Motley Fool’s Rule Breakers and Everlasting Stocks are two stock-picking services held in high regard. But how do they compare? We’re pitting Motley Fool Rule Breakers vs Everlasting Stocks to find out.
About Motley Fool
Motley Fool is a Virginia-based research firm that was founded in 1993 by brothers Tom and David Gardner, as well as long-time friend Erik Rydholm.
The Fool is one of the biggest names in investing research, and it has garnered an impeccable reputation over the years, even on The Street.
Its services are split into two camps, free and premium.
There are detailed blog posts, podcasts, etc. on the free side of the firm’s offerings.
These are all great resources, but where The Fool shines is its premium research.
The premium research services are packed to the brim with exceptional stock market insights, newsletters, analysis, and recommendations.
Some of Motley Fool’s premium services include:
Motley Fool’s Stock Advisor – The Stock Advisor service focuses on finding long-term plays with companies that have sound fundamentals and show the potential for solid growth. Its positions are typically held for 5+ years.
Motley Fool Options – Motley Fool Options is an options recommendation service that also doubles as an extensive educational resource. If you want to know the ins and outs of options trading, you’ll want to check this service out.
Motley Fool Everlasting Portfolio – This premium investing service provides instant access to Tom Gardner’s portfolio. Few services provide personal picks of a guru, so it definitely scores points for originality.
Motley Fool Epic Bundle – This bundles three foundational subscription services at a reduced price. The Epic Bundle combines Stock Advisor, Rule Breakers, and Everlasting Stocks.
The Fool has been at it for over two decades, so there are quite a few more services under its belt.
These are just some of the most notable.
Now that you know more about the firm, let’s take a look at Rule Breakers.
What Is Motley Fool Rule Breakers?
Rule Breakers is a subscription-based service that pinpoints valuable stocks with the potential for tremendous long-term growth.
It focuses on undervalued companies that can unsettle their industry.
Rule Breaker’s stock picks must meet a strict set of criteria to be considered, including:
Consumer Appeal – Rule Breakers focuses on organizations with built-in consumer appeal. This means that there needs to be a market and a customer base in place (i.e., no solutions looking for problems).
Solid Management – Rule Breakers selects for companies with excellent management teams that have a proven track record of success. The RB team evaluates the company’s financial backers as well as its leadership.
Competitive Advantages – Another essential characteristic of Rule Breakers stocks is companies with an X factor. X factors include distinguished leadership, IPs, and more.
Innovation – This service searches for organizations with disruptive technologies and an innovative foothold in the market. While these companies don’t need to be industry leaders, they must be capable of providing inventive solutions.
Business Practices – Companies must have sustainable business practices to ensure that they can continue to compete in the long haul. A lot can happen in five years, so the team selects companies that can maintain their growth over an extended period.
Perceived Overvalued Stocks – The team scours the market for organizations that financial experts believe could be overvalued. The reasoning is that folks will stay away from these stocks, but when trends reverse, they will rush in and potentially drive up the price.
What’s Included With Motley Fool Rule Breakers?
- Rule Breakers Newsletter
- Sell Alerts
- Rule Breakers portfolio
- Starter stocks
- Best Buys Now
Rule Breakers Newsletter
The Rule Breakers newsletter is the centerpiece of this stock-picking service.
It offers subscribers two stock picks a month and is packed with tons of valuable information about each recommendation.
These are high-octane growth stocks that have the potential for fantastic returns over a 5-year period.
If you’re familiar with the Motley Fool’s Stock Advisor program, you should have a pretty good idea of the quality you can expect.
You can check out our Motley Fool Rule Breakers vs Stock Advisor review for a head-to-head comparison.
While most Rule Breakers picks are intended to be held for about five years or more, the team will let you know ASAP if it’s time to back out of a position.
These sell alerts are rare, though.
In most cases, the Rule Breakers team prefers to see their picks through, and their selections are intended to weather market volatility in the long run.
Rule Breakers Portfolio
The Rule Breakers portfolio offers instant access to the service’s active positions.
This is a great addition and offers you even more picks to investigate.
That said, if you’re new to investing, you’re probably going to want to look at the Starter Stocks first, as they are specifically selected to help build new portfolios.
As we mentioned, Rule Breakers Starter Stocks offers newbies a list of foundational stocks for new portfolios.
These should probably be your go-to if you are just starting out or need to build a portfolio from scratch.
This feature contains some of the most highly rated stocks on the team’s radar.
If you’ve been trading for a while, there’s still a lot to get out of Starter Stocks.
You can use it as a benchmark to compare your current portfolio to some of Rule Breakers’ favorite picks.
Best Buys Now
Best Buys Now is a list of Rule Breakers’ top five stocks.
The list is updated every month after the team has time to analyze and reevaluate the long-term potential of its recommendations.
If you’re a Rule Breakers subscriber, you’ll likely be checking in on these picks as soon as they are released.
Motley Fool Rule Breakers Performance
Since its inception, the Motley Fool Rule Breakers has had an exceptional historical performance compared to the S&P 500.
The average potential return for all Rule Breakers stock recommendations from the establishment date to the present is +215%, according to The Fool website.
For reference, the S&P 500 recorded only 115% growth within the same period.
How Much Does Rule Breakers Cost?
Rule Breakers cost $299 on the Motley Fool website, but you can get that price marked down to $99 by using a special discount that we secured for our readers.
This is a substantial discount that puts the price into a range that most everyday folks could afford.
Rule Breakers Refund Policy
Rule Breakers has a 30-day money-back refund policy for new members.
This is a fair window to check out everything that the service has to offer and make an informed decision.
Some Motley Fool services only offer in-house credit, so Rule Breakers has one of the best refund policies offered by the firm.
Is Motley Fool Rule Breakers Worth It?
Rule Breakers is well worth the sticker price, especially at $99.
There’s a reason that this service is considered a direct competitor with Motley Fool’s Stock Advisor: it offers a ton of upfront value and has an exceptional track record.
Plus, with the 30-day money-back guarantee, you can test drive the service, and return it if you decide it’s not for you.
If you want an even deeper dive into the service, you can head to our Motley Fool Rule Breakers review.
Now that you know about Rule Breakers, let’s take a look at Everlasting Stocks.
What Is Motley Fool Everlasting Stocks?
The Everlasting Stocks portfolio leverages long-term positions that are considered by the team to be buy-and-hold-forever stocks.
Like Rule Breakers, it offers much, much more than stock picks: subscribers get access to a boatload of research materials and quality analysis.
Its recommendations will likely appeal to folks looking for more conservative investment positions.
The picks consist of companies that have strong fundamentals and demonstrate the potential to be mainstays in their industries.
So if you’re not looking for speculative stocks, then this might be a suitable alternative.
What’s Included With Motley Fool Everlasting Stocks?
- Monthly stock picks
- Sell alerts
- Quarterly updates
- Immediate access to 15 stock recommendations
- Ongoing analysis
Monthly Stock Picks
Everlasting Stocks originally provided one pick each quarter, but subscribers now have access to two fresh stock picks every month.
These are buy-and-hold stocks that are intended to be viable long after the typical 5-year holding strategy that Rule Breakers leverages.
With a steady stream of recommendations, the service makes it easy to start adding long-term plays to your investment strategy.
Before the change to the number of recommendations, Rule Breakers would have had the advantage, but Everlasting Stocks now stands on equal footing.
Everlasting Stocks Portfolio
The Everlasting Stocks Portfolio contains all the service’s active recommendations.
One stand-out feature here is that it has a tracker that lets you see the historical performance of each pick.
This is a fantastic inclusion that makes it easy to check how well a stock has performed since the team made a call.
It keeps the team honest and you up-to-date, so it’s a win-win.
Similar to Rule Breakers, Everlasting Stocks will immediately alert you if it’s time to change course on a pick.
The team doesn’t take leaving a position lightly, so you’ll definitely want to be in the know when outlooks change.
The sooner you leave a lackluster stock, the sooner you can replace it with one that shows more long-term potential.
Access to 15 Stock Recommendations
Unlike other newsletters that keep subscribers waiting, the Motley Fool Stock Advisor service provides access to 15 stock picks right off the bat.
You won’t need to hang around for a few months just to start building up your portfolio.
New subscribers might want to check out these picks first if they’re looking for a batch of quality stocks.
Motley Fool Everlasting Stocks Performance
Motley Fool Everlasting Stocks does not have the same performance data available as Motley Fool Rule Breakers.
That being said, the team behind the service has established an impressive track record over the years.
For example, Tesla and Shopify are a few growth stock picks from Tom and David Gardner that offered the chance at serious returns.
While Tesla took the lead with an over 10,389% price hike since its selection, Shopify has seen a 3,324% jump.
These are impressive figures, but because Rule Breakers has more data available, we’re going to have to give it the edge here.
We’ll keep you posted if The Fool publicly posts Everlasting Stocks’ average returns.
How Much Does Everlasting Stocks Cost?
The Everlasting Stocks service costs $299, but you can sign up to this stock-picking program for only $99 using our discount.
Because both services cost the same amount, it’s another tie.
Everlasting Stocks Refund Policy
Everlasting Stocks has an identical refund policy to Rule Breakers.
You get the same 30-day money-back guarantee (your cash back, not in-house credit).
Is Motley Fool Everlasting Stocks Worth It?
Everlasting Stocks has a very reasonable price tag when you consider the quality of research that you’re getting, so we can say that it’s worth it and then some.
The buy-and-hold-forever strategy is somewhat of a unicorn, as many research services focus on short-term positions.
For a full analysis, you can visit our Motley Fool Everlasting Stocks review.
Motley Fool Rule Breakers vs Everlasting Stocks: Which One Is Better?
Motley Fool Rule Breakers and Everlasting Stocks come at investing from entirely different angles, so it’s difficult to say which one is better.
What we can say is that there are some folks who each of these services may be better-suited for.
If you’re in the market for monthly stock picks that are focused on high growth, Rule Breakers is likely the better bet.
On the other hand, anyone searching for quality long, long plays will likely find more value in everlasting stocks.
Regardless of which service you choose, you can rest assured you’re in good hands.
You’re covered by a respectable 30-day guarantee backed by a firm that’s earned a rock-solid reputation over its two-decade run.