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So, is Motley Fool legitimate?
Can you really trust Motley Fool for its stock advice and recommendation?
If you are thinking about joining one of Motley Fool’s stock picking services, this is definitely one of the questions you want answers to.
First of all, what is considered legit?
To me, it must at least fulfill the following criteria:
- A well-established company, preferably with a global reach
- It has been around for a long time (i.e. the longer, the better)
- It has physical offices
- It has phone numbers that you can easily call
- It’s been featured in all the major news and publication
- It provides high-quality products and services that help their customers get real results
- The founders are reputable
- A lot of positive reviews from its customers about its products and services
- No lawsuits from its customers in the past
Now, let’s take a closer look at Motley Fool and see how it measures up to the above-mentioned criteria.
Motley Fool History
The Motley Fool is a financial and investing advice company that has been around for almost 30 years.
As of 2019, The Motley Fool also has operations in the US, United Kingdom, Australia, Canada, Germany, Hong Kong, and Japan with a total number of 300 employees.
It was founded by David and Tom Gardner in 1993.
The company was founded with the purpose to make the world smarter, happier, and richer by helping millions of people attain financial freedom through its website, podcasts, books, newspaper columns, radio shows, and premium investing services.
So, who is David Gardner and Tom Gardner?
They both began investing at a very young age, and have more than 30 years of investment experience and are best-selling authors of a few investment books.
David Gardner also makes frequent appearances on CNBC to share his views on the stock market.
Here are just a few of Motley Fool’s media mentions.
Motley Fool is generally regarded as one of the leading financial websites for stock research and analysis.
Motley Fool Physical Address & Contact Number
So, where is Motley Fool’s office located?
The Motley Fool headquarters is located at 2000 Duke St, Alexandria, US.
It also has offices in the United Kingdom, Australia, Canada, Germany, Hong Kong and Japan.
And how do you contact Motley Fool’s customer service?
To contact member’s customer support, you can send an email to email@example.com, or fill out an online ‘Contact Customer Service’ form.
Alternatively, you can also give them a call Monday through Friday, 9:30AM – 4:00PM EST.
- To purchase a premium subscription, you can call +1 (855) 692-3665
- To discontinue your premium subscription, you can call +1 (844) 408-4263
- For assistance with your premium subscription, you can call +1 (844) 408-4263
- If the matter of your request is not listed above, you can call their main number at 888-665-3665
Motley Fool Investing Philosophy
So, when it comes to investing, what does Motley Fool believe?
It believes in the following:
- Treating every dollar as an investment in the future you want to create
- Investing in great businesses, for the long term, is the most effective path to wealth
- Keeping score and being transparent in our investment performance
- The power of a community to learn and grow together
Personally, I am a great fan of Warren Buffet & Peter Lynch.
Both are considered legends in the investing world.
And both of them also believe in investing in great businesses in the long term and actually amassed a fortune doing so.
Did you know that Warren Buffet bought more than $1 billion of Coca-Cola shares in 1988 right after the stock market crash, making it the largest position in his investment portfolio at the time?
And did you know that he has never sold a single share ever since?
Today, Coca-Cola is still the third-largest shareholding in his portfolio?
Here are the investment results.
There is an unrealized gain of more than $20 billion on the investment.
Since 1995, it has earned about $7 billion in dividends from the Coke investment.
This is the perfect example of why smart investors invest in great businesses in the long term.
So, I really like Motley Fool’s investing approach because it is also what I firmly believe in.
Motley Fool Subscription Services
Motley Fool offers a wide range of premium investment services, with Stock Advisor and Rule Breakers being the most popular subscription services of all.
Stock Picking Services
Motley Fool Stock Advisor and Rule Breakers are both stock picking services.
So, what is Stock Advisor and Rule Breakers?
Are their stock picks good?
Are Motley Fool subscriptions worth it?
Okay, let’s check the facts and numbers because I only trust facts and numbers.
Motley Fool Stock Advisor is led by David Gardner and Tom Gardner, founders of Motley Fool.
First of all, let’s take a look at their track record as of May 18, 2020.
Below is the performance comparison between Motley Fool Stock Advisor and S&P 500 between 2002 and Mar, 2020.
If you had invested $10,000 in the stocks recommended by Motley Fool Stock Advisor, your investment portfolio would be worth about $160,000.
On the other hand, if you had invested $10,000 in S&P 500 index funds, your portfolio would be worth $30,000
That’s a HUGE difference in returns.
Now with the coronavirus crisis going on, how have their stock picks been performing?
As of May 2020, average Motley Fool Stock Advisor recommendations have returned over 399.5%, with over 100 stock recommendations with 100%+ returns.
Here are just some of their best-performing stock picks:
- Shopify: it is up 389%
- Amazon: it’s up 15,295%
- Netflix: it’s up 18,410%
- Zoom: it’s up 95%
- Okta: it’s up 421%
Just imagine that you actually found out about these great stocks way before everyone else did.
What would your investment portfolio be like today?
So, Stock Advisor will always be right about their stock recommendations?
No, because no one can be right about their stock picks 100% of the time.
Even Warren Buffet has losing stocks in his portfolio, but he still achieves above-average returns.
That’s because a few big gainers in the portfolio can make up for the underperformers.
What I like about Motley Fool is that they are very open and transparent about their bad investments.
Let me sidetrack a bit here.
If any stock advisor 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.
Is it worth joining Motley Fool Stock Advisor?
Check out my detailed review of Stock Advisor Now
Motley Fool Rule Breakers
It was started in 2004 by David Gardner to help people find market-beating growth stocks.
The Rule Breakers investment strategy is focused on uncovering the hidden gems in the stock market.
So, it’s not the mainstream stocks (i.e. IMB and Apple) that everyone is following, but little known stocks that have great potential to be the market leader in the future.
Think “Amazon” and “Neflix” that was recommended by Motley Fool many years ago.
By the way, here are the returns that you would have gotten if you bought the stocks based on their recommendations:
- Amazon: it’s up 15,295%
- Netflix: it’s up 18,410%
Here are more examples of great growth stocks that were picked by David and his investment team.
Being growth stocks, it could bring a lot of volatility to your investment portfolio.
That’s why you should always allocate a relatively smaller percentage of your portfolio to growth stocks that you believe in.
Motley Fool Rule Breakers is strictly for investors who have moderate-to-high risk tolerance and are looking for growth stocks that can potentially bring massive returns over time.
Is it worth getting Rule Breakers?
Check out my detailed review of Motley Fool Rule Breakers Now
Apart from stock picking services, Motley fool also provides other services such as retirement planning, portfolio services, thematic investment advice, specialty services.
Here, I am just going to give you a few notable examples of these services.
Rule Your Retirement
This service helps you plan your retirement and manage your retirement investments by offering the following:
- Three sets of model portfolios to help you create the best mix of investments using their allocation and rebalancing guidance
- Mutual fund and Exchange-Traded-Fund (ETF) recommendations
- Social security tips, tricks, and strategies (i.e. learn how to get the most from Social Security and maximize your benefits)
- Coverage and analysis on critical retirement topics such as estate planning, insurance and etc.
Supernova is a collection of real money model portfolios where a team of analysts invests The Motley Fool’s own money in growth stocks recommended by Motley Fool co-founder David Gardner.
Supernova is for investors who want an aggressive growth stock portfolio, can tolerate the higher than average levels of volatility, and investing risk associated with this type of strategy, want to follow alongside a model portfolio while executing trades themselves, and that have a portfolio of at least $90,000.
Everlasting Portfolio is a model portfolio service that gives you quarterly buy and sell guidance based on what Motley Fool CEO Tom Gardner is doing in his personal portfolio.
Personally, I recommend that you check out both Stock Advisors and Rule Breakers because these two, in my opinion, are more worth it in terms of impressive investment performance and its value for money.
Motley Fool Podcast
Motley Fool has a few popular Podcasts:
- Motley Fool Money
- Rule Breakers Investing
- Industry Focus
- Motley Fool Answers
- Motley Foolery
I recommend that you check out David Gardner’s Rule Breakers Investing Podcast and hear the Motley Fool CEO himself share with you his investment insight and analysis.
It’s one thing reading about his story and his investment ideas.
And it’s another thing actually listening to him talking about it.