Which of Motley Fool’s premium services is best?
In this comparison
- Motley Fool Overview
- Motley Fool Stock Advisor
- Motley Fool Rule Breakers
- 3 Key Differences Between Stock Advisor and Rule Breakers
- The Bottom Line – Which is Best for You?
Motley fool overview
The Motley Fool was founded in 1993 by brothers Tom and David Gardner in Alexandria, VA. The company is a private financial advisory firm that employs over 300 people worldwide. The Motley Fool has a vast array of free information on its website and several different levels of paid services.
Since 2002, the company has been primarily a subscription-based business offering stock picks to investors and financial advice. The Motley Fool’s oldest service is called Stock Advisor ($199/year). They also offer other premium services like:
- Rule Your Retirement – $149/year
- Real Estate Winners – $249/year
- Rule Breakers – $299/year
- Everlasting Stocks – $299/year
- Epic Bundle – $499/year
Motley Fool promotes buying more than 25 stocks, holding them for at least 5 years, investing regularly, and letting the winners run.
Motley Fool’s stock picking services are popular because they are easy to follow and they have outstanding performance.
Motley Fool Stock advisor
The Stock Advisor service was introduced in 2002. This is Motley Fool’s oldest subscription newsletter. Tom and David Gardner both contribute along with their team of analysts who are responsible for the stock recommendations.
Stock advisor investment criteria
The Gardner brothers tend to pick solid companies with an outstanding track record and strong fundamental analysis. These are primarily “value stock” picks that have been around for a while and will be paying a dividend. Stock Advisor is like your wise uncle that always has a roll of hundred-dollar bills in his pocket.
Picking stocks on your own can be risky and difficult. Following a program like Stock Advisor might give you the guidance you need to stick to a plan.
What you get with stock advisor
After joining Stock Advisor, they send you a list of 10 starter stocks to build your portfolio. This list is updated monthly for newbies.
The main newsletter comes out on Thursday and you will receive two picks per month. That is 24 hand-picked stock recommendations with plenty of data and analysis to back them up.
You will also receive 24/7 monitoring with alerts for each pick. If they issue a sell for a recent pick, it is probably best to sell quickly and they usually have done their research. They don’t sell often.
You also are given tips for other stocks throughout the month when they think a stock is a good deal. They call this a “best buy now” pick. These are time-tested stocks that go on sale temporarily due to market conditions.
Along with picks you also get an abundance of information. News about the market, stock picks, and the economy. Plus, podcasts, videos, tutorials, and full access to message boards. The member-only areas within The Motley Fool provide a community of investors that have been following Stock Advisor and the markets for years.
If nothing else you are getting a great deal of stock market education just by following the newsletter and reading through the different articles on their website.
Follow this link to subscribe to Stock Advisor at a discounted rate.
Motley Fool Rule Breakers
The Rule Breakers service was launched in 2004. David Gardner is the mastermind behind these unique stock picks. David and his team of analysts are looking for companies on the cutting edge of technology, biotech, or other innovative companies.
Rule Breakers investment criteria
Fundamental analysis is used but the team also looks at companies that are on the edge of releasing something new into the market. They are searching for companies with the “it” factor and are poised to have a breakout year.
This stock-picking philosophy might even follow a gut feeling. Now if that isn’t a rule breaker – then I don’t know what is. However, Rule Breakers picks have consistently beaten the S&P 500 return.
What you get with rule breakers
For $299 per year, you receive a premium newsletter service similar to Stock Advisor. It includes two monthly picks and plenty of data and analysis to back up the picks. You will also be alerted about “best buy now” stock picks that originate from Motley Fool’s 200 favorite companies.
Like Stock Advisor, the Rule Breakers service also includes several starter stocks for new investors to build a portfolio in their first month. Likewise, the Rule Breakers service will periodically issue a sale alert if an event has taken place to change their dedication to the previous stock pick.
Click here to receive our discounted rate on Rule Breakers.
Thre key differences between stock advisor and rule breakers
- The Stock Advisor service is $100 cheaper than Rule Breakers
- Stock Advisor focuses on value stock picks from conventional companies while Rule Breakers is picking from newer companies that are trying to make a change in the marketplace.
- Overall Stock Advisor has shown a better return than Rule Breakers. Figures like this change constantly but according to Motley Fool’s website: Stock Advisor is up 372% vs the S&P’s 122%. Rule Breakers is up 210% vs the S&P’s 105%.
The bottom line: Which is best for you
If you are comfortable with buying newer, innovative growth companies in high-tech industries I would go with Rule Breakers. Rule Breakers will provide in-depth analysis with a team of experts and a track record of finding winners before they hit the mainstream.
If on the other hand, you are more comfortable looking for value stocks that have a good entry point, solid fundamentals, and a firm future – then I would go with the Stock Advisors service.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.