About Motley Fool
The Motley Fool Stock Advisor is the flagship stock-picking newsletter published by investment advisory giant, The Motley Fool. This is easily one of the most well-known stock picking services in existence.
You’ve probably heard of The Motley Fool in some form or another – whether it was an internet advertisement, word-of-mouth, or personal experience. In this review, we are going to provide an in-depth look at The Motley Fool Stock Advisor to see if this stock picking service lives up to the hype.
The Stock Advisor investment service aims to help investors beat the market by providing them with access to better stock picks. Motley Fool’s team researches investments and offers stock recommendations to its subscribers.
Since the program’s launch in 2002, the Motley Fool’s Stock Advisor recommendations have generated over 900% in returns (as of November 2024). These returns are highly impressive when compared to the broader market returns over the same period.
Investing in the Fool’s stock picks would have generated over 4X the returns of merely investing in the S&P 500. This means a $10,000 investment would have yielded close to an extra $40,000. The company’s track record is even more impressive when compared to the performances of mutual funds over the same period.
Of course, we needed to do our research to make sure the Motley Fool was legit. We did an in-depth analysis of the company and its offerings. Want to know whether or not you should pay for a membership? Stay tuned for some revealing insights. We’ve reviewed over 400 financial services, and this one was very interesting.
Our Motley Fool review will help you determine if the Stock Advisor program is a good fit for you. Feel free to jump around to the sections that are most relevant to you.
| Features | Monthly stock picks, starter stocks, investing education |
| Performance | 4X the Returns of the S&P 500 |
| Pricing | $199/year |
| ✅ Discounts | New Member Special Rate |
| Founded | 1993 |
| ♂️ Key People | Tom and David Gardner |
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History of The Motley Fool
Before we get to the review results, it can help to understand the company’s history. If you’re anything like me, you like to know who you trust for investment advice. I want to know that I am getting stock advice from credible advisers with a proven track record.
Motley Fool isn’t just another “pop-up” investing service you see advertised on your Facebook newsfeed or on a financial news site. This stock-picking service and its founders have a rich history.
The Motley Fool was founded in 1993 by Tom and David Gardner. The Gardner brothers shared their investment ideas on message boards and online publications.
They used a unique blend of humor and humility to showcase the research they used to discover undervalued stocks. Their refreshing approach to investing helped them grow a community of like-minded followers (aka “fools”).
The Fool’s goal was and is to empower retail investors to outperform Wall Street analysts and professionals.
In 1997, the company launched its official investing website at fool.com.
As the Motley Fool website grew in popularity, the team continued to expand its offerings. The Gardner brothers published many New York Times Bestsellers, syndicated newspapers, radio shows, and live podcasts.
Money management and investing services were launched, including “Real Money Portfolio,” which enabled subscribers to track the trades of real-money portfolios and in-house mutual funds managed by the firm. The Gardner brothers brought a refreshing element of transparency to the finance industry, and the Motley Fool quickly became a leader in investing and personal finance.
All of this goes to show that the Motley Fool is a well-established investment research company with proven results.
We’ve reviewed many of the company’s premium services, and we still believe the Motley Fool Stock Advisor is the best offering. Continue reading our review to see why.
What is The Stock Advisor Program?
The Motley Fool Stock Advisor is a simple program that offers stock picks to members.
There are no fancy pitches or complicated schemes. As a Motley Fool subscriber, you get stock picks that are expected to outperform the market – simple as that.
Members receive two new stock picks per month and a list of the best buying opportunities at any given moment.
The program’s founders, Tom and David Gardner, wanted to make it super easy for beginner investors to achieve the same returns as Wall Street fat cats.
The program’s goal is simple: to help average investors beat the market by providing them with the best research reports and stock recommendations. While investing may seem complicated, it doesn’t need to be. You simply need to know which stocks to buy and when.
What Do Stock Advisor Members Get?
New members have access to many investment resources, but the stock picks are the star of the service. When you sign up, you get instant access to a few different types of stock picks, including:
- 2 new stock picks every month
- Access to stock rankings and recommendations
Let’s take a closer look at each of these groups.
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Two New Stock Picks Every Month
Stock Advisor members receive two new stock picks per month. Every stock recommendation comes with an in-depth research report explaining the rationale behind the endorsement.
Members also have access to a record of every recommendation the company has ever made. The information is laid out clearly in a table so members can see how past recommendations have performed.
Motley Fool offers full transparency by showing its track record of both winning and losing investments.
You can comb through the list of previous recommendations to find stock picks that are still relevant today. This is a great way to get more value out of the membership if you are looking for more than two investment ideas every month. I’ve personally found some great investment opportunities by reviewing historical picks. This approach is particularly beneficial when the market is in a correction period. You can often find past picks that are available for a “discount” due to a recent drop in the market.
Stock Recommendations
If you are new to investing, the Motley Fool team recommends building a portfolio of 25 stocks that you plan to hold for at least 5 years.
If you already have an established portfolio, you can continue to add new stocks as the Motley Fool analysts make new stock picks every month.
If you are just starting to build a portfolio, Motley Fool offers a list of foundational stocks and updated rankings of the best stocks to buy now.
The foundational stocks are well-established, high-value companies that are likely to stand the test of time.
The Motley Fool Rankings list features over 200 stocks sorted by rank (where “rank” equates to Motley Fool’s conviction that the stock can beat the market in the next 5 years).
Rankings can be sorted by a variety of criteria, including:
- Motley Fool’s Rank
- Market Cap
- Time of Recommendation
- Dividend Yield
- P/E Ratio
- Revenue Growth
- 1-Year Return
- 5-Year Return
- And more
The Rankings list is beneficial for both new/casual investors and experienced investors. New investors can find vetted stock picks to add to their portfolios, and experienced investors can use the screener for idea generation.
While Motley Fool offers 2 new stock picks every month, the Rankings list provides over 200 recommendations (at the time of writing).
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What is Motley Fool’s Investment Style?
The Stock Advisor newsletter is a long-term, buy-and-hold service catering to investors with a long-term outlook.
The stock recommendations are based on the analysis of companies, management teams, industries, and other factors that help the team uncover high-growth stocks. Many of the recommendations are for blue-chip stocks in the technology industry.
Subscribers get stock recommendations from Motley Fool’s team of analysts.
Stock recommendation alerts are sent by email and accompanied by a research report. Each report explains why the stock was recommended, the best price to buy, and when to consider selling. The report includes a summary as well as in-depth research
Here is the investment profile that the Motley Fool Stock Advisor is best for:
- Long-term investors (buy and hold for 5+ years)
- Investors who prefer individual stocks to mutual funds
- Investors looking to beat the market
- Investors who want to add new equities to their portfolios monthly or annually
The service is an excellent fit for anyone who wants to rely on proven investment advice to beat the market.
Motley Fool Stock Picks & Performance
We’ve had a lot of people reach out and ask us to reveal some of the specific stock picks from Motley Fool. While the company shares some of its top picks like its early recommendations on Amazon, Netflix, Disney, and Nvidia, the rest of the picks are reserved for paying members.
We can, however, show the performance of the picks. Here is the performance of the 2024 stock picks as of November 2024:
Here is the performance of the 2023 stock picks as of November 2024:
Needless to say, the performance is impressive. Let’s dive deeper into what this performance means.
As paying subscribers of Motley Fool Stock Advisor, we noticed something interesting. When the market performs well, Motley Fool’s stock picks perform exceptionally well. When the market is weak, Motley Fool’s stock picks can be more volatile than the market itself. This is due to the nature of these growth stocks and is part of the reason why The Motley Fool advocates for a 5+ year holding period and portfolio diversification. The market always performs better over longer time horizons, and Motley Fool’s stock picks can be used to leverage your returns over time.
To date, subscribers have received hundreds of recommendations (two per month). Based on how the stocks performed from the recommendation’s date, these can best be categorized into three different types of recommendations.
- “Home Run” Picks
- “Beat the Market” Stocks
- Duds
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What we are dubbing “home run picks” are the stocks that have provided phenomenal returns. These are the recommendations that had the potential to provide life-changing returns. Here are some examples of stocks that provided returns exceptional returns:
A handful of picks have achieved these types of results, but you should be realistic in your expectations. If you get one of these every 1-2 years, your portfolio will be in excellent shape. The goal of the service is to help you build a diversified stock portfolio, so you shouldn’t expect to get rich off of a single stock recommendation.
The more common group of stock picks is what we’ve dubbed “beat the market stocks.” These are the bread-and-butter of the subscription service. These are the stocks that outperform the overall stock market by a considerable margin and make for a well-diversified portfolio. Here are some examples of recommendations from 2024 that are beating the market:
These stocks have impressive returns and have outperformed the S&P 500 by a considerable margin. These investments would beat most mutual funds and ETF’s, which is one of the main reasons I’ve been using Motley Fool’s Stock Advisor service for so long.
Of course, not every recommendation is a winner, but the winning picks far outnumber the losing picks. If you want to start investing in the stock market, you should have some type of “risk management” plan in place before you get started. How much money are you willing to risk? When will you cut losing positions?
While it’s pretty easy to simply follow the Motley Fool stock picks, you should have a contingency plan in the event you invest in a stock that turns against you. For example, I personally like to cut my losses when I’m down 10% on a position (I can always repurchase the shares later if the stock looks bullish again).
Conservative investors may cut losses at 5%, whereas investors who can stomach more risk may wait until 20-30%. It’s really up to your personal preferences, but you should always have some type of plan to mitigate risk. This allows you to maximize the upside potential while limiting the downside potential.
Motley Fool does issue the occasional “sell” recommendation, but, as you can see in some of the tables above, some of the picks have negative returns that may exceed your risk tolerance. If you can’t tolerate holding a stock that is down 40%, make sure to cut the position before it gets that far.
Now that we know how the picks perform, let’s take a look at how much the service costs (and whether or not its worth the money).
How Much Does Motley Fool Cost?
The Motley Fool Stock Advisor subscription costs $199 per year.
The Stock Advisor subscription is currently on sale, and a yearly prepaid plan is available for $99 (for new members). The annual subscription is backed by a 30-day membership fee-back guarantee. If, for some reason, you are unhappy with the service, you can contact the customer service team within 30 days to get a full refund.
Membership provides instant access to:
- Two new monthly stock picks from Motley Fool’s team of analysts
- The Top Stock Rankings
- Stock Research Reports
- A members-only community that allows community members to collaborate and connect with advisors
- Full access to the investment library, which includes an archive of stock reports
Once again, membership is backed by a 30-day membership fee-back guarantee, so you don’t have much to lose.
You can also cancel the service at any time. These types of guarantees are rare with investment newsletters since subscribers get instant access to valuable information. We respect that the company stands by the quality of its service.
Motley Fool Review – More Stock Advisor Benefits
Most subscribers sign up specifically for the stock picks. It’s a strong value proposition. For less than $10/month (with an annual subscription), you can get access to stock market picks that have the potential to return 100x your subscription cost. Better yet, these stocks outperform the market and help investors avoid mutual fund fees.
The stock picks alone make the subscription worth it, but membership comes with a few additional benefits. New members will have access to some great resources from the start.
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Investment Education
The members’ area provides access to some top-quality investment education and short lessons. Education is valuable for investors who want to learn more about personal finance and investing. While you may rely on financial advice and stock picks to build your stock portfolio, it can still be helpful to understand basic investing methodologies so you can feel more comfortable in the markets. If you are brand new to investing, it’s definitely worth checking out some of the resources and information the company provides.
Stock Advisor Community
As a Stock Advisor subscriber, you have access to an online discussion board where they can discuss topics ranging from personal finance to the stock market.
I was expecting this area to be relatively quiet, as I’ve seen many failed attempts to create message boards. I was pleasantly surprised to see that the discussion boards have a decent amount of activity.
They are not as active as InvestorsHub and other similar sites, but there are a handful of exciting conversations. This investment community offers a great way to connect with other investors, share ideas, and get answers to any questions you may have.
Motley Fool Special Reports
The Motley Fool Stock Advisor delivers a couple of stock recommendations every month. On top of that, the team will also issue special reports when there are unique opportunities in the market.
You’ve probably seen ads for Motley Fool’s double-down stock (or something similar). These reports are available to members of the Stock Advisor program. I really liked the fact that Motley Fool capitalized on short-term market trends. When there is a hot sector, it’s important to be “in the know” early, and the research reports give you early access to important information.
Is Motley Fool Trustworthy?
By this point in the Stock Advisor review, you should understand what the membership offers. The next obvious question is, “is the Motley Fool legit?”
The company is known for its bold marketing on social media and news sites, but do they deliver on what they promise?
We put them to the test with our rigorous screening process.
Here are a few things we took into consideration:
The Fool’s Track Record
The first point we analyzed during our Motley Fool review was the company’s track record. Past performance is the most important metric to look at when examining any investment research firm. We wanted to see if the team delivered on its promise to outperform the market.
We are happy to report that the Motley Fool Stock Advisor program has an incredibly impressive track record. Motley Fool’s portfolio has been beating the S&P 500 since 2002. We spoke to a few investors who have been using the service for years and have achieved excellent results. Member reviews and feedback have been overwhelmingly positive.
You can find a record of the Fool’s performance on the chart below:
As you can see, The Stock Advisor picks beat the returns of the S&P 500 by identifying stocks and sectors that are outperforming. This performance is no small feat. An investment of $10,000 in 2002 would have returned an extra $400,000+ if invested in the program’s stock picks (easily justifying the $99 first-year membership fee).
This chart isn’t just for marketing purposes. Members can access the details of every stock pick and verify the performance of the program. Here are some interesting highlights from previous picks:
- 10 recommendations have returned over 10,000%
- Over 30 recommendations have returned over 1,000%
- Over 150 recommendations have returned over 100%
Transparency
The members’ area includes a record of Motley Fool’s active recommendations. The list includes stock recommendations, the rationale behind the recommendations, and the performance of the Stock Advisor picks.
You can click on a stock ticker to get more information about the recommendation, including the dates of the recommendations (whether favorable or not).
In the spirit of full transparency, this list includes both winners and losers. Since its inception, here are the returns (as of November 2024):
- Stock Advisor Returns: 908%
- S&P 500 (for comparison): 175%
Stock Advisor’s picks outperform the market by a considerable margin.
I highly recommend reviewing the previous picks so you can better understand how Motley Fool’s stock picks perform in the long run. You may also find a few stocks that are still great buys.
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Quality of Investment Research
Motley Fool isn’t some “pump and dump” investment newsletter making manipulative stock recommendations. The company’s reputation depends on its performance, so the research needs to be top-notch. The Gardner brothers have been in this industry for decades, and they have a stellar reputation.
The stock research reports are thorough and unbiased. The reports don’t merely “hype” a stock; they present the full story and offer an in-depth analysis of the company being recommended. The reports include information on the companies’ performance, sector performance, upcoming catalysts, and the risk level of the recommendation. The reports even address counterarguments to the Fool’s judgment on the stock.
Some of the reports recommend stocks you may be familiar with (such as FANG stocks that have been outperforming the market), while others uncover hidden gems. The reports are well-researched and thorough.
The authors will also add a disclaimer if anyone currently holds a position in the stock they recommend.
Furthermore, the team will issue reports and alerts when it is time to sell a stock.
Shorter-Term Performance
There is one caveat worth noting.
Motley Fool’s stock picks perform well over long time periods (5+ years) in diversified portfolios (25+ stocks). The company does have losing picks, and even winning picks may perform poorly for periods of time.
For example, growth stocks declined considerably in 2022, with some dropping 50% or more. These stocks rallied again in 2023 and 2024 but they experienced some downside first.
Take Amazon (AMZN) as an example.
Motley Fool’s initial recommendations have generated exceptional returns.
In fact, all of the recommendations are now profitable. That said, the 2021 recommendation was down about 30% before recovering.
So, what does this mean, and what should members do?
First, members should remember the investment’s time horizon. A stock may have a bad year but still beat the market over longer timeframes. If you are investing with a five—or ten-year time horizon, you should not worry about short-term performance.
That said, it’s easy to get worried when you see your stocks drop in price. If this is the case for you, you have two options.
First, you can create your own rules for managing losses. For example, if you can’t stomach a loss greater than -10%, make it a rule to exit a position whenever you are down 10%. You can always buy back later. This is particularly important if you have a shorter investment timeframe and/or are nearing retirement.
Second, if you are a more experienced investor, you can do your own research to determine the best entry points for your investment style. I often use Motley Fool’s stock picks and research reports as a starting point instead of blindly following a buy recommendation. If I believe a stock is overvalued, I may wait for a better entry point.
Motley Fool recommends strong growth companies that are expected to perform well in the long term.
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What Type of Investor is Motley Fool Best For?
Motley Fool’s Stock Advisor is best suited for long-term investors who want to invest in individual stocks that will beat the market.
Short-term investors and swing traders may also benefit from the monthly stock alerts, as many of the recommended stocks are momentum picks that experienced rapid price appreciation. If you plan to trade a different time horizon than Motley Fool recommends, make sure you have your own game plan as well.
Motley Fool’s stock picks are intended to comprise a diversified portfolio of stocks that will be held for 5+ years.
When the market is strong, Motley Fool’s stock recommendations tend to perform well immediately.
When the market is weak, the picks will not always perform well right away.
Every investor appreciates immediate returns, but patience is key when investing with a long-term horizon.
We showed the performance of 2023 and 2024 stock recommendations earlier in this review. Here’s a look at the performance of 2017 recommendations:
The further back you go, the better the picks have performed (historically).
Overall, the Motley Fool service is straightforward. It is appropriate for both new investors and experienced investors (especially those who want their research done for them). Motley Fool does a great job of identifying unique investment opportunities and providing high-quality research reports.
Most investors (both new and experienced) are looking for great stock picks and investment ideas, and that is precisely what you get when you sign up for a subscription.
Is the Stock Advisor Program a Good Value?
As part of our Motley Fool review, we wanted to discuss the program’s value. Many investment advisers offer great stock ideas at a premium. We’ve reviewed services that cost as much as $5,000/year. So, is Motley Fool worth the money?
At $99, it’s hard to go wrong with Motley Fool’s Stock Advisor. The investment research is high-quality, and you can recoup your subscription fee with a single stock recommendation. Subscribers get instant access to a wealth of resources that will help them achieve better returns.
The cost of the Stock Advisor program is one of the reasons why it is so popular. As far as premium services go, $199/year ($99 for the first year) is very reasonable.
Every month, the Motley Fool team continues to put out high-quality research reports packed with compelling ideas. Overall, this is a great service and great value. Plus, the subscription comes with a guarantee, so you can get your money back if you are unhappy within the first 30 days.
Common Questions About the Stock Advisor Program
During our Motley Fool Stock Advisor review, we analyzed a few of their investment programs (and you can read reviews of those as well). The Motley Fool services are all high-quality (each with its own benefits). That said, the Stock Advisor service is the flagship offering. The stock picks provided by this advisory service are chosen using the investing methodology that made the Fool famous.
The team offers a range of other subscriptions that utilize different methodologies.
We recommend getting started with Stock Advisor and taking things from there. If you would like to get more Motley Fool stock picks after subscribing, you can take a look at the company’s other services or bundle multiple services with Motley Fool Epic.
The goal of the Stock Advisor program is to simplify your investing strategy. The company claims that you only need to commit 5 minutes each month to tune up your portfolio (i.e., invest in new picks, take profits, and cut losses when applicable). Personally, I spend a bit more time because I like to be hands-on with my investing. I usually spend about 30-60 minutes analyzing each new report, doing my own research, and adjusting my portfolio accordingly.
We cannot give this answer away since Motley Fool’s double-down stock pick is available for paying members. What we can say is this – don’t get caught up in the hype. The Stock Adviser program offers a ton of great stock picks every year. As a member, you will get instant access to a wealth of resources that will help improve your investment returns.
You may see advertisements for double-down stocks, triple-down stocks, ultimate buy alerts, mini Berkshire, and more. While these ads may seem enticing, you do not need to sign up for a single stock pick. You are paying for a bunch of great stock picks. The company has provided excellent stock picks and financial advice for almost two decades. There will be plenty of opportunities for members every year.
While you don’t need a specific amount of money to make use of the Stock Advisor service, you should make sure you have enough funds to invest. You will also want to make sure the subscription cost is reasonable (relative to your available capital). Investors with a minimum of $1,000 available to invest are likely to get the most value out of the service.
The Motley Fool is one of the few investment advisory services that has been around for almost two decades. It has adapted to all types of market trends, weathered both bear and bull markets, and continues to generate phenomenal returns.
The results speak for themselves.
This isn’t a stock picking service with a few lucky picks. It has a history of providing stock picks that beat the market. Its reputation depends on its ability to provide great stock picks, and that’s exactly what it has been doing.
We must respect the fact that Motley Fool’s Stock Advisor program is a premium offering. If we gave away the stock picks, we would be doing a disservice to the hard-working team that compiles the research. It’s also important to note that the stock picks change monthly. As a member, you will have access to a history of all of the previous stock picks as well as two fresh investment ideas every month.
Absolutely! The Motley Fool Stock Advisor service is one of the most beginner-friendly investment advisory services out there.
The analysts and authors who compile the reports make sure all of the information is easy to understand. If you are a new investor, this service is particularly beneficial because it helps you start building your portfolio the right way. You can start investing in strong companies set up for big growth over the next few years. Many new investors who go at it alone end up making costly mistakes. Getting the proper guidance from the start can have huge returns.
Furthermore, most of the recommendations the company makes are for companies with business models that are easy to understand. While this is not necessarily a reflection of the
quality of the picks, it does help new investors better understand what they are investing in (which is always advised).
Is the Motley Fool a Pump and Dump?
Absolutely not! Pump and dumps occur when a stock’s promotion leads to abnormal buying activity that is followed by a massive sell-off. These schemes are best orchestrated on small and micro-cap companies since their volume levels make them easier to manipulate.
The stocks that Motley Fool recommends are nearly impossible to “pump.”
Take a stock pick like “Amazon,” for example. There is almost no way that a newsletter recommendation could impact the stock since the volume is so high. Even if every Fool subscriber bought at the same time, it would hardly affect the stock’s price.
The main question you’re probably asking at this point is, “should I sign up?” So, is Motley Fool Stock Advisor worth the money?
If you’re looking for a service that recommends hot stocks, it’s hard to find a program better than Motley Fool’s Stock Advisor. At only $99 for the first year, the membership is definitely worth the money. You can quickly recoup the subscription cost from a single stock pick.
The Stock Advisor service exceeded our expectations, and customer reviews are overwhelmingly positive as well.
The Motley Fool service will renew at the “current price” of the service at the time (generally $199). That said, the company will often send a special renewal deal a month before your subscription ends.