Motley Fool Rule Breakers reviews are red-hot, and we wanted to see what all the fuss is about. Does the RR team deliver solid stock recommendations and market analysis? Get the full scoop with our Motley Fool Rule Breakers review.
What Is Motley Fool Rule Breakers?
Motley Fool Rule Breakers is an investment newsletter and research service packed with plenty of features, including stock recommendations, trade alerts, Starters Stocks, and trading education materials.
These are just some of the most notable investing resources you can look forward to as a Rule Breakers subscriber.
In terms of strategy, The RR team typically targets stocks with explosive growth potential. Their bread and butter is finding disruptive companies that could cause a shake-up in their respective industries.
The holding period for Rule Breakers stock picks is five or more years. This long-term investment horizon is one of our favorite features of this newsletter.
Stock picking services that chase short-term gains could help you score a quick buck, but it’s easy to miss the party if you don’t hop on board ASAP — that’s if the company takes off.
Rule Breakers, on the other hand, focus on companies they believe can compete in the long haul. This could provide a more comfortable window to invest because the horizon is so far out. Also, we appreciate that the picks focus on sustainability.
Anyone familiar with Motley Fool’s flagship service, Stock Advisor, is likely well aware of The Fool’s penchant for picking high-quality growth stocks.
Let’s take a brief look at the similarities and differences between these two stock-picking newsletters.
Motley Fool Rule Breakers vs Stock Advisor
Like Rule Breakers, Motley Fool’s Stock Advisor is a stock-picking service focused on holding shares for the long term. They leverage entirely different investment strategies, however.
Where Stock Advisor looks for stable companies that have the potential for steady growth, Rule Breakers sets its sights higher and looks to cash in on ones that could generate massive returns.
Rule Breakers’ approach carries greater inherent risks than Motley Fool’s Stock Advisor, but the immense growth potential could balance this out.
Many Motley Fool members seem to see these services as complementary and pair them together to play on each other’s strengths. This lets you get the best of both worlds.
We’re going to give a complete deep dive on the Rule Breakers service, but first… we’ll take a look at the publisher behind this highly acclaimed newsletter, The Motley Fool.
What Is the Motley Fool?
The Motley Fool is a great investment research publisher that is easily one of the top names in the industry. Many regard The Fool as the gold standard, including us. This publisher’s rep is well-earned, and the team’s stock research is exceptional.
Brothers Tom and David Gardner founded the Fool in the 90s. David even personally manages some of the Fool’s higher-end research products and portfolios to this day.
If you’ve spent a second on the web looking for investment newsletters, you’ve likely stumbled across some of The Fool’s services. In fact, we often see this publisher mentioned on top-ten lists for the best stock-picking services.
Some of Motley Fool’s most popular stock-picking services include:
- Stock Advisor
- Rule Breakers
- Epic Bundle
- Motley Fool Options
This publisher has been in the business for decades, so there are plenty of exceptional Motley Fool services to choose from.
Here’s a little background on Motley Fool’s co-founders and elite stock pickers:
- David Gardner – The elder brother, David, has a keen eye for growth, and he has predicted the rise of many of today’s top stocks over the past two decades. David specializes in emerging industries and higher-risk growth stocks. His investing style is closer to the Rule Breakers service.
- Tom Gardner – Tom is the younger sibling of the pair, and he has a more conservative style than his brother. His approach favors a long-term investment strategy, value stocks, and dividend stocks. His stock selection style most closely aligns with The Motley Fool Stock Advisor service.
Fool’s popularity skyrocketed over the last few decades because of its consistent ability to beat the market. In fact, many Motley Fool stock picks have beaten out the S&P 500 by a significant margin.
The Fool has earned a reputation as a reliable and highly trustworthy research firm over the years, and that’s a rare feat in a space saturated with get-rich-quick scams and shady operators.
How Does Rule Breakers Work?
Rule Breakers’ high-growth stock picks are delivered through its newsletter twice a month on the second and third Thursday.
Members also get immediate access to a bunch of additional features through the Rule Breakers Dashboard like Starter Stocks, Best Buys, and investment portfolios. So don’t worry if you sign up for a Rule Breakers membership on an off week because you’ll have your hands full with tons of extras, including bonus investing recommendations.
These resources are available through the login on the Motley Fool website, which acts as a portal to the newsletter’s features. There’s also a fantastic tool that lets you check on the performance of previous Rule Breakers picks.
We really like that The Fool is so transparent and immediately lets you check in on its historical performance.
Investment Strategy for Stock Picks
Motley Fool’s overall investment strategy follows a six-point plan that applies to almost all its services, including Rule Breakers. You are not required to follow these guidelines, but the team believes this could help maximize your returns with a Motley Fool premium subscription:
- Buy 25+ companies over time
- Hold stocks for 5+ years
- Add new savings regularly
- Hold through market volatility
- Let your winners run
- Target long-term returns
Not every stock pick is a winner, but Motley Fool stock picks tend to perform admirably on average. That’s why the team recommends owning 25+ companies as a hedge.
The RR team scours the stock market for companies that have the potential to disrupt their industries. But this is a small part of the story. There are other key factors that The Fool searches for:
- Innovation – Rule Breakers looks for companies who have a foothold in innovative or disruptive capabilities or technology. These companies don’t need to be the first, in their industry.
- Competitive Advantages – X factor(s) that position the company to dominate its market, IPs with potential, high-profile leadership, etc.
- Solid Management – Companies need to demonstrate that their management has a track record for succeeding in new markets. Rule Breakers also looks at the financial backers behind the company.
- Consumer Appeal – Companies must be positioned in a market that already shows strong consumer appeal, rather than creating solutions in hopes of inventing a new market.
- Sustainable Business Practices – Fool plays the long game, so its team focuses on companies that can sustain growth over an extended period of time.
Many Rule Breakers stock picks lean into tech, which makes sense, as this sector has produced some of the biggest winners over the last few decades. One of the best examples of a Rule Breakers’ pick is Tesla, which has proven itself time and time again on the stock market.
Also, you can see that Tesla checks all the boxes that we outlined above.
From the perspective of Rule Breakers, high-growth companies could be some of the best stocks to buy and hold, and they could make great additions to just about any portfolio.
It’s hard to argue with that, considering the performance of some of the team’s recommendations (more on that later).
What’s Included with a Rule Breakers Membership?
- Rule Breakers newsletter
- Rule Breakers portfolio
- Sell alerts
- Starter Stocks
- Best Buys Now
- Investing education
- Money-back guarantee
Rule Breakers Newsletter
Rule Breakers publishes two issues of its research newsletter every month. Each issue includes a new high-growth stock idea that has earned a Motley Fool buy rating.
The recommendation gives you the stock ticker, risk rating, stock price, projected return rate, and supporting research.
These stock reports are loaded with detailed analysis as well as background and news to support the recommendation. It provides a strong case for why the team picked the stock, and the research is a breeze to follow.
In fact, something we appreciate is how accessible the writing is. Sometimes investing newsletters are packed with finance and investing jargon that’s a slog to get through.
Fool just keeps it simple and tells you what you need to know in clear terms. This is why so many people recommend its market research for newbies.
You’ll know about the hottest up-and-coming stocks well before most of the retail market catches on.
Not every Rule Breakers’ pick will see sharp returns, but just one home-run stock can quickly turn your portfolio around.
Rule Breakers Portfolio
When you sign up for Motley Fool Rule Breakers, you get instant access to the Fool’s entire portfolio of stock recommendations, including some of the best growth stocks in The Motley Fool universe.
This service focuses on companies with excellent growth potential, so you’re going to find dozens of fantastic investment ideas here.
Some of these companies are obvious favorites, but you won’t hear the mainstream financial media discuss most of these stock picks because they’re so under-the-radar.
Whether you’re looking for a trading idea or a long-term investment, The Motley Fool Rule Breakers recommendations library has tons of stocks to help you get started.
Motley Fool issues sell alerts whenever the Rule Breakers team feels that holding a position is no longer ideal.
Sell alerts can happen, but they are not particularly common. The Rule Breakers team specifically picks stocks that they believe can weather volatility, so their default stance is holding until the market recovers.
This can be difficult for traders who aren’t accustomed to seeing their position through.
You can always begin by investing in some of the more time-tested picks from Starter Stocks before picking up shares from a fresh newsletter.
Building a fresh investment portfolio can be difficult to manage if you’re new to the world of investing. Fortunately, Fool’s Starter Stocks can make the process much simpler.
This collection of highly rated stocks makes an excellent foundation for any Rule-Breakers-based investment portfolio.
Whether you’re a beginner or veteran, you can get a lot out of this resource. Starter Stocks also serves as an exceptional model that you can use to learn a lot by seeing how the Motley Fool sets up a foundational portfolio.
Depending on your experience level, this could be one of the most valuable resources included with the Rule Breakers service.
It makes it easy for beginners to dive in and start investing right away.
Best Buys Now
The Rule Breakers team maintains a list of five Best Buy Now stock picks and updates it every month. Each of these stocks has strong support from the Rule Breakers team, and many wind up being some of the best recommendations in the Rule Breakers portfolio.
You can gain valuable insights by monitoring the Best Buys list and easily see which stock picks have the most long-term growth potential. Just one glance tells you the month’s top stocks, and this regularly updated list adds significant value to a Motley Fool Rule Breakers subscription.
We appreciate having an up-to-date listing of the best buy and hold stock picks for quick and easy reference.
Motley Fool Community
Subscribers also get access to one of the most vibrant investing support communities on the internet through Fool.com.
The investing community is a great place to vet your trading ideas to an audience that includes like-minded members of various skill levels.
You can also peruse the boards for trading ideas from other members, and you might even discover a quality stock pick or two among the lot.
Regularly participating in Fool’s online community can help you sharpen your trading skills and discover new stocks to trade.
The community is one of the Fool’s most underrated features. If you decide to sign up for Motley Fool Rule Breakers, make sure you take advantage of this highly knowledgeable network.
The Motley Fool built Rule Breakers for folks of all skill levels, so the service doesn’t end with stock picks.
Rule Breakers subscribers can also access the entire Motley Fool library of investing resources and trading tools, which has volumes of high-value education materials.
These materials cover a wide range of foundational investment topics, including company valuation guides, risk analysis, guides on how to pick stocks, and more. The library also has more advanced subjects geared towards experts, so there’s something for everybody.
If you put in the effort to study the Fool’s educational materials, you’ll pick up tons of investing tips that could help you improve your trading performance.
These lessons will last a lifetime, so the library’s long-term usefulness will outlive a Rule Breakers subscription by a wide margin.
Motley’s Money-Back Guarantee
Motley Fool’s Rule Breakers has a rock-solid 30-day money-back guarantee — not in-house credit. So if you try the service out and decide it’s not right for you within 30 days, you can get a full refund.
Rule Breakers stock picks are meant to be held for five-plus years, so this isn’t enough time to see a position through to its completion. However, it does give you more than enough time to check out the quality of the research you can expect.
You can also check on the historical performance of the service straight from the source, and see how the team’s high-growth stocks stack up.
With so much on offer right out the gate, Motley Fool’s Rule Breakers’ 30-day money-back guarantee is excellent.
Rule Breakers Track Record
Motley Fool’s Rule Breakers has earned a reputation for picking market-beating growth stocks, and the stock portfolio has produced big investment returns over the years.
In fact, since its 2004 launch, Motley Fool Rule Breakers‘ stock picks have seen an average return of 184% — almost 2X’ing the S&P 500’s ~95% average return.
Thanks to spectacular performances like this, Rule Breakers has emerged as a top-tier stock picking service.
In fact, Wall Street Survivor named Motley Fool Rule Breakers the “Top Investment Newsletter” for 2017, 2018, and 2019.
The Fool doesn’t need gimmicks or long-winded presentations to get its message across. Few investment research services can match the Rule Breakers‘ ability to beat the market consistently.
While Rule Breakers has had a history of producing stock picks with high returns, past performance does not promise future results.
Here are a few examples to illustrate Motley Fool Rule Breakers‘ performance.
If you follow the stock market, there’s a slim chance you haven’t heard of Tesla.
The Motley Fool made this stock pick towards the beginning of the year, way before the stock split, and the EV company is up 398% since The Fool made the call.
Intuitive Surgical (NASDAQ: ISRG)
Rule Breakers recommended this cutting-edge healthcare stock a few years ago, and share prices are 39 times higher than they were when the Fool first made the call.
This company has been red-hot since the lockdowns left much of the world streaming endless reruns.
However, Rule Breakers was well ahead of the curve when they suggested this stock pick. Anyone who got in when Fool made the call had the potential for a 68% return.
eCommerce stocks are a hot commodity since the pandemic drove much of daily life online.
Fool made this stock pick when it was at the bottom of its pandemic sell-off, and the stock price has rebounded 197% since then.
Another successful stock pick for Motley Fool.
These stocks posted some of the best returns in the market when they were picked, so you can see that Rule Breakers has an eye for quality. However, keep in mind that every pick has an associated risk.
There are no sure things when you invest in any company, but the Fool’s insights can help set you on the right path.
Pros and Cons of Motley Fool Rule Breakers
We found a lot to like during our Motley Fool Rule Breakers review, but there are some areas that the service could improve on.
Take a look at our pros and cons list to see what we found.
- Get extra stock picks with Best Buys Now and Starter Stock watch lists
- Rich investing community with strong support among members
- Independent investment research
- Supported by a top-tier investment team
- Iron-clad satisfaction guarantee protects you for 30 days
- Subscription provides access to the Rule Breakers library of picks, which includes dozens of high-quality stocks
- Two new growth stock ideas every month
- Excellent member services and support
- Affordably priced at $99 per year
- Subscription includes instant access to an extensive catalog of trading resources, education materials, and more
- Some stock picks may be too aggressive for someone looking for conservative investments
- No short or options strategies
Is Rule Breakers Right for Me?
Rule Breakers casts a wide net, so it has many general benefits that apply to most everyday folks.
However, some may like Rule Breakers stock picks more than others. If you fall into one of these categories, you could get a lot out of this service.
Growth Gang – The team has a magic eye for high-growth stocks, and you could discover the next generation of up-and-coming companies well before they hit the mainstream with a Rule Breakers subscription.
Beginners – Motley Fool frames its research in a straightforward way that many will find refreshingly easy to read and apply. You don’t need to be a stock market specialist to use this service. Plus, you can get access to the Fool’s trader education resources when you sign up.
Busy Bees – Some people know how to trade just fine, but they don’t have the time to scour the market to find under-the-radar high-growth stocks. Rule Breakers will keep you updated on the hottest stocks, so you can get the most out of the market without sacrificing endless hours of your time.
How Much Does Motley Fool Rule Breakers Cost?
A one-year subscription to Rule Breakers typically costs $299 per year, but Fool’s introductory deal brings the price down to $99.
At that rate, you get more than 66% off the full sticker price.
Plus, you still get access to every Rule Breakers stock pick, including historical stock picks, monthly stock picks, investing education resources, and much more.
Is Motley Fool Rule Breakers Worth It?
Motley Fool Rule Breakers is an exceptional newsletter that is well worth the price. Paying just $99 for the first year is a massive value, considering everything on offer. That’s 27 cents a day.
Whether it’s a crystal ball or old-fashioned intuition, Motley Fool picks stocks with astounding accuracy, and one well-placed investment can easily make back your subscription cost.
It’s no exaggeration to say investing in just one of Fool’s home-run stocks could change your life.
Imagine buying Intuitive Surgical and having the opportunity for 3,000%+ returns.
It’s risk-free for 30 days, so you can sign up now at a special reduced rate that gives you 66% off the sticker price.