Can the Motley Fool Stock Advisor Program Help You Beat the Market?
The Motley Fool is an online investing advisory firm that has been in business for the past quarter of a century. The Motley Fool Stock Advisor programme serves as the primary point of entry for the company’s premium subscribers. This membership service, the price of which will increase to $99 for the first year beginning in 2021, gives subscribers access to two specific stock recommendations each and every month.
Investors who are not familiar with the Fool are justified in their scepticism regarding online investing programmes that make the promise that they can help you outperform the market because of the prevalence of fraudulent investment schemes online. The unfortunate truth is that the vast majority of investment platforms do not consistently, or even ever, make money for their customers.
We are going to evaluate the Stock Advisor programme offered by the Motley Fool to see whether or not it is worth the investment of your time and money.
What Do You Get With the Motley Fool Stock Advisor Program?
The two specific stock suggestions that are provided on a monthly basis by the Stock Advisor service provide the majority of the service’s value. The company’s co-founders, Tom and David Gardner, personally provide their subscribers with two fresh stock recommendations each and every month.
You will also receive the report titled “Starter Stocks,” as the majority of people who subscribe to this service are new investors. This is an ever-evolving list of ten distinct stocks that has been compiled specifically to assist you in laying the groundwork for your investment portfolio.
The vast majority of these suggestions are well-known, established brands that have a history of delivering reliable returns over an extended period of time.
You will also receive a report titled “Best Stocks to Buy,” which provides an up-to-date listing of investment prospects. These recommendations are typically more up to date and put more of an emphasis on businesses that have a significant capacity for expansion.
You will finally have access to an education portal that provides you with investment lessons, information on current market happenings, and an explanation of the technique that the Gardner brothers utilise when recommending companies.
Are the Motley Fool’s Stock Picks Legit?
The Motley Fool is one of the few online platforms for investing that has any kind of credibility over the long run. Since February of 2002, they have a solid track record of identifying equities that offer high returns. This does not imply that all of their suggestions are successful, but the company’s successes significantly outnumber its failures.
As an illustration, the Motley Fool advised its readers to purchase Amazon shares in October of 2018. On the 10th of October, the price of the share was $1788 per share. On the 31st of January, 2021, each share was priced at $3352 at that time. If you had followed the Fool’s advice and invested when he suggested it, you would have nearly doubled the amount of money you started with.
Tesla is yet another success story that can be attributed to the Fool. The Fool advised its readers to purchase Tesla shares at a price of $88 on the first of the year 2020. After another year, on January 3rd, 2021, the price of a share was recorded at $880. If you had invested only $1,000 in Tesla, you would have doubled your money in just one year, bringing your total investment to $10,000.
The fact that the Fool did not propose stocks from unheard-of companies that went on to become successful is what sets these recommendations apart from others. These were well-known, long-standing companies that received a significant amount of coverage in the mainstream media.
If you had followed the recommendations provided by the Stock Advisor Program, even just these two options would have been enough to more than cover the cost of your subscription.
Is Stock Advisor a Type of Pump and Dump System?
The typical retail investor of today is significantly more knowledgeable than they were twenty years ago. They have a deep-seated distrust for anyone who makes stock recommendations on the internet. The greatest concern is that one will become entangled in a system that involves pumping and dumping.
The cautionary tale known as “The Wolf of Wall Street” is based on the true events that took place when Jordan Belfort advised his clients to invest in traditional blue-chip stocks. After earning the patron’s confidence, he proceeded to make recommendations for penny stocks in businesses that he himself controlled. When the price of the stock reached a certain point, Belfort would sell his shares in these companies and make a significant profit, while his customers would suffer significant financial losses and be left holding stock that was no longer valuable.
In spite of the fact that it would appear to be the same story as the Fool, this is not at all the case. The Fool has demonstrated that it is capable of providing consistent returns on well-established companies. This practise has been carried on year after year, during which time the Gardner brothers have displayed unequivocal candour on the procedures that they follow.
One of the reviews that can be seen on the Motley Fool claims that the overall rate of return on the company’s stock recommendations since the company’s inception is 544 percent.
Will the Motley Fool Help You Beat the Market?
If you invested in an S&P 500 tracker fund instead of following the suggestions of the Fool’s Stock Advisor, your return would be 121 percent, whereas your return would be 544 percent if you followed all of the recommendations.
If you took the advice of the Fool and invested in Amazon, then hung onto it through the highs and lows of the year 2020, you would have been rewarded with a gain of seventy-five percent.
To summarise, even if you have developed a healthy scepticism of online stock picks, you should still consider the Motley Fool’s recommendations because they are supported by concrete data.
Despite the fact that 95 percent of experts are unsuccessful at outperforming the market, this does not mean that it is impossible. The value of Stock Advisor as an investment suggestion platform has been repeatedly validated, making it an excellent choice for investors.