Motley Fool Stock Advisor
$99 / first year
Product Name: Motley Fool Stock Advisor
Product Description: Motley Fool Stock Advisor provides two monthly stock recommendations ideal for buy-and-hold investors.
Summary
Motley Fool Stock Advisor highlights two stocks monthly with the potential to outperform over the next three to five years. This entry-level service is ideal for new or experienced investors with a long-term investment strategy instead of short-term trading with continual portfolio turnover. Enjoy a discounted membership for the first 12 months and a 30-day membership-fee back guarantee.
Pros
- Two new stock picks each month
- Many open recommendations in the model portfolio
- In-depth research reports
- Performance tracking tools let you build a watchlist
Cons
- There might be too many recommendations
- Not every stock pick makes money (which says more about the market than the picks)
- Doesn’t use stop losses for risk management
- 50% off the annual fee is only for the first year
Motley Fool Stock Advisor is an entry-level stock recommendation service. It makes it easier to find stocks with the potential to beat the market and implement a long-term investment strategy. You get two new recommendations each month for stocks to “buy and hold,” which requires less portfolio maintenance than short-term trading.
🔃 Updated July 2024 with the latest discount promotion, 50% off your first year. We also have added a list of alternatives to Motley Fool’s services.
At A Glance
- Two monthly stock picks
- Long-term investment strategy
- Model portfolio stock screener
Who Should Use Motley Fool Stock Advisor?
Motley Fool Stock Advisor is best for new or experienced stock investors looking for investment ideas they ideally plan to hold for three to five years. The suggested minimum portfolio size is $25,000. It is an entry-level product focusing on well-run companies from various industries with encouraging growth potential.
Unlike most stock investment services, this one doesn’t use stop losses to sell model portfolio positions if the share price drops by a specific amount. As a result, you must be comfortable holding shares through potential downturns when others may typically sell.
Motley Fool Stock Advisor Alternatives
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| Price | $34.95 per month/ $199 annually | $214 first year, then $239 | Free |
| Core Feature | Analyst ratings and reports for stocks, ETFs, and mutual funds | Quant Ratings and independent commentary for stocks and ETFs | Fundamental stock and ETF screener with over 700 metrics |
| Free Trial | 7-days | 7-days | N/A |
| Learn More | Learn More | Learn More |
Want stock picks that outperform the market?
The Motley Fool Stock Advisor has 3X’ed the S&P 500 over the last 20 years, outperforming the market 3-to-1 with 173 stock recommendations with 100% returns.
With 750,000 members, Stock Advisor is now 50% off – just $99 per year or $1.90 a week.
Try it for free for 30 days and if you’re not happy with your returns, you get a full refund.
👉 Learn more about Motley Fool Stock Advisor
(Offer expires March 31, 2024)
What is Motley Fool Stock Advisor?
Motley Fool Stock Advisor was launched in 2002 and finds highly liquid and well-known stocks poised for growth in many industries. You get two new monthly recommendations with an in-depth analysis of why you should invest and the potential risks. Not all entry-level newsletters or reports give you the same amount of research.
It’s an excellent fit for most investors as it’s The Motley Fool’s flagship service. It offers many actionable ideas for building a diversified portfolio of individual stocks and a budget-friendly annual membership fee.
In addition to two monthly stock picks, Stock Advisor offers these keynote features:
- Foundational Stocks: A list of ten stocks with low volatility and high potential performance you might choose first. The Motley Fool also calls these recommendations Starter Stocks as they are typically a versatile cornerstone for most new and established portfolios.
- Top 10 Rankings: These are the best active recommendations to buy now as they have the most upside potential.
- Performance Tracker: You can view the investment performance of every active and closed recommendation. It’s also possible to add positions to a personal watchlist to monitor its performance since it’s on your list.
- Stock Screener: Quickly find open positions meeting your personalized search criteria.
I find this stock-picking service easier to start investing with than many others. It has many open investment ideas with a “buy” rating within its model portfolio. Specifically, this platform doesn’t emphasize buying shares at or below a particular price point; it emphasizes long-term share price appreciation above short-term volatility.
You don’t have to buy every new recommendation or starter stock, but the service recommends holding at least 25 stocks and owning them for at least three to five years to be more likely to be a successful investor.
Stock Advisor is also reasonably priced at $99 for the first year (then $199/year) – similar to other “entry-level services.”
*$99 is an introductory price for new members only. 50% discount based on current list price of Stock Advisor of $199/year. Membership will renew annually at the then-current list price.
Two Monthly Stock Picks
Motley Fool Stock Advisor members get two new stock picks each month, while most stock services only have one monthly recommendation. This additional research provides more opportunities to learn about companies that will hopefully outperform the market over the next few years.
One monthly pick models a more conservative investment style, and the other adopts a more aggressive approach. Each pick is usually for a growth stock with risk tolerance flexibility. If you are a dividend investor, you may find that the picks are somewhat lacking for your investment style.
If it’s still a good buy, Motley Fool may re-recommend a previous business instead of adding a new stock ticker to the model portfolio. Sometimes, buying more of what you already own is the best option.
Each monthly pick gives you a detailed analysis covering these topics:
- What it does: Brief overview of crucial stock facts and business details
- Why buy now: The main reasons why this stock is worth buying today
- Potential risks: Reasons why you may avoid this stock or when you might sell
It only takes a few minutes to read the pros and cons of each stock pick. The monthly reports may also include a video presentation or roundtable discussion with the Stock Advisor analyst team where members can ask real-time questions. You should still perform your due diligence to decide if this pick fits your investment strategy.
Best Buys Now
As some of Stock Advisor’s earliest picks are still active, it can be hard to decide what to invest in. Motley Fool updates the “Best Buys Now” list monthly and also provides the ability to filter ideas by cautious, moderate, and aggressive investment styles.
This list is the best recommendations to consider buying now as they can be highly undervalued to their estimated intrinsic value. The newest monthly picks are usually on this list, yet some are several years old.
I like this feature because it’s easier to find stocks with the best entry points, especially if you missed the initial recommendation and have been waiting patiently. Most investment newsletters don’t offer similar updates unless they increase their buy-up-to price. You also avoid chasing investing trends, which can hamper your long-term returns.
Starter Stocks
Stock Advisor publishes a “Starter Stocks” list each year containing ten stocks. This list is for new investors who still need to purchase their first stock, but it can benefit any investor with minimal experience buying individual positions.
Most of these stocks are well-known, and you might use their services daily. They can be less volatile than the monthly stock picks, with plenty of long-term growth potential.
The Stock Advisor team recommends buying at least three starter stocks to pour your investment portfolio foundation. Your other buys can come from the “Best Buys Now” or new monthly recommendations as you identify excellent opportunities.
Sign up for the Motley Fool Stock Advisor
Stock Screener
The stock screener tool lets you filter stock picks by company size, industry, and risk tolerance to help personalize your portfolio. This is an easier way to look through open Stock Advisor recommendations.
You can answer a handful of questions to highlight stocks and even a select number of stock and fixed-income ETFs matching your personalized goals. These insights help you build a diversified portfolio.
More investment ideas populate your screens if you subscribe to several premium services from The Motley Fool. It won’t screen stocks outside of the paid portfolios.
Research Tools
In addition to the buy recommendation research report for monthly stock picks, there are a few extra stock analysis tools available:
- Fool IQ: Research any company in depth and enjoy additional analytics for Stock Advisor recommendations.
- GamePlan: Exclusive retirement and financial planning content to personalize your long-term financial goals.
These tools allow you to perform more in-depth research within the platform. This is handy if your brokerage has minimal tools or you don’t want to spend more money on other stock research websites.
Performance Tracking
Similar to your online broker, you can build a stock watchlist in Stock Advisor. You can “favorite” stocks you want to buy or track.
If you buy shares, it’s easy to track your investments within the platform to calculate your personal returns. Simply enter the purchase price, number of shares, and acquisition date.
The watchlist tracks the stock’s performance from when it joins the list. This tool also compares its return to the S&P 500. Your entry price can differ from the Stock Advisor’s original recommendation price. Adding stocks you own to the list makes it easy to see whether or not you outperform the broad market.
Another advantage of tracking stocks is that the Motley Fool sends you notices when it writes content about a stock or when earnings call transcripts become available.
Motley Fool Stock Advisor Investment Performance
Since launching in February 2002, the Motley Fool Stock Advisor service has a total portfolio return of 755% versus 162% for the S&P 500 (through July 3, 2024).
This is one of the most transparent services regarding model portfolio performance, as you can see the performance for each recommendation date. You can also compare it to the stock market over the same period.
Some of Motley Fool Stock Advisor’s successful picks include:
- Amazon
- Shopify
- Zoom Video Communications
- PayPal
- Costco
- Nvidia
- The Trading Desk
Stock Advisor first recommended Amazon, PayPal, and Costco in 2002 and has held them since.
Like any service, not every Stock Advisor pick is successful. Some companies don’t live up to expectations, but that’s the nature of investing.
As Stock Advisor publishes new picks twice monthly, there is no need to buy everything it recommends. You can be patient and buy positions that fit your investment strategy well.
Motley Fool Investing Strategy
To better understand how Stock Advisor works, it’s worth familiarizing yourself with The Motley Fool’s investing premise. Brothers David and Tom Gardner co-founded it in 1993. One of their beliefs is “investing in great businesses for the long term.”
Some of the practices include:
- Buying at least 25 Motley Fool recommendations
- Holding for at least three years
- No individual position exceeds a 5% portfolio allocation
- Regularly invest new cash
Long-time investors are pretty familiar with Motley Fool investment research and that can outperform the average stock market return. Instead of trying to time the market, you find great companies with upside potential and be patient through bullish and bearish periods.
Stock Advisor follows a “buy and hold strategy” with a minimum investment period of three to five years – unless the investment thesis changes. Owning a stock through dips and surges for multiple years is one way that Stock Advisor outperforms the S&P 500 long-term.
Most services recommend using stop losses, such as selling your position if it drops 25%. Stop losses help you manage your downside risk but encourage focusing on short-term results.
It can be tough not to panic sell, and sometimes Stock Advisor holds onto stocks for too long. Stock Advisor isn’t perfect, but its 22-year performance is better than that of most active investors.
Picking stocks gets a bad name when you don’t keep a balanced portfolio. previous recommendations and investing articles for that stock.
Sign up for the Motley Fool Stock Advisor
The Motley Fool Community is another section you might enjoy. This message board is like Reddit but only for Motley Fool members, including Stock Advisor.
You will see discussion boards for various investing topics, including how to start investing. Other boards focus on active Stock Advisor recommendations. Some members also share their investment portfolios to help give you investing ideas.
Like the official Motley Fool Stock Advisor picks, use your personal diligence to research and investing guidance you see in the community discussions.
How Much Does Stock Advisor Cost?
Motley Fool Stock Advisor is offering a special discount on the first year so it costs just $99 – there’s a 30-day membership-fee back guarantee so you can see whether or not it’s a fit for you.
After your first year, your Stock Advisor membership renews at the standard rate. Currently, that’s $199 per year. But the Motley Fool may send you a $50 discount if you renew early – check your email a month before your renewal date.
The annual fee is competitive with most entry-level services. This subscription cost is low, so you have more cash to invest in different Stock Advisor stock picks.
Sign up for the Motley Fool Stock Advisor
*$99 is an introductory price for new members only. 50% discount based on current list price of Stock Advisor of $199/year. Membership will renew annually at the then-current list price.
Motley Fool Stock Advisor vs Alternatives
The Motley Fool is essentially a tool for stock recommendations. However, there are many alternatives to the Motley Fool because many people recommend stocks and give deep-dive analyses of their recommendations.
Morningstar Investor
Morningstar is one of the most respected sources of investment information and is frequently quoted by the financial media. It is the closest competitor to The Motley Fool, thanks to its mix of free content and premium stock-picking services. Its star rating system for stocks and funds is widely recognized.
To get the most from Morningstar, including access to analyst reports and watch lists, you must sign up for the company’s premium plan, Morningstar Investor. It costs $34.95 per month but is heavily discounted if you pay for a full year upfront.
Here’s our full Morningstar Investor Review.
Seeking Alpha
Seeking Alpha is yet another service similar to Morningstar and The Motley Fool – they offer a Premium and Pro plan that offers stock tips, tools, and ratings. Seeking Alpha has a vast catalog of free content for basic analysis, but it has low monthly limits. If you do get Premium or Pro, you get a lot more analysis as well as Editor’s Picks.
Alpha Picks by Seeking Alpha provides a model portfolio through two monthly recommendations, similar to Motley Fool Stock Advisor. This service costs $499 annually and uses the Seeking Alpha Quant Ratings for a buy-and-hold strategy from several months to over one year.
Here’s our full review of Seeking Alpha.
Stock Rover
Stock Rover is an impressive stock screener for filtering stocks, ETFs, and funds for specific fundamental metrics that long-term investors crave. Unlike Stock Advisor, this service doesn’t provide monthly stock picks, although it provides model ETF portfolios and the latitude of research nearly any publicly-traded security.
A free plan offers limited research capabilities. The three paid tiers provide over 700 stock metrics, stock ratings, and portfolio management tools. Self-directed investors benefit the most from this service, although it can also be an excellent research companion to The Motley Fool.
Here’s our full Stock Rover review.
FAQs
Motley Fool Stock Advisor is an excellent option for many long-term investors. You get investing ideas for stocks from a variety of industries. It’s one of the most affordable ways to receive two monthly stock picks with responsible risk management.
Stock Advisor isn’t a good option for short-term traders who rely on technical data and only plan to hold positions for days or months instead of several years. Additionally, investors who want to invest in Dividend Aristocrats may find Stock Advisor too aggressive. It’s better suited to those planning to buy growth stocks without dividends.
Subscribers receive two picks each month. One comes from “Team Everlasting,” which is more conservative and emphasizes high-quality companies with sustainable growth potential. The second monthly pick is from “Team Rule Breakers” which looks for emerging companies with good management teams and strong consumer appeal. Other factors apply to each pick.
You will receive an alert when an investment idea downgrades to a hold or sell rating. The notification commentary includes reasons for the sentiment change to assist with adjusting your portfolio allocation and investment strategy.
Summary
Motley Fool Stock Advisor is one of the best investment tools for buying individual stocks as it provides many investment ideas. The annual cost is low enough that you can afford to purchase several positions per year in well-run companies. Don’t forget to continue investing in your index or target retirement funds to maintain a diversified and balanced portfolio.