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So, which investment newsletter is better for you, Oxford Club or Motley Fool?
After subscribing to both Motley Fool and Oxford Club, let’s share with you the differences between these two.
Oxford Club Vs Motley Fool: Investment Philosophy
Oxford club believes that nobody can predict the stock market or the economy in the short term.
The only way to determine the best stocks is to look at business fundamentals.
The share price of companies that increase sales, compound earnings at high rates, grow market share, improve operating margins, pay down debt and buy back shares will most likely go up in the long term, regardless of what the economy or stock market is doing.
And the share price of those companies that have flat or negative sales, lackluster earnings growth, and small profit margins will most likely underperform.
In short, Oxford Club thinks that stock market success is about analyzing businesses, not investing in some expert’s macroeconomic forecast.
When it comes to investing, Oxford Club recommends its members stick to the Oxford Club’s Wealth Pyramid to increase returns and lower risk.
Personally, I love the idea of “Gone Fishing Portfolio”.
The Oxford Club Gone Fishin’ Portfolio is the foundation of the Oxford Wealth Pyramid.
It is a properly diversified long-term portfolio with only annual rebalancing required.
As Oxford Club believes that asset allocation is the single most important investment decision, you can see it reflected in Gone Fishin’ Portfolio holdings.
[Note: Actually, you can find the Gone Fishing portfolio online for free on Alexander Green’s website. In his book called “Gone Fishing Portfolio”, you can also find the exact portfolio holdings.]
Oxford Club also has two more recommended portfolios:
- All-Star Portfolio: it’s a diversified basket of funds managed by some of the world’s top-performing money managers such as Warren buffet
- Fortress Portfolio: this portfolio is made up of eight sector funds, each carefully selected to handily outpace inflation while providing complete security and peace of mind in this high inflation and challenging enviroment
All these three recommended portfolios are very solid and had a very impressive performance.
Apart from these recommended portfolios, Oxford Club thinks that a very small portion of your portfolio should be allocated to very promising high-growth stocks that could potentially give you 10x or even 50x returns in the long term.
Personally, I agree with this strategy because these potential 10-bagger stocks that could significantly increase your overall investment returns.
When it comes to investing, Oxford Club also recommends the following:
- Know your exit strategy and stick to it. Let your winners ride and cut your losers short
- Understand position sizing and know the risk level of every stock recommendation
- Cut investment expenses and always tax-manage your investments
Now, let’s compare it with Motley Fool’s investment philosophy and principles.
Motley Fool recommends business-focused investing, seeking out great and amazing businesses with growth opportunities.
That means you approach the market with a “business owner” mentality rather than a “stock buyer” mentality.
Before you invest in any business, you ask yourself where the company will be in the next 5 to 10 years.
Once you have found a great business to invest in, you hold these stocks for a minimum of 5 years and add money regularly to them.
Motley Fool generally recommends investors buy shares of at least 25 companies and hold them for at least 5 years To maximize the odds of long-term investing success.
Here is why.
Motley Fool believes in buying shares of fundamentally strong companies with long-term growth potential instead of trading stocks.
When we invest in these good businesses, we have to allow time for those companies to create all of that value we expect from them.
The longer we hold, the more value we think the company will create.
In the meantime, we should ignore the stock market volatility in the short term and focus on the underlying business itself.
As Warren Buffett once said, “Time is the friend of the wonderful business.”
Committing to holding for at least 5 years has historically made it much more likely a portfolio of Motley Fool recommendations would succeed.
Motley Fool also thinks that it’s important to build a well-diversified portfolio with shares of 25 companies to balance risk and reward.
Why 25, not 100?
It thinks that your portfolio should be large enough to ensure that your eggs aren’t all in one basket, yet small enough to ensure that when you find a real winner, it represents a big enough percentage of your portfolio to make a noticeable difference.
The key difference between Motley Fool and Oxford Club is that Motley Fool believes in investing in a diversified group of fundamentally strong businesses with growth potential and holding them for the long term.
On the other hand, the Oxford Club advocates proper asset allocation (i.e. investing in a mix of bonds, stocks, REITs, and precious metals) as well as short-term targeted trading.
So, which investment approach is better, Motley Fool or Oxford Club?
Motley Fool’s investment approach is sound and it has been proven to work by the market-beating returns it has achieved.
Oxford Club’s emphasis on proper asset allocation also makes sense and its Gone Fishing Portfolio generates good returns in the long term.
However, I don’t recommend short-term trading to most investors because it’s a losing game in the long term.
We don’t see Warren Buffet getting rich trading stocks in the short term.
The only ones who are certainly going to get rich from trading are the stock brokerages.
Oxford Club Vs Motley Fool: Stock Recommendations & Track Record
Let’s take a look at Oxford Club’s recommended portfolios as well as the stock recommendations in its portfolios.
This “Gone Fishing Portfolio” was created in April 2003.
How has it performed so far?
It has done pretty well with all the funds generating a positive return with the highest total return being 563% and the lowest total return being 49% from April 2003 to July 2022.
Now, let’s take a look at stock recommendations for the “Oxford Trading Portfolio”.
These are stock picks for short-term trading opportunities.
This needs active management and it is much riskier.
For example, they gave a “Buy” recommendation in May for the stock “Under Armour” at the buy price of $11.42 with a “25% trailing stop, this stock hits the stop loss with the current price at $8.42.
That means whatever you invested in this stock, you would suffer a loss of 25%.
In April 2021, it recommended Merke & Co at the buy price of $75.97, the current stock price is at $92.78.
That’s a gain of 22%.
So, how has this trading portfolio performed?
So far this year, most of the stock recommendations didn’t do so well because of the market crash.
For its “Ten Baggers of Tomorrow Portfolio”, it recommends all the high-growth (i.e. high risk, high return) stocks.
So, how have the stock recommendations in this “Ten-Baggers of Tomorrow Portfolio” performed?
As of my writing today (July 2022), I can see there are six stock recommendations with three losing stock picks with a maximum loss of 52.9% and the other three winning stock picks with a maximum gain of 127%.
Given such a challenging market environment, it’s reassuring to see that Oxford Club really does its research well and makes responsible stock recommendations.
Because I have seen the performance of the high-growth stock picks from other investment letters such as Paul Mampilly’s Profit Unlimited.
The subscribers have seen most of their stocks fall by almost 90% in a span of months and face losses that might never be recovered.
What about Motley Fool’s track record?
Below is the performance comparison between Motley Fool Stock Advisor and S&P 500 between 2002 and 2nd June 2022.
As of 2nd June 2022, average Motley Fool Stock Advisor recommendations have returned over 357% since inception while S&P 500 has returned 123%.
In short, the Motley Fool Stock Advisor has outperformed the market 3 to 1.
That’s a HUGE difference in returns.
[*Past performance is no guarantee of future results. Individual investment results may vary. All investing involves risk of loss.]
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 May 2022, Motley Fool Stock Advisor has had 171 stock recommendations with 100%+returns.
What that means is that you would have easily doubled your money if you had invested in any of the 171 stock picks by Motley Fool Stock Advisor.
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.]
Just imagine that you actually found out about these great stocks way before everyone else did.
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Oxford Club Vs Motley Fool: Pricing
If you sign up for Oxford Communique, here is what you get:
- Monthly Oxford Communiqué Issues: You’ll receive one recommendation (occasionally two) per month in the newsletter. The opportunity will most often fall into the Oxford Trading Portfolio but may occasionally fit into one of the other three portfolios.
- Weekly Portfolio Updates: You’ll also receive weekly portfolio updates on Tuesdays to keep you up to speed on any developments in the portfolios. These updates will most often feature one stock, highlighting any news or a recent earnings release, plus reiterating our investment thesis.
- Safety Switch Alerts: When a stock closes below our 25% trailing stop or its investment thesis changes, we will send out a Safety Switch Alert the next morning, letting you know to exit the stock.
- Library of Investor Reports: you have online access to ALL of the reports available in the Communiqué library
There are two pricing plans for Oxford Communique:
- Standard subscription: $129/year
- Basic subscription: $49/year (then $79/year thereafter)
So, what is the difference?
The standard subscription includes both digital and print subscriptions to Oxford Communique while the basic subscription only includes a digital subscription.
The Oxford Communique is quite affordable.
The best part is that it comes with a 363-day no-questions-asked money-back guarantee.
It’s really a no-brainer to try out Oxford Club!
If you are a long-term investor who doesn’t like risky investments, you could really benefit from the Oxford Club‘s recommended portfolios as well as the ten-baggers stocks.
Try Oxford Club Out 365 Days Risk-Free!
Now, let’s look at what you get from your Motley Fool Stock Advisor subscription:
- You will receive two stock recommendations every month, as well as their monthly “Best Buys Now“:
- On the first Thursday of the month, you will receive your first stock recommendation
- On the second Thursday, you will receive the first 5 New Best Buys Now
- On the third Thursday, you will receive a second stock recommendation
- and on the fourth Thursday, you will receive the second 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 Now report 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.
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 60% OFF on the annual membership for new members when you click the link here to try it out for 30 days 100% risk-free.
So, for $79 a year- that’s just $1.50 a week – you can gain unlimited access to their library of expert stock recommendations which are carefully selected to help you grow your wealth.
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