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Is Behind The Market any good?
Who is Dylan Jovine, the man writing the Behind The Market newsletter? Is he legit?
What is his stock-picking strategy?
How have Behind The Market’s stock recommendations performed so far?
Are there any better alternatives?
Who is Dylan Jovine?
Dylan Jovine start his career managing accounts on Wall Street in 1991.
6 years later in 1996, he started his own brokerage firm called Lexington Capital Partners in New York City.
In 2000, he sold his stake in Lexington Capital Partners to Silver Lake Capital.
Years later, Dylan Jovine started Tycoon Publishing to offer independent investment research and education to over 500,000 individual investors at its peak.
At that time, he also contributed to the free investment letter, The Tycoon Report.
In 2011, he sold Tycoon Publishing to the largest independent financial newsletter publisher, Agora, Inc.
7 years later in 2018, he founded Behind the Markets, an investment research company where it publishes investment newsletters and courses for individual investors.
Below is a list of products sold by Dylan Jovine:
- Behind the Market: $39/year
- Biotech Insider: $1,497/year
- Takeover Targets: $1,497/year
- Breakthrough Wealth: $1,497/year
- Hidden Market Profits: $1,497/year
Behind the Market is the low-priced entry product to get as many people as possible into his sales funnel, so they could upsell other high-priced products later on.
Behind The Market: Dylan Jovine’s Stock-Picking Strategy
On the website, it says that Behind The Market is an investment newsletter that provides research on companies whose stocks are selling at a discount to their estimated fair value.
It’s mentioned that he focuses primarily on mid-cap companies with a market capitalization ranging from $1 billion to $10 billion.
He looks for companies with a high return on equity, low debt, and most importantly a durable competitive advantage.
Also, he likes to buy good companies that suffered a temporary setback.
After going through Dylan Jovine’s stock picks as well as his analysis, here’s what I found.
He likes to follow gurus such as Warren Buffet and billionaires such as Paul Tudor Jones and Jim Simons, and then recommends stocks that they just bought.
For example, after it was revealed in the F13 that Warren Buffet bought Paramount and Occidental Petroleum, Dylan Jovine also recommended these stocks.
Recently in September 2023, he recommended a stock that billionaire Leon Cooperman just bought.
His analysis mainly consisted of the CEO’s quote, a summary of quarterly results, and the company’s forward guidance.
For a company that is not profitable yet and posting very modest growth (about 10%), I still don’t understand why it’s a compelling buy after reading his analysis.
My takeaway is that the main reason that he is recommending is that Goldman Sachs is a big shareholder and has a buy rating on this stock and billionaire Leon Cooperman just bought it.
At the end of his analysis, he includes a standardized report on the stock with charts and financial numbers. I believe that this research report is generated from a third-party service provider.
Personally, I don’t see his supposed strategy which is “buying companies whose stocks are selling at a discount to their estimated fair value” being applied in his stock selection.
Apart from this, I find it a bit surprising that he also recommends recently listed companies that are not yet making money and unprofitable biotech companies and AI companies.
All in all, I find he is not consistent in his investment approach.
Behind The Market: Stock Picks & Performance
So, how have Dylan Jovine’s Behind The Market stock recommendations performed so far?
Dylan Jovine started publishing Behind The Market in 2018.
His stock picks performed quite well from 2018 to 2021.
During the bull market, most people make money in the stock market as long as they have bought stocks.
It’s the bear market that really tells the good investors from the not-so-good ones.
Below is the performance of Dylan Jovine’s stock picks in 2022.
There are a few big losses with the maximum loss being about 90%.
The biggest gain is 77% because Dylan Jovine recommended his members to cost-average down two times.
This time, the cost averaging worked out pretty well.
But it didn’t work out so well for a few others.
Below is the performance of Dylan Jovine’s stock picks in 2023 so far.
The maximum gain is 58% while the maximum loss is -12%.
Year to date, the market has been staging a strong rally in the first half of 2023 with Nasdaq up almost 30% and S&P up almost 20%.
It remains to be seen how the stock picks will fare compared to the market for the rest of the year.
Behind The Market: Pricing
So, how much does “Behind The Market” cost?
What do you really get as a subscriber?
There are three different pricing plans:
- Bronze: $39
- Silver: $79
- Platinum: $99
All three pricing plans give you access to the following:
- Monthly research report
- Model portfolio and positions
- Trade Alerts
- Weekly updates (3 stocks Legends are buying, 3 stocks Wall Street are buying, and 3 Stocks Insiders are buying)
The only difference between these three plans is the number of free bonus reports you get.
The Platinum plan ($99/year) gives you the most number of free bonus reports.
For all three plans, it comes with a 30-day subscription-fee-back guarantee.
Alternatives To Behind The Market
If you are looking for good stock investment ideas, there are better stock research and analysis platforms that you can use to do that.
At the end of the day, it’s important for you to take control of the investment decisions, not blindly follow some so-called experts’ recommendations because no one cares more about your financial well-being than yourself.
Motley Fool Stock Advisor is focused on giving stock recommendations that are high-quality companies with long-term growth potential, which suits my investment philosophy.
The reason why I subscribe to Stock Advisor is to get stock ideas as it has a proven record of finding stocks with massive upside potential.
Personally, I don’t buy every single stock recommendation.
What I do is that if I find any interesting stock pick, I will do my own research again.
First of all, let’s take a look at their track record as of 8th June 2023.
Below is the performance comparison between Motley Fool Stock Advisor and S&P 500 between 2002 and 8th June 2023.
As of 8th June 2023, average Motley Fool Stock Advisor recommendations have returned over 459% since inception while the S&P 500 has returned 124%.
In short, the Motley Fool Stock Advisor has outperformed the market 3 to 1.
That’s a HUGE difference in returns.
But, what about its individual stock picks?
This metric is important because you might not be buying every single stock recommendation made by Stock Advisor.
Below is a table that shows you the performance of individual stock picks over the years.
As of 28th April 2023, Motley Fool Stock Advisor has had 178 stock recommendations with 100%+ returns.
Here are just some of their best-performing stock picks:
- Amazon: it’s up 19,806%*
- Netflix: it’s up 23,901%*
- Walt Disney: it’s up 632%*
- NVIDIA: it’s up 16,423%*
- Shopify: it is up 4,107%*
- United Health Group: it is up 2,338 %*
[*Returns as of 31st Dec 2021. Past performance is no guarantee of future results. Individual investment results may vary. All investing involves risk of loss.]
Will the Motley Fool Stock Advisor always be right about their stock recommendations?
No, because no one can be right about their stock picks 100% of the time.
Let me sidetrack a bit here.
If any stock picking service tells you that they have a close to 100% success rate on their stock picks and can guarantee you high investment returns, you should definitely stay away.
Even Warren Buffet has loss-making stocks in his portfolio, but he still achieves above-average returns because a few big gainers in the portfolio can make up for the under-performers.
What I like about the Motley Fool Stock Advisor is that they are very open and transparent about their bad investments.
As a member, I can see the performance of ALL its past and current stock recommendations (even for closed positions).
For some other stock-picking services that I’ve tried, they don’t publish the performance of all their past and current stock recommendations, so it’s not easy for you to find out their true track record.
For example, the year 2022 has not been good for high-growth stocks because of rising interest rates and high inflation.
So, you can see a lot of Motley Fool Stock Advisor’s stock recommendations are not doing very well.
The truth is that other stock-picking services are not doing well either because of the stock market crash.
Do I still think it’s worth subscribing to the Motley Fool Stock Advisor?
My answer is yes.
The stock market goes up and down all the time.
Every few years, there is a bear market.
According to Peter Lynch who is a legendary fund manager, far more money has been lost by investors trying to anticipate correction than lost in corrections themselves.
In fact, I think the bear market is the BEST time to start investing in the stock market.
During a bear market, it’s more likely to find great businesses selling at very cheap prices because people are just selling out of fear when the business is still fundamentally sound.
A market crash is a time when huge wealth transfers from irrational and emotional investors to patient and rational investors.
So, if you are thinking of getting into stock investing, I highly recommend the Motley Fool Stock Advisor because I think there are a lot of well-researched stock recommendations.
In terms of pricing, Motley Fool Stock Advisor is also affordable.
Usually, its annual subscription is $199.
Right now, there’s a special limited-time $79 offer* for new members for the first year when you click the link here to try it out for 30 days with a Membership-Fee-Back Guarantee. (*Billed annually. Introductory price for the first year for new members only. First-year bills at $79 and renews at $199)
So, for $79 a year- that’s just $1.52 a week – you can gain unlimited access to their library of expert stock recommendations which are carefully selected to help you grow your wealth.