Motley Fool Review

The Motley Fool Stock Advisor Service Test. Full Stock Picking Analysis, Audit & Service Ratings. Are Motley Fool's Stock Picks Worth It?

This Motley Fool Stock Advisor review performs an in-depth test of their stock-picking performance and reveals the facts about their service. You will discover the real pros and cons of the Motley Fool service and whether it is worth your investment.

I have been monitoring Motley Fool for 20 years and I have seen their ups and downs. Over the last two years, I downloaded their database of stock picks and analyzed them independently with my favorite stock screener Stock Rover. The results are unbelievable.

Motley Fool Stock Advisor Review, Test & Audit
Motley Fool Stock Advisor Review, Test & Audit

Motley Fool Stock Advisor Ratings

Motley Fool Rating 4.6/5.0
💸 Pricing & Software ★★★★★
🚦 Stock Picking ★★★★★
📡 Screening ★★★✩✩
📰 News & Social ★★★★★
📈 Charts ★★★✩✩
🔍 Stock Analysis ★★★★★
🖱 Usability ★★★★★

Motley Fool Stock Advisor Review Summary

After 2 years of independent research and testing this Motley Fool Stock Advisor review confirms their excellent performance track record of beating the market. The service provides incredible value for long-term growth investors.

Since the Motley Fool team reorganized their approach to stock investing advice in 2002, they claim an excellent record of beating the market with their Stock Advisor service.

This independent Motley Fool review tests and verifies that Motley Fool Stock Advisor outperforms the S&P 500, they are a mature stock advisory service with a proven track record.

I independently subscribe to, and pay for the Motley Fool Stock Advisor service out of my own pocket, because it is really that good.

Motley Fool Stock Advisor Features

⚡ Features Stock Selection, Live Webinars
🏆 Unique Features Proven Winning Track Record
🎯 Best for Stock Investors
♲ Subscription Monthly, Yearly
💰 Price $199-$299/mo
💻 OS Web Browser
🎮 Trial 30 Day
✂ Discount 50% Discount $99
🌎 Region Global
We independently research and recommend the best products. We also work with partners to negotiate discounts for you and may earn a small fee through our links.
Motley Fool Stock Advisor - Review Winner - Best Stock Advisory Service
Motley Fool Stock Advisor – Review Winner – Best Stock Advisory Service

Pros

  • Proven to beat the market consistently over 20 years
  • Ability to build watchlist & entire portfolios
  • Very Cost-effective service
  • Fully transparent auditing of stock picking performance
  • A straightforward and intuitive website
  • A passionate and loyal community of 700,000 people

Cons

  • Stock Screener is basic.
  • It can be tricky to find the original research reports.

What is the Motley Fool?

Motley Fool is a privately held company owned by the brothers, Tom and David. For over 20 years, the Gardners have been providing sensible investing advice, both popularising investing in index funds and high growth stocks.  Motley Fool became a household name with the publication of “Motley Fool Investment Guide” in 1997. This book inspired me to start investing.

Motley Fool Stock Advisor Test

Motley Fool offers 32 different premium services, from the most popular Stock Advisor and Rule Breakers to advice on real estate investing. The only services that they share the market-beating performance on are Stock Advisor and Rule Breakers.

The Motley Fool premium stock research reports are clear and precise, focusing on the company’s financials, but most importantly on the future of the industry and business outlook. This is important because if you want to have market-beating results, you need to select companies that are potential industry disruptors and market dominators.

I have been a subscriber to Motley Fool Premium for four years, primarily because I value the qualitative analysis they provide. My initial reason for subscribing to the service was to test if they were legitimate or really a scam. I was amazed at how simple and successful their service is.

Not only am I a paying subscriber, but I have also recently partnered with Motley Fool because I can wholeheartedly recommend their service.

Is The Motley Fool Legit?

Yes, The Motley Fool LLC is a legitimate business providing stock advice and educating investors since 1993. Employing over 300 people and headquartered in Virginia, the Motley Fool has never been involved in any complaints or litigation with the SEC.

Also, Motley Fool has on 4 occasions testified in Congress to support individual investors’ rights.

Is Motley Fool Reliable?

Yes, the Motley Fool is a reliable service. Like any stock advisory service, it has made a few mistakes in its 27 years of operation. The Foolish Four recommendations in the early 2000s nearly bankrupted the company. More recently, their recommendation to buy Luckin Coffee backfired for investors, as the Chinese stock plummeted 90% on news of fraud.

“The Motley Fool deserves a great deal of credit for openly supplying a vast amount of information on a timely basis. While many investment industry participants offer model portfolios or other forms of advice, few actually maintain real-money accounts in public view (in effect, putting their money where their mouths are).” Source: Journal of Business & Economics Research

Motley Fools Claimed Performance Track Record

Motley Fool does not try to perform research on every stock and fund in the USA.  The team focuses on specific stocks that they feel will, over the long-term, significantly beat the S&P 500.  They then provide lightweight and easy-to-read research reports and recommend why they feel the stock will be a long-term superior investment.

Motley Stool Stock Advisor Review: Performance Research
Motley Stool Stock Advisor Review: Performance Research

Motley Fool Stock Advisor Portfolio Performance 2002 to 2020

Motley Fool Stock Advisor S&P 500
421% 85%

 

The team at Motley Fool claims outstanding market-beating performance.  But is this true? In the next section, I perform some independent analysis to verify the facts.

Does Motley Fool Really Beat the Market?

Yes, the Motley Fool Stock Advisor service is currently beating the market. Since its inception in 2002, Stock Advisor has returned 612% vs. the S&P 500 return of 120%, according to its detailed auditing. In real terms, the S&P 500 averaged 6.13% per year, and the Stock Advisor service averaged a 32.2% gain.

As a Motley Fool premium member, I can access all of the open and closed trades audited since 2002. In the next section, I will share my own research on the performance.

Motley Fool Stock Advisor Test Results Summary
Motley Fool Stock Advisor Test Results Summary

Motley Fool Stock Advisor 2-Year Test

My independent analysis of the stock advisor service’s audited results reveals that since 2002, 48% of the stocks beat the S&P 500. The average winning stock outperformed the S&P 500 by 780%. 28% of the stocks recommended made a loss of 42% on average, while 82% of the stocks made a profit averaging 640%.

What does this mean? It means that you still have a 28% chance of losing money on any single stock recommendation. But at current performance levels, you have a 72% chance of investing in a company that will make you a profit.

Motley Fool Stock Advisor Performance

I independently verified the Motley Fool Stock Advisor service’s exceptional performance, recommending 310 stocks of which 48% outperformed the S&P 500 with an average return of 680%. The average loss was 48%

  • They recommended 310 individual stock picks to investors.
  • 72% of the stocks made a profit but did not beat the market.
  • 48% of the recommendations beat the market.
  • The average winning stock beat the market by 780%.
  • The average profit of each profitable stock was 680%.
  • The average loss was -42%
  • The best recommendation was Netflix in 2004, which made a 29,990% profit.

Motley Fool Stock Advisor Independent Performance Test

In January 2020, I downloaded the full list of Motley Fools Stock Advisor recommendations. I have independently analyzed the stock picks in Stock Rover, and I can confirm that last year the Motley Fool Stock Advisor service made a profit of +52.7% vs. the S&P 500 return of +18.4%. Motley Fool beat the S&P 500 by 34.3% for 1-year to January 1, 2021.

Motley Fool Review: How I Tested the January 2020 Stock Advisor Recommendations - 1 Year Performance Independently Verified.
Motley Fool Review: How I Tested the January 2020 Stock Advisor Recommendations – 1 Year Performance Independently Verified.

For the full year 2020, Motley Fool Stock Advisor picked a total of 97 stocks. 62 stocks beat the S&P 500 by an average of 83%. 35 stocks did not beat the market, losing by an average of 20% against the S&P 500. As you can see in the screenshot above, the average return vs. the S&P 500 was 46.3% across all stocks. This is really an impressive result.

Motley Fool Features Test

When signing up to Motley Fool, you get more than simply a list of stocks to buy. You get support, encouragement, and regular emails with suggestions on how to structure your portfolio. They also provide you with sound advice on investing and what to expect from the market.

Buy 15 Stocks

The service recommends you buy at least 15 stocks and hold those stocks for 3 to 5 years.  This is wise advice because, as we know, the stock market goes down as well as up, and according to our research, you can expect that 30% of their stock recommendations will not be big winners.  Buying a larger basket of stocks helps diversify your portfolio and reduces the risk of being over-exposed to a single company. Additionally, holding stocks for longer allows stocks the time they need to develop outsized profits.

Help Building Your First Portfolio

The service helps you build out your first portfolio by suggesting 10 starter stocks to buy to start your portfolio. This is a great help to any new investor or for anyone looking to refresh their investing performance.

Portfolio Allocator Tool

The Portfolio Allocator tool is powerful yet simple to use; it will help you build a portfolio based on your risk profile and investing timeframe. From the Tools menu, select Allocator to be presented with a list of potential portfolio structures. You can select your Risk/Reward and Time to Invest preferences, and they will recommend a portfolio that might meet your needs. See the Screenshot Below.

Motley Fool Review: Portfolio Allocator Tool Helps You Select Your Risk Profile & Investing Timeline.
Motley Fool Review: Portfolio Allocator Tool Helps You Select Your Risk Profile & Investing Timeline.

Your Model Portfolio With Stock Recommendations

When you open your recommended portfolio, you are presented with a Pie that suggests your investment allocation between stocks, ETFs, Bonds, and Real-estate. You can then drill down to see the specific stocks they advise you to buy.

This is a great tool if you need this structured approach to building a well-rounded, diversified portfolio.

Motley Fool Premium Helps You Structure Your Portfolio - Click on Any Part of the Pie to See Which Stocks to Buy.
Motley Fool Premium Helps You Structure Your Portfolio – Click on Any Part of the Pie to See Which Stocks to Buy.

The Motley Fool Screener Tool

I prefer to get my stock selections using the Fool Premium Stock Screener. Simply click on Tools -> Screener, then select High Only to get a list of their High Conviction Stock Picks. These are the stocks they rate the best of the best for potential future growth.

Motley Fool Premium Stock Screener Test: Select - Tools - Screener - High Conviction To Get The Best Stocks.
Motley Fool Premium Stock Screener Test: Select – Tools – Screener – High Conviction To Get The Best Stocks. (Stock Selection Obscured Because of TMF Intellectual Property)

You can then click each stock to get a full research report on the company, so you can understand why Tom or David Gardner have selected them.  What is also great is you see the entire audit of when the stock was first recommended and every time they have re-iterated their Buy recommendation.

This stock screener does not screen the entire stock market; it is limited to the stocks that the Motley Fool team has recommended, meaning you will have a total universe of about 900 stocks.

Motley Fool Premium Discount Pricing

Motley Fool offers 32 different services ranging in price from $199 per year for Stock Advisor to $13,999 per year for ONE Access to all their services. For stocks, I would recommend the Stock Advisor at $199 or the Rule Breakers at $299 per year. I pay for the Stock Advisor Service, and I am delighted with it.

You might think $199 per year is expensive. But for the chance to select high-performing stocks and beat the market, this service is an absolute bargain, which I am happy to pay for.

New Motley Fool Premium Client Discount

Luckily, through my new partnership with Motley Fool, all visitors to LiberatedStockTrader.com can get 50% off their first year of Stock Advisor or a 66% discount on Rule Breakers.

Stock Advisor Rule Breakers
Two New Stocks Per Month Two New Stocks Per Month
10 Best Stocks to Buy Now 5 Best Stocks to Buy Now
List of Starter Stocks List of Starter Stocks
Community Access Community Access
Regular Exclusive Videos & Podcasts Regular Exclusive Videos & Podcasts
$199 or $99 For New Clients $299 or $99 For New Clients

Table: Motley Fool Stock Advisor vs. Rule Breakers

As you can see, the only real difference is in the Best Stocks to Buy Now, where the list of 5 best stocks is smaller companies with considerable potential. However, the service with the best, proven track record is the Motley Fool Stock Advisor.

Is Motley Fool Stock Advisor Worth It?

Yes, the Motley Fool is worth the cost, as it improves your chances of investing in profitable stocks. In 2020 only 13% or 815 US stocks performed better than the S&P 500. Meaning you have only a 13% chance of picking an outstanding stock. Motley Fool Stock Advisor helps increase your chance of beating the market, as 48% of their recommendations out-perform the S&P 500.*

*According to my research using StockRover, out of 7,500 US stocks, only 851 companies with a market capitalization greater than $1 billion beat the S&P 500 index in 2020.

How Do I Use Stock Advisor?

For 20 years, I have preferred to perform my own stock research, but having used Motley Fool’s Stock Advisor for 4 years, I have found that it saves me a lot of time and provides me with unique insights and ideas.

I typically review the High Conviction recommendations from Motley Fool, and then I add them into Stock Rover. Stock Rover enables me to perform my own in-depth analysis of the financials, analyst ratings, future revenues, and earnings. It also allows me to connect to my Broker, access their research reports, rebalance my portfolio, and screen the entire market for stocks. I have even developed my own Beat the Market Growth Stocks Strategy that is now available for all Stock Rover customers.

Motley Fools Stock Advisor Video

Motley Fool Review Summary

For many years I was skeptical about the Motley Fool Stock Advisor service, but having been a subscriber for 4 years, I can recommend it for the following reasons. Their stock picking is excellent, with a proven track record of significantly beating the market, and they support you with continual updates and new stock alerts. Motley Fool is a great place to start if you want to be one of the 10% of people who beat the market.

Motley Fool Stock Advisor Benefits

Company Motley Fool
Product Name Stock Advisor
Research Reports Stocks
Real-Time Research Reports
Analyst Research Reports
Fund Research Reports
Long-Term Investing
Stock Ratings
Portfolio Mgt Tools
Short-Term Trading
Buy Signals
Price Per Year $199 $99
Visit 50% Off Motley Fool

 

Further Reading

Related Articles: Finding Great Stocks With Stock Rover


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My favorite software for stock market news is Benzinga Pro, with its super-fast real-time news engine, squawk box, and news impact ratings.

My favorite AI trading software is TrendSpider which enables automatic pattern recognition for Trendlines, Candlesticks, and Fibonacci levels. Trade Ideas uses AI to generate high probability daily trading signals for auto-trading.

My favorite stock-picking service is Motley Fool Stock Advisor, which has a proven track record of beating the market with excellent stock research reports.

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After 2 years of independent research and testing this Motley Fool Stock Advisor review confirms their excellent performance track record of beating the market. The service provides incredible value for long-term growth investors.

Product SKU: NA

Product Brand: Motley Fool

Product Currency: USD

Product Price: 99

Price Valid Until: 2025-02-03

Product In-Stock: InStock

Editor's Rating:
4.6

2 COMMENTS

  1. Where can I find all the stocks recommended by Motley from 2002. Under fool.com I don’t see PERFORMANCE tab anymore.

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