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So, what is Motley Fool Ultimate Buy Alert?
Is it just click bait marketing or is it something worth paying attention to?
What Is Motley Fool Ultimate Buy Alert?
When Motley Fool issues an “Ultimate Buy Alert” or “Triple Buy Alert”, it simply means that there is very strong conviction that the stock they are recommending is going to be next “Amazon” or “Netflix”.
So, how do they decide which stock gets the “Ultimate Buy Alert”?
First of all, let’s understand who is making the stock recommendations at Motley Fool.
If you are not familiar with Motley Fool, it is a financial and investing advice company that has been around for almost 30 years.
It is run by David Gardner and Tom Gardner, founders of Motley Fool.
Now, let’s move on to talk about how they decide on the “Ultimate Buy” Alert.
Both Tom Gardner and David Gardner work independently and come up with their own stock recommendations every month for their most popular Stock Advisor newsletter.
As they use very different investment methodology to pick stocks, they would, most of the time, give different stock picks.
Tom Gardner adopts a value investing approach, while David Gardner looks for companies that have huge growth potential and are going to the market leader in the next 10 years.
But, there are times when both Tom Gardner and David Gardner would recommend the same stock.
So, how often does that happen?
It has only happened 27 times since the inception of Motley Fool Stock Advisor in 2002.
When this happens, it’s an Ultimate Buy Alerts.
So, what the results of these “Ultimate Buy Alerts” have been?
Have they really achieved market beating returns for Motley Fool Subscribers?
Let’s find out.
Motley Fool Ultimate Buy Alerts Past Performance
For all the 27 stocks both David and Tom have recommended, the average return is an astounding 1,352%, beating the S&P 500 by more than 12 times!
Now, let’s go through some of the “Ultimate Buy Alerts” stocks.
In June 2007, Tom recommended to buy Netflix at $2.79, almost 10 months after David recommended Netflix.
Netflix is up 19,368% since Tom agreed with David on it in June 2007.
By the way, both Tom and David believe in holding good companies for the long term.
That’s why they recommended Stock Advisor subscribers to hold it even until now (i.e. 14 years so far).
For investors who have followed their advice, a small $1,000 investment would be worth almost $200,000.
If they had invested $10,000 at that time, their $10,000 investment would be worth $2,000,000.
Too many people are not patient enough to reap the massive rewards of long-term investing.
But, the secret to long-term investing success is patience.
Zoom Video Communications
More recently, Zoom is another Motley Fool’s Ultimate Buy Alert.
You can see that Tom Gardener first recommended it on 5th July 2019 in Stock Advisor with a buy price of $91.88.
Months later, David Gardner also recommended Zoom on 19th March 2020 with a buy price of $123.77.
Tom’s Reasons for Buying:
- Zoom has quickly become a leader in its field, due in large part to the exceptionally positive response from its customers. Zoom’s software was designed specifically for video conferencing, and that’s helped the company avoid its competitors’ problems and make its platform more reliable and scalable.
- The addressable market for video communications is huge, and trends toward working remotely will only make it grow over time. Zoom currently estimates $43 billion for the total market opportunity by 2022, and that gives the company plenty of runway to ramp up its revenue.
- Founder and CEO Eric Yuan is a visionary in the field whose financial interests are still squarely aligned with shareholders, and employees believe in the company’s mission. Reviews on Glassdoor show nearly unparalleled satisfaction within Zoom’s workforce.
David’s Reasons for Buying:
- Recent events have highlighted the importance of remote communications, and having contingency plans for education, medicine, and other areas will become a necessity.
- Zoom’s video-first platform is best in class and wins rave reviews from users, who are spending more on the platform each year.
- The company is making a push into unified communication, including enterprise phone service.
After both have recommended Zoom, its stock price continued to go up to as high as $568.
That’s a whopping return of 518% since Tom’s recommendation and a pretty good return of 360% since David’s recommendation.
Although Zoom’s share price has retreated from its high and is trading around $389.98, you would still at least tripled your investment if you followed Tom’s recommendation and doubled your investment if you followed David’s recommendation.
Here’s another Motley Fool Ultimate Buy Alert.
In 2011, David first recommended Tesla at a buy price of $6.18.
One year later in 2012, Tom made a buy recommendation of “Tesla” at $6.18.
Tesla is up 13,606% since it received the “Ultimate Buy” sign in 2012.
So, a small investment of $1,000 would turn into $136,000 if you had acted on this “Ultimate Buy Alert” in 2012.
The Trade Desk
This is another Motley Fool Ultimate Buy Alert in recent years.
In Feb 2017, David first recommended to buy The Trade Desk at $34.30.
Then, in Oct 2017, Tom made a buy recommendation on “The Trade Desk” with a buy price of $62.57.
Two years later, Tom recommended the stock again.
Fast forward to 2021, The Trade Desk is trading right now at $854.02.
What does that mean?
The Trade Desk has been up by 12,648% since Tom agreed with David in Oct 2017.
How To Get Motley Fool Ultimate Buy Alerts
So, you’ve seen the impressive returns of all the ultimate buy alerts.
What is the best way to get theses real-time buy alerts?
The best way is to subscribe to the most popular Motley Fool stock picking service – Stock Advisor.
With Motley Fool Stock Advisor subscription, you will get the following:
- You will receive two stock recommendations every month, as well as their monthly “Best Buys Now” from legendary investors Tom and David Gardner
- On the first Thursday of the month, you will receive Tom Gardner’s stock recommendation
- On the second Thursday, you will receive Tom’s 5 New Best Buys Now
- On the third Thursday, you will receive David Gardner’s stock recommendation
- and on the fourth Thursday, you will receive David’s 5 New Best Buys Now
- You will receive a real-time email notification when it’s time to sell, so you are never left wondering what to do
- You gain instant access to all past Motley Fool’s Stock Advisor recommendations
- You gain instant access to all of their stock reports
- The Motley Fool’s Top 10 Best Stock to Buy RIGHT Now report that features some of their recent picks that still offer the best potential return.
- The Motley Fool’s Top 5 Starter Stock features the ideal stocks that should be the foundation of new investor’s portfolios.
For all their stock recommendations, they will walk you through the buying case for a stock, spelling out exactly why a company might be a good addition to your portfolio, as well as the potential risks.
On top of that, they will continue to monitor and track the recommended stocks and send you updates whenever there is any.
When they decide that it’s no longer a stock that is worth holding, they will send you a “Sell” alert as well.
So, you don’t have to worry about when you should sell your stocks.
This is a very important factor to consider when you choose a stock picking service.
You DON’T make money by just buying the stocks.
You only realize a profit when you SELL the stocks.
So, you have to know when to buy and also when to sell it.
That’s also why I like Motley Fool because its stock-picking service is much more than just recommending the best stock to buy right now.
So, how much does Motley Fool Stock Advisor cost?
Its annual membership is only priced at $199 a year.
Right now, there’s a special discount of 50% OFF on the annual membership when you click the link here to try it out for 30 days 100% risk-free.
So, for $99 a year- that’s just $1.90 a week – you can gain unlimited access to their library of expert stock recommendations which are carefully selected to help you grow your wealth.