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  7. Motley Fool Review: Is Stock Advisor Worth the Money?

Motley Fool Review: Is Stock Advisor Worth the Money?

  • By Chris Dios
  • Sep 15, 2022

Many consider Motley Fool’s Stock Advisor one of the market’s top stock-picking services. But does it live up to its reputation? Check out this Stock Advisor review from a real member for the full story.

Let’s kick things off with a look at The Motley Fool.

The Motley Fool Review

The Motley Fool is an investment research company based in Alexandria, Virginia.

It was founded in July 1993 by brothers David Gardner and Tom Gardner, along with Erik Rydholm. Eric has since left the company.

These days, The Motley Fool is one of the most respected and established stock research firms around.

Fool offers a wide variety of premium services, but Stock Advisor is one of the company’s most popular offerings.

Other Motley Fool services include:

  • Rule Breakers
  • Everlasting Stocks
  • Rule Your Retirement
  • Motley Fool Options

These are just a few of The Fool’s offerings. This company has been around for almost three decades and has amassed a respectable catalog of services.

Most of the company’s focus is on stock picks, but it tackles a range of market niches, including ETFs, real estate, and crypto.

Motley Fool also has a range of free services that include podcasts, articles, and more. That said, I think its best insights are from the premium subscriptions.

reviews of motley fool

A little bit more info about Tom and David Gardner…

Tom and David Gardner are Motley Fool’s founders, and they’re passionate about educating everyday people and helping them attain financial freedom.

The Gardner brothers have been involved in finance for decades and established a reputation for integrity and honesty over the years.

The Gardners named the company in homage to the idea of a brutally honest court jester.

When Are Motley Fool Stock Picks Revealed?

The Motley Fool only reveals its picks to the general public long after they make a call. On the other hand, Motley Fool Stock Advisor’s picks are available to members on the first and third Thursday of each month.

Some notable hits that Motley Fool revealed after they took off are Tesla, Nvidia, and Amazon.

>> Find out why so many trust Motley Fool <<

 

newsletter stock picking service

What Is Motley Fool Stock Advisor?

Motley Fool Stock Advisor is an online newsletter where members can access monthly stock picks, buy and sell alerts, a community forum, and much more.

Its recommendations follow a long-term investment horizon, and members receive two new monthly stock picks.

This is The Motley Fool’s flagship stock-picking service, and it’s been around for over two decades.

Many folks consider this newsletter the gold standard in the world of stock-picking services. Considering the team’s historical performance, it’s easy to see why people feel this way. It has a long-standing history of beating the market by a wide margin.

While SA is technically a newsletter, I think it’s best described as an investment research package.

The two monthly stock picks are just scratching the surface of everything on offer. There’s also a robust portfolio builder, educational materials, and simulation tools, and an active investment community.

Is There a Free Stock Advisor?

Unfortunately, Motley Fool’s Stock Advisor does not have a free version of the service (there is a 30-day membership-fee-back guarantee).

However, The Motley Fool site contains detailed blog posts that offer stock tips. The company’s stock recommendations are only available for its premium services.

Is Motley Fool Stock Advisor Good for Day Trading?

Motley Fool’s Stock Advisor service is not good for day trading, as these stock picks are intended to be held for three to five years.

While someone could hypothetically day trade with this service, it’s not what the picks are selected for.

Many of the newsletter’s high-performing picks saw growth long after their recommendations. This makes a lot of sense, as these are growth stocks.

I’ll dig into performance a little further down. For now, let’s take a look at this stock-picking service’s investment strategy.

>> Already sold? Sign up for Stock Advisor today <<

motley fool stock picks

Motley Fool Stock Advisor Investment Strategy

Motley Fool Stock Advisor leverages a careful approach to investing. Its stock picks are meant to follow a long-term strategy that The Fool believes could better position members to make the most out of their investments.

Motley Fool’s overall investment strategy follows a six-point plan that applies to many of its services, including Rule Breakers.

Members are not required to follow these guidelines, but the team believes they could help improve returns with a Motley Fool premium subscription.

Here are some solid ground rules set by the team regarding its stock picks:

  1. Buy 25+ companies over time
  2. Hold stocks for 5+ years
  3. Add new savings regularly
  4. Hold through market volatility
  5. Let winners run
  6. Target long-term returns

Not every stock recommendation is a winner, but Motley Fool stock picks tend to perform admirably on average. That’s why the team recommends owning 25+ companies to spread risk and improve chances of success on the stock market.

What is not a part of The Motley Fool’s Stock Advisor Strategy…

Motley Fool’s Stock Advisor is dialed in to provide the opportunity for growth over a long period of time. Some strategies do not mesh with the core style of the service.

  1. YOLOing into one company
  2. Investing in a few stocks
  3. Panic selling during a market downturn
  4. Day trading
  5. Penny stock trading

Following the team’s strategy does not guarantee results. However, it does provide a formula to make the most out of SA’s stock picks.

Also, some Stock Advisor picks pay dividends, but it is not a core focus of its stock recommendations.

Motley Fool Stock Advisor Performance

Motley Fool Stock Advisor’s average return is up an impressive 400%* since its inception in 2002.

Something to note is that the stock market took a big hit in 2022, so these recent stats take that into consideration.

These numbers are reflected in the member’s portfolio as well — I checked.

Another interesting data point is that the Stock Advisor service has around 169 stock picks that have achieved over 100% returns.

Let’s take a look at Motley Fool’s chart.

stock pick chart

This chart shows the performance of Motley Fool Stock Advisor’s stock picks vs the S&P 500. These numbers date back to 2002 — the year this service was rolled out.

By following the trend of the chart above, the cumulative growth of a $10,000 investment back in 2002 could have net returns of around ~$225,000. These very impressive figures shed light on why so many folks trust Motley Fool stock picks.

The chart above shows that the SA portfolio dipped around 2021. The market has not been particularly kind lately — especially for growth stocks. This did affect the portfolio

Motley Fool recommends holding stocks for a three to five-year period at a minimum, so these swings don’t impact the overall strategy.

Stock Advisor’s Biggest Winners

While Stock Advisor’s average return is 400%*, many of this stock-picking service’s home runs have eclipsed this figure.

Before I get into it, here’s a quick disclaimer.

I’m going off the current numbers reflected in today’s market in August 2022. Many of the examples I’m sharing have provided a higher opportunity for returns before the market downturn.

The Motley Fool constantly updates its figures to keep its members and interested parties in the loop. The team is transparent to a fault, and I appreciate that they take the time to update the public and members about the performance of its stock picks.

Here are some of The Fool’s biggest winners to date.

First up is Amazon.

  • Stock Recommendation Date: 9/6/2002
  • Initial Stock Price: $0.77
  • Return: 18,293%

amazon stock

Since Fool made the call, Amazon’s stock catapulted an astonishing 18,000%. This is one of the biggest winners, but there are many more. I’ve seen this number around ~20,000% — the ~18,000% reflects the current market.

Time to turn our attention to Netflix.

  • Stock Recommendation Date: 12/17/2004
  • Initial Stock Price: $1.85
  • Return: 12,130%

netflix stock

Netflix’s stock price went up 12,130% since it was recommended. This is an even more impressive number considering that Netflix is currently down from its all-time high in 2021.

Before the price drop, Netflix provided the potential of about a 20,000% return. It was up there with Amazon for one of Motley Fool Stock Advisor’s biggest winners.

Let’s check out Tesla.

  • Stock Recommendation Date: 11/16/2012
  • Initial Stock Price: $6.37
  • Return: 13,475%

tesla stock pick

Tesla stock exploded in popularity in 2020, and its share price rocketed to new heights. However, Motley Fool was much quicker to the draw and recommended this stock years before the market caught on.

The Tesla call provided the opportunity for an astonishing 13,475% return.

Stock picks like these demonstrate the team’s uncanny ability to spot stocks with ridiculous potential.

Lastly, I’m going to check in on Booking.com

  • Stock Recommendation Date: 11/16/2012
  • Initial Stock Price: $6.37
  • Return: 8,148%

booking stock pick

Booking.com was a notable stock pick for the Fool back in its day. After the recommendation, the company has had a meteoric rise since it became a Motley Fool stock back in 2004. The current return is about 8,148%.

The Motley Fool picked it well before the online travel industry revealed its true economic potential.

Side Note About Stock Advisor’s recommendations…

Something that I really like about this service is that the team can issue several buy recommendations for the same stock periodically. This is great for new members who missed the boat on blue-chip stocks and don’t know when to time a proper entry.

Timing the market is difficult, even for folks who have traded for years. It’s nice that the service can help new members position themselves on a stock that’s already taken off.

This is all compelling info, but what does Motley Fool’s performance look like five years back?

>> See more Stock Advisor recommendations <<

Stock Advisor Data Based on 5-Year Holding Data (2017)

Because Stock Advisor recommends holding stocks for five years, it’s important to understand what a portfolio could look like based on its strategy and the performance of its stock picks.

I extracted the data from Motley Fool’s stock recommendations from 2017 to give an idea of what is possible.

But why look at 2017?

  • These numbers reflect a recent ~5-year holding period
  • This includes stock picks that are currently affected by the market downturn

Also, I’m specifically looking at 2017 — not every pick from 2017 and onward.

These figures used for the chart below were collected from Motley Fool’s Performance page on August 9, 2022.

Here’s what the numbers look like:

stocks picks 2017

These are the key takeaways for the 2017 stock picks:

  • Stock Advisor‘s average performance was +179%
  • The S&P 500’s average performance was +86%
  • Stock Advisor, on average, outperformed the S&P 500 by +93% 

Again, past performance is not indicative of future results, and these outcomes may not be typical. However, numbers like these offer a glimpse into Motley Fool’s track record as stock pickers.

Stock prices are constantly moving, so these numbers may vary depending on what’s happening in the markets. We update them regularly to keep them as accurate as possible.

motley fool comparison

Motley Fool Stock Advisor vs Rule Breakers

Motley Fool’s Stock Advisor and Rule Breakers are exceptional newsletters with excellent track records.

The foundation for these two services is very similar: each newsletter comes with many of the same features (including two new monthly stock picks), and they both have long-term investment horizons.

The main difference between these subscriptions is the stocks they target.

Rule Breakers searches for high-growth stocks from companies that have the potential to upset their industries.

On the other hand, Stock Advisor focuses on mid to large-cap stocks that could see steady growth in the long term. Some of its picks are blue-chip stocks.

Both services’ stock picks have had admirable performances since their inception, but there is a clear winner among the two. Stock Advisor has beaten out Rule Breakers on average in terms of overall performance.

According to Motley Fool, the average return for Stock Advisor stock picks is a massive 400%*, while the S&P locked in a respectable 128%.

SA pick performance

This is a substantial disparity, as Stock Advisor is 3Xing the S&P 500.

Let’s turn our attention to Rule Breakers’ average performance.

Since its inception, Rule Breakers has seen an average return of 231%* over the S&P 500’s 109%. So Rule Breakers is 2Xing the S&P, which is nothing to scoff at. That said, this performance falls short of Stock Advisor.

rule breakers performance

For reference, the S&P 500 is up 10% on average since its inception, so the performance of these Motley Fool stock picks is even more impressive.

Motley Fool’s flagship newsletter sets a high bar that few services I’ve reviewed have been able to meet.

That said, Rule Breakers is still an exceptional service that’s worth picking up in my opinion. Stock Advisor’s more consistent performance can be a counterbalance to Rule Breakers’ high-growth stocks. This appears to be a fairly common sentiment online.

Motley Fool offers a service called the Epic Bundle that packages Stock Advisor, Rule Breakers, and Everlasting Stocks together.

The draw here is that members get access to all three subscriptions at a substantially reduced rate. Members get a range of stock picks that target completely different strategies.

While Motley Fool Epic Bundle offers a hefty discount for all three services, Stock Advisor is cheaper individually.

sign up

Signing Up For a Stock Advisor Membership

Signing up and getting started with the Stock Advisor service is straightforward.

Anyone interested in signing up can do so through The Motley Fool website, or click on any of the links in my review to access a 50%* discount for new members.

On the landing page, simply fill payment details out and confirm payment.

After signing up and logging into the account for the first time, new members are asked a series of brief questions and sent to the stock portfolio allocation tool.

After that, members can dive into the dashboard, and check out past and present stock picks.

It only took me a few minutes to get things going when I signed up. However, mileage may vary.

Note: This service does not provide a brokerage account. However, the team does offer some recommendations on brokers worth considering.

>> Join The Motley Fool Today <<

What’s Included with Motley Fool’s Stock Advisor Service?

Motley Fool’s Stock Advisor service is packed to the brim with stand-out features.

Here’s a brief explanation of each:

  • Monthly Stock Picks – New stock picks on the first and third Thursday of the month. The picks typically rotate between two teams: Everlasting and Rule Breakers.
  • Dashboard – This is members’ go-to spot for the latest stock picks, investment tools, and more.
  • Watchlist – Members can effortlessly set up a watchlist for stock recommendations.
  • Sell Alerts – The team issues sell alerts when an opportunity diverges from the initial investment thesis. These alerts are rare. Stock picks are meant to be held through volatility.
  • Best Buys Now – The team offers around 10 stocks each month that they believe could be in a good position to buy now. These are not traditional buy recommendations.
  • Starter Stocks – These stocks offer a strong foundation for any Stock Advisor portfolio.
  • News and Reports – Motley Fool pens supplementary research in the form of articles and bonus reports.
  • Company Overview – A profile of a company that provides a price chat, info about the company, relevant articles, and more.
  • Stock Screener – This tool lets members screen stock recommendations.
  • Trading Education – Motley Fool packs in a ton of trading education materials and tools to help newcomers get up to speed with the service and strategy.
  • Community Forums – These forums allow Motley Fool members to interact with one another and share market insights.
  • Investment Simulation Tools – These tools simulate the effect that different holding strategies could have on a portfolio’s overall performance. 
  • Portfolio Allocation Tool – This is a portfolio-building tool that provides a range of options based on risk levels and investment horizons. Members can populate it with picks from the Motley Fool universe of recommendations.
  • Video Content – Motley Fool provides a range of video content that includes podcasts, interviews, recommendation releases, and more.
  • Extra Features – Valuable features that are outside the core list of offerings.

Keep reading my Motley Fool Stock Advisor review for the full scoop on each feature included with a subscription.

2 New Stock Picks Each Month

Motley Fool Stock Advisor members get two new stock recommendations delivered to the dashboard on the first and third Thursday of the month. These stock picks include the ticker, supporting research, risk analysis, and more.

Another great feature of the monthly newsletter is that it gives a 1-minute snapshot that details why the stock has potential. This is helpful for folks trading on the go or a busy person who wants to browse opportunities before really digging into the research.

The stock picks typically rotate between two teams: the Everlasting and Rule Breakers team.

Here’s a quick snapshot of Tesla (NASDAQ: TSLA), back in Nov 2012.

stock picks

Something that Stock Advisor excels in is its risk analysis. I rarely see stock-picking services that spend so much care outlining the potential pitfalls of an investment.

If I’m considering a stock recommendation, I want the investment thesis to cover all the bases — not just giving a buy rating backed by thin research.

Note: If a member already holds a stock that is a recent recommendation, this could still be a good opportunity to strengthen a position, but the team does not recommend overexposing a portfolio to a single company.

Consistency is the name of the game, and the team’s general guidance is to spread out investments as mentioned above.

>> Click here to see the latest stock picks <<

Dashboard

The dashboard is an underrated feature of the service.

I was pleasantly surprised by how clean and organized the interface was the first time I logged into my account.

Here’s a quick look…

dashboard

This stock-picking service packs in many more features than a typical investment newsletter. Still, everything is easily accessible.

It might not seem like much… but anyone who’s ever joined an email-only newsletter or a service with a clunky UI could empathize with what a relief it is to have so many features neatly organized.

There was a very minimal learning curve to finding everything I needed. The same can be said about using the tools (more on these later).

All in all, I found navigating the dashboard very intuitive.

Sell Alerts

If the Motley Fool Stock Advisor team feels that a company has moved away from the original investment thesis, they will issue sell alerts. These sell recommendations follow a similar style of info delivery as the stock picks.

The team outlines in painstaking detail how the company, sector, or market is negatively affecting a stock’s current outlook.

Sell alerts are typically rare, but they do happen.

Members can find them on the sell alerts tab in News and Updates.

sell stock recommendation

Where these sell alerts differ from most newsletters I’ve seen is that they are less focused on getting out to make a profit and more about protecting an investment.

The Motley Fool Stock Advisor service recommends holding a stock for 3-5 years minimum, but there typically isn’t a hard date to sell stock picks.

A major component of this stock-picking service is letting winners ride, which is why Motley Fool doesn’t issue sell alerts as often.

Also, some stocks that were issued a sell alert can be picked in the future.

Watchlist

The watchlist is another great feature provided by The Motley Fool. It lets members save a stock so they can keep an eye on it down the road.

The watchlist button is integrated into many of the service’s functionalities, which makes adding to the list a breeze.

Members can click on the heart to add it to their list of watched stock picks.

watchlist for motley fool stock picks

I find it very useful for dog-earing a basket of stocks that I want to take a deeper look at later. For instance, if a company pops up on the Best Buys Today list that I’m interested in, I’ll save them for later.

Something I appreciate is that I can toggle stocks on and off my watchlist without actually moving over to the dedicated Watchlist page.

Another fantastic feature is marking stocks as “bought”, which helps keep track of an active portfolio. Members can click the heart twice to set the stock to “bought.”

Best Buys Now (Timely Buys)

Best Buys Now, AKA timely stocks, is a list of around 10 stocks that the team believes could be in a good place to buy now.

Motley Fool refers to these as “our current favorite investment opportunities to hold for 5 years as part of a diversified portfolio.”

Best Buys Now are at least updated twice a month. Members can find these stocks by clicking on the Best Buy tab in the menu.

Something to note is that these stocks are separate from the Best Buys Today picks. There can be an overlap in the stock picks, but these are not the same list.

Best Buys Now is a good feature that helps Motley Fool Stock Advisor members get a sense of what stocks the team believes might have extra momentum behind them.

Considering that there are more than ~180 active recommendations (as of Aug 2022), it’s helpful to get a shortlist from the team.

>> Start setting up a watchlist today <<

Starter Stocks (Foundational Stocks)

Starter Stocks (also referred to as foundational stocks) include 10 companies that the Stock Advisor team believes are a strong basis for any growth-focused portfolio.

I think “foundational stocks” is the most apt description of what this selection of company shares stands for. In The Fool’s own words, these stocks are “ten companies that best represent our fundamental investing principles.”

These stocks could be for everyone — not just rookies building a fresh portfolio.

starter stocks

Here are the makings of a foundational stock as described by Motley Fool’s Stock Advisor team:

  • Scalable financial position
  • Stakeholder-conscious business practices
  • Business with undeniable, long-term tailwinds
  • Invested and visionary management team
  • Reasonable valuations in context of long-term opportunities
  • Sustainable competitive advantages
  • Reasonable and nonbinary risk profiles

The Motley Fool clarifies that not every foundational stock will check all of these boxes.

For members building a new portfolio, these stock picks could be a great anchor. On the other hand, they could add even more stability to a developed portfolio.

News and Reports

A membership to The Motley Fool Stock Advisor service also comes packed with supporting research that includes market news and reports.

Like the stock picks, these resources are archived. Members can check out any past articles that are not immediately available on the dashboard.

Here’s what it looks like when visiting the Bonus Reports section:

bonus reports motley fool

These are all solid pieces of supplemental research.

I especially enjoyed reading One Stock for the Cannabis Boom. It offered a very fascinating angle on a company that I didn’t know could benefit from growing interest and the legalization of cannabis.

It’s just a suggestion, but I’d recommend checking this one out first. I found it especially informative.

Many of the bonus reports add greater context to Stock Advisor picks and highlight a company’s unique potential to grab a piece of market share.

The tickers for the companies mentioned are on the preview for the article. This makes it simple for members to scope out supplementary research about a stock they’re interested in.

>> Access exclusive Motley Fool bonus reports <<

Stock Pick History (Performance Page)

The team is very big on transparency. Members can check out every Motley Fool Stock Advisor pick ever made on the service.

By visiting the Performance page, members can see the active stock recommendations. The page shows a company’s stock ticker, recommendation date, stock prices, return rate, performance against the S&P 500, and more.

performance page

By scrolling to the bottom of the page, members can change the view to see every recommendation. Any Stock Advisor picks with a sell alert will be crossed out, so they are easy to spot.

Clicking on a stock symbol will open a new page that comes complete with a chart and extra info on the company (I’ll touch on this more in the next section).

Something I really like here is that the stock chart is dotted with blips that show the dates that a stock has been recommended to Motley Fool members. It’s a very nice touch that makes it easy to track the history of its stock picks.

Also, there is a button that lets members see the article where the stock was initially recommended.

I gushed about the UI before, but it is clear that The Motley Fool puts in a great deal of effort to make this info as accessible as possible.

Company Overview

As mentioned above, by clicking on any ticker in Stock Advisor’s performance section, members can see a comprehensive overview of each company.

Some of the info includes a price chart, buy and sell recommendations, company details, and supporting research (news and analysis).

company profile

The news and analysis could be a big plus for anyone looking to do a deep dive into a stock. Something I especially like about this section is that it includes important info and updates after the initial recommendation.

articles

This is a great way for members to stay in the loop about the team’s developing perspective on Motley Fool stocks.

Other sections include community chats about the stock, user sentiment, financials, valuation, and ownership.

There is also a spot at the bottom where The Fool lists similar companies. This is especially useful if someone is not quite sold on a stock and wants to check out other options.

All in all, the company overview is a stellar resource for doing some serious due diligence.

>> Learn more about Motley Fool’s stock picks <<

Stock Screener

Motley Fool members get immediate access to a handy stock screener that lets them quickly sort through recommendations.

A feature like this is fantastic for self-directed investing. The screener can dramatically reduce the amount of time it takes to conduct research.

Stocks can be filtered based on:

  • Asset class – Large, international, mid, and small
  • Conviction – High, positive, neutral, and negative
  • Price – < $100, $100-$500, $500-$1000, and > $1000
  • Sector – Services, technology, communications, health, financial, and more
  • Volatility – High, average, and low

Here’s what the stock screener sidebar looks like…

stock screener side bar

Motley Fool is a bit of an outlier by providing a dedicated screener. This makes sense, though, as many stock-picking services don’t have as many open recommendations.

I’m a big fan of this feature, and it’s something I’d like to see more in the industry.

Another plus is that members can add stocks to the watchlist on the stock screener page. Members can also toggle the display to only view tickers on the watch list.

One quick caveat: not every screenable company is a current recommendation.

Trading Education

Motley Fool has a vast library of proprietary stock market research and analysis, and members can access it all when they sign up for The Motley Fool Stock Advisor service.

This massive collection of investing resources includes extensive lessons on various investing topics, and people of all skill and experience levels are sure to find something that can help them with their own stock-picking ventures.

The Motley Fool stands out among other services in this regard because the company offers much more than research and stock picks. It is a great place to learn how to navigate the stock market in general.

Community Forums

Subscribing to Stock Advisor gives immediate access to Motley Fool’s community. Members can frequent the forums to ask/answer questions, discuss trade ideas and investment philosophy, and more.

This was one of the first places I checked out when I got into the service, and it did not disappoint. Members are very active, and there’s a lot to learn here.

The message boards on the Motley Fool website are a great place to find new stock tips, connect with like-minded investing enthusiasts, pick up some new trading tricks, and much more.

Here’s what the Forums look like:

motley fool forums

Motley Fool has legions of long-time supporters, and many of them hang around the investing community to share their experiences and expertise with newcomers.

There’s also a message board for non-Stock-Advisor picks that’s fantastic for members who want to have a back and forth about their own trade ideas.

The community is very informative.

One conversation I came across that stuck out to me was a very insightful post about the Fool’s evolving philosophy on SPACs. There was also a great thread where members were explaining ETF-inception (ETFs within ETFs).

>> Join a bustling trading community <<

Investment Simulation Tools

A Motley Fool Stock Advisor subscription offers access to a range of exceptional simulation tools.

Like its other features, these tools are very user-friendly.

The simulators do not offer a prediction of future stock performance. They are intended to give members an idea of what their strategy could achieve in the long run.

Let’s start with the first one, Probability of Positive Returns.

stock pick simulator tool

The Probability of Positive Returns Simulator extrapolates what an average return could look like based on the selected investment horizon and the number of stocks held.

I think this tool does a great job of visualizing Motley Fool’s investment strategy. It also gives a good idea of the importance of spreading an investment across multiple stocks to improve chances in the market.

Next up is the Profit Value Simulator.

profit value simulator

The Profit Value Simulator shows how much an investment could grow based on the initial portfolio value, number of stocks, and holding period.

It then gives a theoretical average return, losses, and best-case scenario for gains. Like the Probability of Positive Returns, this tool does not predict outcomes.

While I enjoyed these tools, they are more along the line of educational resources. So they are best for beginners in my opinion.

Portfolio Allocation Tool

The portfolio allocation tool is fantastic, and I recommend new members check it out early on if they’re looking to create a new portfolio from scratch.

There are ten portfolios to choose from, and they offer a basic outline for asset allocation.

The three main categories are Bold, Cautious, and Neutral. The subdivisions of these categories are based on how long the portfolio will run: 10-30 years.

Here’s a quick snapshot…

portfolio allocator tool

What takes the tool to the next level is that it can be populated with recommendations found in the Motley Fool universe.

Depending on the portfolio selected, it will offer a balance of:

  • Large-cap stocks
  • International stocks
  • Small-cap stocks
  • Mid-cap stocks
  • Real estate

Something to consider is that members cannot access Motley Fool’s real estate picks unless they’re subscribed to a service that offers them. A few good options are Millionacres Real Estate Winners and Mogul.

I’ve reviewed them both and rate them highly.

>> Start building a portfolio today <<

motley fool videos

Video Content

The Motley Fool Stock Advisor service offers a range of premium video content. These videos are well-suited for members looking to keep up with the markets on the go.

One of the biggest draws is Motley Fool Live. It’s a premium stream that airs Monday through Friday.

motley fool live

Each episode of Motley Fool Live runs about thirty minutes to an hour and covers investing basics, stock deep dives, industry overviews, executive interviews, and more.

Members also have the opportunity to ask Motley Fool analysts questions live.

My favorite videos are the ones announcing a new stock pick. Some of them run for about an hour, so members get some additional context stirred up from the back and forth between speakers.

Something I also appreciate about these videos is that they give a sense of what is going on in the broader Motley Fool universe.

The stock recommendation articles are very much Stock Advisor-centric (as they should be). However, the video content gives a great range of competing and complementary market insights.

Other videos in the catalog include stock tips and market analysis from Tom Gardner. Unsurprisingly, he offers pretty fascinating insights about investing strategies.

I recommend checking out both the written and video content. They synergize exceedingly well together.

>> Check out the Motley Fool’s extensive video library <<

Extra Features

Just for clarity, Motley Fool doesn’t have a tab called “extra features.” This is a list of features that are well-worth diving into, but they aren’t the core focus of this stock-picking service.

  • 10% Promise – When a stock moves at least 10% up or down in a day, Motley Fool’s Stock Advisor team explains what happened. These are long-term plays, so this isn’t required reading, but it’s nice to get an update on what’s moving the needle in the portfolio.
  • Monday Briefing – Every Monday, Motley Fool offers a brief that keeps members in the loop about what’s going on in the markets. It’s a great way to start the trading week.
  • Mindset – This content contains articles that help members understand how to incorporate the service’s mindset and insight into their trading arsenal. There’s a bunch of solid material here that covers topics like general investing tips and trading psychology.
  • Multimedia Tab – There’s a multimedia tab that contains stock pick announcements and other happenings, such as interviews. Though, it’s mostly populated with stock pick announcements. The announcement is paired with a video explaining the pick and transcript.
  • Stocks to Buy Today – The team offers their top stocks to look at for the day. This isn’t the same as a buy rec. I think a good way to look at it is that these stocks could have a bright future and are worth further investigation.
  • Top Movers Today – Motley Fool has a sidebar on its dashboard that shows stocks that have seen the most movement — up or down. 

These are fantastic features that add an extra wrinkle of value to this Motley Fool membership.

Motley Fool Stock Advisor Pros and Cons

I found a lot to like during my Motley Fool Stock Advisor review; though, there are a few downsides to keep in mind.

Pros

  • Quality stock picks – Motley Fool Stock Advisor’s stock picks are backed by expert research and a team with a track record for beating the market.
  • Great price – New members can access a 50%* discount on the first year of a subscription.
  • Fantastic community – Motley Fool’s members-only forums are a great place to workshop investing strategies or find new opportunities.
  • Packed with extra features – This service offers a whole host of impressive features and tools outside stock picks.
  • Beginner-friendly – This stock-picking service offers plenty of resources geared specifically toward fresh faces on the stock market.
  • Plenty of trade ideas – The current stock portfolio contains over 100 active stock recommendations backed by supporting research.
  • Exceptional performance – The service has beaten the market 3X to 1.

Cons

  • Frequent emails – Motley Fool’s emails can stack up fairly quickly.
  • Growth-focused – Stock picks are not well-suited for day traders or penny stocks.

>> Access all these benefits today <<

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Is Motley Fool a Pump and Dump?

Motley Fool is not a pump and dump. In fact, its investment strategy is the polar opposite of stock-picking pump and dumps.

For one, pump and dumps typically target penny stocks. They are easier to manipulate because of low-trading volume, among other factors. The lax rules regarding financial disclosure also make it much easier for penny stock companies to fudge their numbers.

Motley Fool deals mostly in mid-cap stocks and above, which have much more trading volume and firmer financial disclosures.

Also, we have covered this in more detail previously, but the Motley Fool team has extensive safeguards in place to ensure transparency.

I have seen some chatter online about some stocks going up a small amount after a recommendation from Fool. But any price increases are insignificant in the long term.

When I covered Motley Fool’s biggest winners earlier, the majority of the growth occurred years after the call was made.

From my research into other Motley Fool stocks, this also appears to be the case.

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Is Motley Fool Legit?

Motley Fool is legit. Full stop. The team has been in the biz much longer than most, and they have an exceptional track record when it comes to their stock-picking services.

In its three-decade run, The Motley Fool has amassed a catalog of high-quality investment services that hit a range of niches. They tackle crypto, commodities, options, and more.

More importantly, this company has survived several market downturns. It’s seen the Dot Com Bubble, the Great Recession, the Covid bull and bear market, and much more.

Motley Fool has immense staying power, and this doesn’t look to be changing any time soon.

Another layer of legitimacy offered by Fool is its performance. Motley Fool’s stock picks are permanently logged into its Performance page.

Any member is welcomed and encouraged to revisit past picks.

Plus, the team has very strict policies that its researchers must abide by.

Who Gets the Most Out of Stock Advisor?

A Stock Advisor subscription could appeal to a variety of folks. However, so may get more out of it than others.

Here are some people who the service could be a great fit for.

Long Haulers

Stock Advisor picks typically have a 5+ year investment horizon. This means that the service could appeal to folks looking for a steady stream of long positions.

The team’s entire strategy focuses on providing calculated trade ideas that reduce risk and maximize the potential for returns. Growth-focused portfolios could benefit greatly from this careful approach.

Many of SA’s biggest winners have held out in the long term and have steadily appreciated since their recommendation.

The stock picks I outlined in my performance section demonstrated some impressive recommendations that have seen tremendous growth over 10-15 years.

Fresh Faces on the Stock Market

This is one of the more beginner-friendly stock-picking services that I’ve run across in the investing space.

Stock recommendations are penned in painstaking detail. The team lays out an easy-to-understand and comprehensive overview of investment opportunities.

Couple this with Best Buys, Starter Stocks, and a portfolio generator, and members could have their work cut out for them.

If members ever feel lost at any time, they can head to the forums and get insights from peers. The community is very knowledgeable and focused.

Busy Bees

Stock Advisor picks and research are a great fit for folks who don’t have the time to scour the market for quality companies. As mentioned above, I enjoyed the short briefs included with the stock picks.

Quality-of-life considerations like this make Motley Fool’s analysis effortless to skim and revisit. Plus, the stock recommendations provide a solid balance of being informative while respecting members’ time.

>> Think this service is a solid fit? Sign up here <<

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How Much Does Motley Fool Stock Advisor Cost?

Typically, a Stock Advisor membership costs $199. But right now, The Motley Fool is running a special deal where new members can sign up for just $99* for the first year.

This 50%* discount has no strings attached. New members get access to everything I mention in my review.

This is an introductory deal, so it’s important to note that there’s a recurring billing cycle that will bill members for the full price when the subscription renews 12 months later.

$99* for the first year is an excellent deal. There are plenty of alternatives out there in the same price range that do not have a fraction of what the service offers.

Motley Fool Stock Advisor Membership-Fee Back Guarantee

Motley Fool’s Stock Advisor offers a 30-day membership-fee back guarantee on the cost of a subscription. To be crystal clear, this is cashback — not in-house credit.

The refund period does not provide enough time to see a position to its conclusion. However, it does give a comfortable window to gauge the quality of insights on offer.

Thirty days is the industry standard, so I typically wouldn’t give extra points here. That said, there is something I think is worth putting into perspective about why I feel this membership-fee-back guarantee is pretty exceptional.

While many stock-picking services give a thirty-day money-back guarantee, it’s rare (in my experience) to see a newsletter that offers as much upfront value as Motley Fool Stock Advisor.

Motley Fool delivers much more than trade recommendations. Members get access to a ton of information and tools as soon as they join.

These resources could be more than enough to keep them busy for the trial period.

Is Motley Fool Stock Advisor Worth the Money?

Stock Advisor is an excellent newsletter, and it comes at a great price. I think anyone interested in growth stocks should give this Motley Fool service a close consideration.

Many regard The Motley Fool as the gold standard when it comes to market research. After reviewing several of this company’s subscriptions, I think that is a fair assessment.

The team has consistently provided market-beating picks over the past two decades. This rock-solid track record speaks for itself.

Plus, a subscription comes with additional features to help members make the most out of the market.

For new faces on the stock market, Stock Advisor’s recommendations and resources are a great place to start. 

On the other hand, someone with more experience in growth stocks might appreciate the team taking on the heavy lifting.

All in all, Motley Fool’s Stock Advisor is a fantastic research package that is well-suited to folks of all experience levels.

>> That’s it for my Stock Advisor review. Click here for 50% off <<

 

*Motley Fool Stock Advisor returns are 400% as compared to the S&P 500 returns of 128% as of 8/15/22. Rule Breakers returns are 231% as compared to the S&P 500 returns of 109% as of 8/15/22. Past performance is not a guarantee of future results. Individual investment results may vary. All investing involves risk of loss. 

*Based on $199/year list price. Introductory promotion for new members only.

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Chris Dios is an American writer and entrepreneur from New Jersey. Chris began investing back in 2018, and he specializes in swing trading, fundamental analysis, and long-term investing.