Given the success of Stock Advisor, many want to know if its sister service packs the same punch and hard-hitting market analysis. Check out my Motley Fool Rule Breakers review to find out.
Motley Fool Rule Breakers: Overview
Motley Fool Rule Breakers is an investment newsletter and research service loaded with stock recommendations, educational resources, and trade alerts. Motley Fool Rule Breaker is a monthly subscription that helps investors know what stocks to pick.
These are just some of the most notable resources you can look forward to as a Motley subscriber. There are many more services and resources offered as part of your monthly stock subscription.
Regarding strategy, the 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. Motley Fool’s portfolio stock recommendations focus on these companies with potentially high returns.
The holding period for stock picks is five or more years. This long-term investment horizon is one of our favorite features of this newsletter.
Anyone familiar with Motley Fool’s flagship service, Stock Advisor, is likely well aware of their 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 and stock recommendations, however.
Where Stock Advisor looks for stable companies that have the potential for steady growth, Rule Breakers sets its sights higher and looks toward companies with higher growth potential.
This approach carries greater risks than the Stock Advisor service, but the immense growth potential could balance it out and lead to great returns.
Many members seem to see these services as complementary and pair them together to play on each other’s strengths to create a balanced stock portfolio.
This lets you get the best of both worlds when investing.
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 of the monthly subscription also get immediate access to a bunch of additional features through the dashboard like Starter Stocks, Best Buys, and portfolio.
So don’t worry if you sign up for a membership on an off week because you’ll have your hands full with tons of extras that you can use to guide your investing strategy.
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 picks.
I really like that Motley Fool Rule Breakers is so transparent and immediately lets you check in on its historical performance.
Rule Breakers Investment Strategy
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 investing guidelines, but Motley Fool’s team believes this could help maximize stock returns:
- 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 in your portfolio as a hedge.
As mentioned, Motley Fool’s team scours the stock market for companies that have the potential to disrupt their industries. But this is a small part of the story.
Here are some of the key characteristics of Rule Breakers’ picks.
- Innovation – The team looks for companies that have a foothold in innovative or disruptive capabilities or technology. They don’t need to be the first, in their industry. The stock just needs to have high potential for returns.
- 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. The team also looks at the financial backers behind the company to ensure that they are growth stocks.
- 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. These stocks aren’t going to yield quick returns.
Many stock picks lean into tech, which makes sense, as this sector of the market has produced some of the biggest winners over the last few decades
One of the best examples of Motley Fool Rule Breakers’ strategy in action is Tesla. This company has proven itself time and time again on the stock market.
Also, you can see that Tesla checks all the boxes outlined above.
From the team’s perspective, high-growth companies could be some of the best stocks to buy and hold, and they could make great additions to just about any stock portfolio.
It’s hard to argue with this, considering the performance of some of the team’s recommendations (more on that later).
What Is The Motley Fool?
The Motley Fool is a great investment research publisher that is easily one of the top names in the investing industry. Many regard this company as the gold standard, including us.
Motley Fool Rule Breakers rep is well-earned, and the team’s stock research is exceptional.
Brothers Tom and David Gardner founded the company in the 90s.
David even personally manages some of the higher-end research products and stock portfolios to this day.
If you’ve spent a second on the web looking for investment newsletters, you’ve likely stumbled across some of its services. In fact, I often see this publisher mentioned on top-ten lists for the best stock-picking services.
Some Motley Fool premium subscriptions include:
- Stock Advisor
- Rule Breakers
- Epic Bundle
- Motley Fool Options
This company has been in the investing business for decades, so there are plenty of exceptional stock services to choose from.
It’s important to note that Fool does not provide investment advisory services. Instead, it offers research on companies the team believes have potential as growth stocks.
Ultimately, what you do with this information is up to you.
Who Are the Gardner Brothers?
David and Tom Gardner are firm believers in transparency and thinking outside the box. They even named the company in homage to a court jester telling brutal truths.
According to the Motley Fool site:
“Our name is in homage to the one character in Shakespearean literature — the court jester — who could speak the truth to the king and queen without having his or her head lopped off. The Fools of yore entertained the court with humor that instructed as it amused. More importantly, the Fool was never afraid to question conventional wisdom.”
Tom Gardner is the younger sibling of the pair, and he has a more conservative investing style than his brother.
Tom’s approach favors a long-term investment strategy, value stocks, and dividend stocks. His stock selection style most closely aligns with Motley Fool Stock Advisor.
The elder brother, David Gardner, 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 team likes to invest in innovative leadership and stocks with a track record of past price appreciation.
Motley Fool Rule Breakers Review: What Comes with a Membership
Rule Breakers is more than just a stock-picking service. It’s jam-packed with a ton of other investing resources.
Let’s take a look at the main investing features first.
Rule Breakers Newsletter (Monthly Stock Picks)
The investors team 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.
Recommendations provide the stock ticker, risk rating, stock price, and supporting research for the picks.
These stock reports are loaded with detailed analysis as well as background and news to support the recommendations.
They offer a strong case for why the investors team picked the stock, and the research is a breeze to follow.
In fact, something I appreciate is how accessible the writing is in Rule Breaker. Sometimes investing newsletters are loaded with finance jargon that’s a slog to get through. But the Motley Fool Rule Breakers is easy to follow and the stock recommendations are clear.
The newsletter 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 fresh faces on the stock market.
Not every Rule Breakers’ pick will see sharp returns, but just one home-run stock can quickly turn a stock portfolio around.
Rule Breakers Portfolio
When you sign up for Rule Breakers, you get instant access to its entire portfolio of stock recommendations. This includes some of the best growth stocks in The Motley Fool universe.
The investing service focuses on companies with excellent growth potential, so you’re going to find dozens of fantastic trade ideas here.
Some of these companies are obvious favorites in the market, 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 stock portfolio has tons of stocks to help you get started with your investing strategy.
Motley Fool issues sell alerts whenever the investors team feels that holding a position is no longer ideal.
Sell alerts can happen. But they are not particularly common with Fool stocks.
The investors 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 stock position through.
You can always begin by investing in some of the more time-tested picks from Starter Stocks before grabbing shares from a fresh newsletter.
Building a fresh stock portfolio can be difficult to manage if you’re new to the world of investing. Fortunately, Starter Stocks can make the process much simpler.
This collection of highly rated stocks makes an excellent foundation for any Rule-Breakers-based portfolio.
Whether you’re a beginner or veteran, you can get a lot out of this resource and recommendations service.
Starter Stocks also serves as an exceptional model that could teach you how experts set up a foundational stock 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 in stocks right away.
Best Buys Now
The Motley Fool 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 investors team, and many wind up being some of the best recommendations in the stock portfolio.
You can gain valuable insights by monitoring the Best Buys recommendations list and easily see which stock picks could 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 your monthly subscription.
I appreciate having an up-to-date listing of the best buy-and-hold stock picks for quick and easy reference.
If you’re testing out the service, I recommend giving these stocks a close look first. It gives a pretty good example of how Motley Fool picks its home runs.
Premium Live Content
Joining Motley Fool Rule Breakers gives you access to weekday live streams featuring their expert analysts. These hour-long sessions, available during trading hours, cover a wide range of investment topics, from cryptocurrencies to semiconductor stocks.
Plus, you can revisit past shows anytime. This premium live content keeps you abreast of market trends, enhancing your investment strategy.
Motley Fool Rule Breakers: Additional Features
A Rule Breakers monthly subscription offers much more than growth stock ideas.
Read on to discover other added bonuses of your Motley Fool Rule Breakers subscription.
Motley Fool Community
Subscribers also get access to one of the most vibrant communities.
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 the online community can help you sharpen your investing skills and discover new stocks to trade.
It’s one of the most underrated features.
If you decide to sign up for Rule Breakers, make sure you take advantage of this highly knowledgeable network.
The Motley Fool built this service for folks of all skill investing levels, so the service doesn’t end with stock picks.
Rule Breakers subscribers can also access the entire library of resources and trading tools, which has volumes of high-value education resources on stocks and investing.
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 expert investors, so there’s something for everybody.
If you put in the effort to study these 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 monthly subscription by a wide margin.
The Motley Fool Rule Breakers service goes beyond mere stock recommendations. Subscribers also get access to exclusive reports that explore specific sectors, emerging trends, and individual companies.
This comprehensive toolkit, while not without risks, can significantly enhance your investment strategy with its wealth of insights and resources.
If you run into any problems with your membership, Rule Breakers has a dedicated customer support team ready to help.
It’s reassuring to know that there’s someone standing by to assist you if you need it. Motley Fool definitely gets extra points for its commitment to good customer service.
Motley’s Membership Fee-Back Guarantee
Motley Fool’s Rule Breakers has a rock-solid 30-day membership-fee 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 on the cost of the subscription.
Stock picks are meant to be held for five-plus years, so this window isn’t long enough to see a position to its completion.
However, it provides more than enough time to check out the quality of the research you can expect from Motley Fool Rule Breakers.
You can also check on the historical performance of the service straight from the source, and see how the investors team’s high-growth stocks stack up.
With so much on offer right out the gate, the 30-day money-back guarantee is excellent.
Motley Fool Rule Breakers Review: 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, its stock picks have seen an average return of 185% — almost 2X’ing the S&P 500’s ~95% average return.
Thanks to spectacular performances like this, the service has emerged as a top-tier stock-picking service.
Rule Breaker stock recommendations have a long track record of success, but what do some of its biggest returns look like?
Here are a few examples to illustrate its 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 way before the stock split, and the EV company increased 398%.
Intuitive Surgical (ISRG)
The investors team recommended this cutting-edge healthcare stock a few years ago, and share prices increased by 39 times after 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 on the stock.
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 rebounded 197%.
Another successful stock pick.
These stocks posted some of the best returns in the portfolio, so you can see that Rule Breakers has an eye for quality stocks.
However, keep in mind that every pick has an associated risk. Also, past performance does not indicate future results.
Motley Fool Rule Breakers Review: Is It Legit?
Motley Fool Rule Breakers is legit.
The company has been an industry leader for over two decades, and it doesn’t look like this will be changing anytime soon.
While the stock picks already provide tons of value, you also get access to a suite of bonus resources, such as Starter Stocks, Best Buys, community forums, and much more.
This is the whole package of investing services, and you’ll be hard-pressed to find a stock research service that provides the same upfront value.
Motley Fool Rule Breakers Vs S&P 500
The Motley Fool Rule Breakers service has a track record of providing investment recommendations that have significantly outperformed the S&P 500. If you had followed their advice from 2016 to 2021, you could’ve had a chance at an average return of 150%, compared to the S&P 500’s 67%.
This impressive performance is not without its risks, as the worst-performing pick during this period fell by 92%. However, the potential for high returns, such as their best-performing pick which soared by 3611%, is a testament to the potential of their high-growth stock investing strategy.
The Rule Breakers team employs a unique risk assessment method known as the “Crushability” test. This test assigns points based on the answers to a series of risk questions, with fewer points indicating a stock that is less likely to be crushed under the pressures of doing business in an unpredictable world.
This system provides an easy-to-use reference point that makes it easier for subscribers to identify stocks that align with their risk tolerance, providing a tailored investment experience.
The Rule Breakers service also emphasizes diversification as a risk management strategy. By spreading investments across a variety of stocks, investors can mitigate the potential losses from any single underperforming pick.
This approach, combined with their unique risk assessment and a track record of outperforming the market, makes the Motley Fool Rule Breakers an attractive option for those seeking high-growth investment opportunities.
However, it’s important to remember that past performance is not a guarantee of future results, and all investing involves risk. As such, the Rule Breakers service is best suited for those who are comfortable with the volatility associated with high-growth stock investing.
Motley Fool Rule Breakers Review: Pros and Cons
We found a lot to like during our Motley Fool Rule Breakers review, but there are some areas that the service could improve on.
Pros of Motley Fool Rule Breakers
- Motley Fool is legit
- Great price with 66% discounted subscription
- New high-growth stock picks every month
- Extra educational features
Cons of Motley Fool Rule Breakers
- Riskier investment profile than Stock Advisor
- Focuses on long-term plays only
Is Rule Breaker Service Right for Me?
Rule Breakers casts a wide net with their stocks, so it has many general benefits that apply to most everyday folks.
However, some may like its stock picks more than others. If you fall into one of these categories, you could get a lot out of this investing service and their recommendations.
The investors 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 subscription.
The stock research is refreshingly easy to read and apply.
You don’t need to be a stock market specialist to use this investing service. Plus, you can get access to trading education resources on sign up.
Some people know how to trade stocks just fine, but they don’t have the time to scour the market to find under-the-radar high-growth stocks.
Alerts keep you updated on the hottest stock opportunities, so you can get the most out of the market without sacrificing endless hours of your time.
Are you still 25+ years from retirement? If so, you could get a lot out of this investing service.
The more time these high-octane growth stocks have to grow, the better.
When you throw in the Starter Stocks and Best Buys Now guides, you could have all the information you need to build a retirement portfolio that stands the test of time.
How Much Does Motley Fool Rule Breakers Cost?
A one-year subscription to Rule Breakers typically costs $299, but The Fool’s introductory deal brings the price down to $99.
At that rate, you get more than 66% off the full sticker price.
This puts the price in line with many introductory newsletters. Given the sheer wealth of resources included, however, I’ll give this research service extra points.
There’s a reason why Motley Fool services are so popular. Members receive much more than trade ideas.
Plus, it’s all backed by a solid 30-day refund period.
Motley Fool Rule Breakers Review: Final Verdict
Motley Fool Rule Breakers is an excellent 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.
The firm’s investment research services have been leading the industry for years — even outperforming the S&P 500.
While it costs slightly more than some bargain-bin stock research services, it’s still much cheaper than other products. Plus, it comes with the peace of mind offered by a 30-day money-back guarantee.
Whether it’s a crystal ball or old-fashioned intuition, Motley Fool picks stocks with astounding accuracy.
One well-placed investment could easily make back the subscription cost.
It’s no exaggeration to say investing in just one home-run stock could see sizable gains. Imagine buying Intuitive Surgical and having the opportunity for 3,000%+ returns.
If you’re in the market for trade ideas with explosive potential, we recommend giving Rule Breakers a close consideration.