   
2. The company must demonstrate an average daily trading volume of at least $400,000

Their stock picks usually come from the technology, consumer, industrials, healthcare, communication services, and financial sectors.

Motley Fool Investing Philosophy

Motley Fool has 6 rules for investing. These rules are listed below:^[2]

1. Buy 25 or more companies recommended by The Motley Fool over time
   
2. Hold recommended stocks for 5+ years
   
3. Invest new money regularly
   
4. Hold through market volatility
   
5. Let your portfolio's winners keep winning
   
6. Target long-term returns

Motley Fool's investing philosophy is about long-term investing. The strategy is to consistently invest each month for at least five years. This is definitely not for traders or for those looking to make quick bucks.

Its investing philosophy is buy and hold. Buy over 25 companies in a span of over five years. All while adding to the investment regularly even amidst market volatility.

This investing philosophy is for the patient. This is for those who are willing to wait for winning stocks to run and produce long-term returns.

What You Get with Motley Fool Stock Advisor

With the Stock Advisor membership, you get:

• 2 new stock picks every month
  
• 10 timely buys chosen from over 300 stocks
  
• Starter Stocks recommendations to build your portfolio
  
• Dozens of stock reports written by experts
  
• Live streaming during market hours
  
• Full library of all their published content, including articles, videos, and eBooks
  
• Online community of investors to share and learn from

You get detailed reports outlining the investment thesis and why that stock is a top pick. This can help you decide if the stock fits in your portfolio.

Motley Fool also offers user-friendly stock screener. This allows you to enter a specific stock or sort stocks through various filters.

It also has live customer service in case you have any questions about your subscription. Aside from that, there's also a message board for Stock Advisor members.

How Much Does Stock Advisor Cost

Stock Advisor costs $199 per year.

CreditDonkey readers can get a discount for the first year. Check it out below.

If for whatever reason, you immediately regret signing up or feel like it's not worth it, Motley Fool offers a 30-day membership-fee back guarantee on select premium services.^[3] Just cancel within 30 days for a full membership fee refund.

Stock Advisor - $99/year for New Members

*$99 is an introductory price for new members only. 50% discount based on current list price of Stock Advisor of $199/year. Membership will renew annually at the then-current list price.

Click Here to Join Now for $99

Who Motley Fool Stock Advisor is Best For

The Stock Advisor service could be for:

• Long-term investors who plan to hold their stocks for at least 5 years
  
• DIY investors who manage their own portfolios
  
• New investors who are not sure what to invest in
  
• Busy investors who don't have time to do their own stock research

Motley Fool Stock Advisor is NOT for day traders. They use the buy-and-hold investing strategy. They pick stocks that they believe will perform well over the long term.

Who Should Skip Stock Advisor

Motley Fool Stock Advisor might not be for:

• Day traders looking to make a quick buck
  
• Investors not comfortable with risk and very volatile stocks
  
• Those nearing retirement and don't have years to hold
  
• Hands-off investors who prefer robo-advisors or index funds over managing individual stocks

Stock Advisor Pros and Cons

© CreditDonkey

Pros

• History of strong returns vs. the S&P
  
• Includes research and rationale for each stock pick
  
• Price is comparable to similar platforms, like Seeking Alpha
  
• Includes real-time buy/sell alerts as market conditions change
  
• Access to premium investor educational content and interviews

Cons

• Historical outperformance heavily relied upon a few stocks
  
• Some services are rather expensive
  
• Could be pricey for small investors

Now that you have an idea of the basics, let's dive into the Motley Fool review.

Are Motley Fool Stock Picks Good?

Since the service's inception in 2002, Motley Fool claims that an equal-weighted portfolio of its Stock Advisor picks returned a total of 727% vs. just 161% for the S&P 500 index. This is as of July 22, 2024.

Note that Motley Fool's performance significantly decreased along with the 2022 stock market decline. In 2021, their stock picks' average returns were as high as 551%.

They have picked some big winners. Here are some of Motley Fool's top picks and their returns since they first recommended it.

• Amazon (up 23,823%)
  
• Netflix (up 34,055%)
  
• Walt Disney (up 5,241%)
  
• Nvidia (up 72,163%)

These surely had a substantial impact on that 727% return. Without these outliers, the Motley Fool's track record wouldn't be as high. However, they have proven that most of their picks have had a positive return.

For example, Amazon's stock price when Motley Fool recommended it on September 6, 2004, was $0.76. By July 22, 2024, its price already reached $183.13.

They do occasionally recommend some duds. One example is Luckin Coffee, whose stock price plunged in 2020 after allegations of corporate fraud.

Zoom was also recommended by Motley Fool on April 16, 2020. Zoom's stock price at that time was $150.26. Since then, however, Zoom has experienced a continuous decline in value, reaching $58.87 by July 22, 2024.

Overall, their big winners have earned much more returns than the big losers have lost. But as always, remember that past results do not guarantee future performance.

Does Motley Fool Tell You When to Sell?

Yes, The Motley Fool will issue a sell recommendation when they believe that it's best to sell a previous stock pick.

It's normal for stocks to go up and down in value. So they won't recommend to sell just because the price drops. It only happens if the stock downturns significantly and they are no longer confident in its performance for the long term.

Of course, it's still up to your judgment if you would like to follow their recommendations.

When Does Motley Fool Release Stock Picks?

When you subscribe, you will receive two new stock picks each month straight to your inbox.

You will also gain access to 10 timely buys selected from over 300 stocks. Some of these will be previous stock picks. But these still give you more stock ideas if you wish to expand your portfolio.

How to Get the Most out of Stock Advisor

Here are some tips to use Stock Advisor wisely so you have the best chance of success.

Hold for at least 5 years
Motley Fool focuses on a long-term investment strategy. They pick stocks with high growth potential. So you might need to hold them for several years to let them reach their potential.

Consider investing an equal amount into each stock pick
This diversifies your portfolio. You don't know which stock recommendation will be a mega winner, so you might invest in each equally.

Be ready to buy recommended stocks
Stock prices can go up quickly in just a couple of days, or even hours. Have the cash ready in your brokerage account so you can make the purchase quickly.

Leave emotions out
It's normal for growth stocks to swing wildly in the short term. If you see a decline, don't panic and sell it right away, thinking it's a loser. Give it time to recover and grow.

Consider listening to their sell recommendations
Motley Fool doesn't advise to sell carelessly. So if they issue a sell recommendation, they really believe that the stock is a loser and your money is better off elsewhere.

Is Motley Fool Legit?

Yes, Motley Fool is a legit stock advisor service. The Stock Advisor service has been around since 2002. They've been completely transparent about the performance of their stock picks since the very beginning. You get detailed research so you can make the best decisions for yourself.

It's important to remember that Motley Fool simply provides monthly stock recommendations and their corresponding research. They are not financial advisors. So it is up to you to choose if and when to act on their recommendations.

Between the two monthly top picks and their 10 timely buys, they'll be recommending dozens of stocks each year. A lot of them will be winners but some will certainly be losers too.

Is Motley Fool Worth It?

For $199, The Motley Fool Stock Advisor subscription is certainly worth it if you want to save time and stress. There is a very high chance that you will earn more than $199 back in return. So yes, we think Stock Advisor is well worth the price.

If you're a new investor, you may feel totally lost on what to buy. It takes years of experience and research to get a feel for how to pick good stocks. With Motley Fool, you can just buy their picks until you have a diversified stock portfolio.

You could just get it for 1 year for a discounted price and end up with 24 stock recommendations for your portfolio. But even at $199/year afterward, it's worth it since their picks have the potential for high growth.

Motley Fool's stock recommendations have proven to beat average stock market returns. And for just $199 a year, it's much cheaper than getting a financial advisor.

Stock Advisor - $99/year for New Members

*$99 is an introductory price for new members only. 50% discount based on current list price of Stock Advisor of $199/year. Membership will renew annually at the then-current list price.

Click Here to Join Now for $99

Motley Fool Premium Services

Aside from Stock Advisor, Motley Fool also offers a membership that combines foundational stock-investing services. If you're seeking expert investment research, see if this subscription fits your financial goals.

Motley Fool's Epic annual subscription fee is $499 per year. It includes everything in Stock Advisor. In addition, each month, you'll receive 5+ new stock recommendations and top 10 rankings from Rule Breakers, Hidden Gems, and Dividend Investor, plus the latest buy and sell alerts for all active recommendations.

Here are the popular scorecards included in the Motley Fool Epic.

• Stock Advisor: This service provides 2 new stock picks every month, a selection of the top 10 stocks to buy now, and starter stock recommendations.

• Rule Breakers: It focuses on high-growth companies and is more volatile, making it ideal for investors willing to take risks.

• Hidden Gems: This scorecard recommends 2 stocks per month that you can hold for at least 5 years, making it perfect for long-term investors.

• Dividend Investor: The main goal of this scorecard is to build a portfolio of dividend-paying companies that provide high returns and a steady, significant income for life.

Motley Fool Overview of All Services

Customer Service

Motley Fool is generally easy to reach and tries to do right by their customers, as evidenced by their 30-day membership-fee back guarantee for those not happy with certain subscription services.

For any questions you don't see on the FAQ section of their website, you can contact them in the following ways:

• Phone support: Call (888) 665-3665 during normal business hours (9:00 a.m. - 5:00 p.m. EST, Mon-Fri)

• Email support: Send an email anytime to help@fool.com

• Online support: Submit a ticket via this online form

Customer Complaints
The biggest complaint we've seen in reviews is that Motley Fool is always trying to upsell their customers on newer, more expensive subscription packages.

Motley Fool Stock Advisor vs. Morningstar

It's always important to compare a service to its competitors. One popular service competing with Motley Fool is Morningstar Investor.

Morningstar is probably best known for its 5-star rating system for mutual funds and ETFs, but it has recently expanded this to individual stocks as well.

For an annual subscription of $249, you can get Morningstar Investor, giving you access to their vast library of research on mutual funds, ETFs, and stocks prepared by more than 150 of their professional research analysts.

Start 7-Day Free Trial of Morningstar Investor

Click Here to Start Free Trial

You also get access to Morningstar's portfolio research tools, such as their stock, ETF, and mutual fund screener to filter investments based on dozens of helpful criteria.

Motley Fool's Stock Advisor is for those who want specific stock recommendations for their portfolio.

Morningstar Investor is better suited for the well-rounded investor who is looking for the tools to build a diversified portfolio of not only great stocks but also great mutual funds and top ETFs.

Bottom Line

Motley Fool is one of the best value stock picking services with strong past performance. The Motley Fool stock picks in aggregate have beaten the overall stock market since their service began in 2002 and the past five years.

This doesn't guarantee that they will continue to generate strong returns, but it does suggest that they at least have some skill in identifying winners. Their library of educational content and real-time stock alerts can also provide you with some guidance as you take advantage of their recommendations.

The Motley Fool service is good for both new and experienced investors looking for new companies to add to their portfolio. Just remember that you should consider holding them for at least 5 years to get the most out of it.

Disclaimer: Pricing, fees, and performance information are as of July 22, 2024.

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