The Motley Fool – Breaking Rules and Taking Names
The people who work at The Motley Fool have always been a touch out of the ordinary. In effect, Fool’s creators David and Tom Gardner have amassed personal fortunes by refusing to follow common wisdom and following their own paths. Marching to the beat of their own drum has resulted in returns that substantially exceed the average return of the S&P 500.
If the moniker Fool is any indicator, Fool is not someone who takes themselves too seriously. And it’s possible that this will work to their advantage. As a company that was founded all the way back in 1993, Fool has seen it all, and more, in the modern stock market: the euphoria that preceded the dot-com bubble, and the gloom that followed; the horror of the 2008 global financial crisis, and the quiet jubilation that followed; and the COVID-19 pandemic, with all of the uncertainty and change it has brought with it.
And the Fool hasn’t stopped smiling since then. In recognition of the fact that there may be no surefire way to beat the market, this stock advisor programme places emphasis on a long-term investment approach, a “buy and hold” philosophy based on selecting sound, if occasionally quirky, stock selections. The Fool is not a get-rich-quick programme; rather, it is a resource for investors of all stripes who are interested in preparing for a better, more secure future.
The “Rules Breaker” initiative of The Motley Fool emphasises the values that the company stands for. Fool is able to transform their unconventional intuitions into profits by concentrating on what Bob Haegele of Modest Money refers to as “business disruptors” rather than established household names. Enterprises such as Tesla, Facebook, and Etsy have all been cited as examples of companies that have defied the odds and originally shocked customers with innovative products.
Breaking Rules and Taking Names
Following Rules Breaker choices differs from using the company’s tried and true “Stock Advisor” service, which is available to all customers. Inherently riskier than traditional picks, Rules Breaker selections tend to prefer technology companies over all else.
Stock Advisor may still be the best option for investors who are committed to a long-term, buy-and-hold strategy. Rules Breaker deviates little from the Fool’s standard procedures, and as a result, it may be an intriguing alternative for people seeking speedier returns on their investments.
Let’s take a deeper look at the Rules Breaker portfolio maintained by The Motley Fool.
- Breaking the Rules and Calling People Names
A high degree of volatility is characteristic of the Rules Breakers stocks recommended by The Motley Fool. These stocks are predominantly of the hyper-growth sort and have a strong emphasis on technological advances in the technology industry. This means that investors may expect a lot of ups and downs with their investments in these options as well.
- Although the Rules Breakers selections are unclear, Fool has a strong track record that can be relied upon. Despite this, his record is outstanding and reassuring. In most cases, Rules Breakers’ selections outperform the market average by a factor of ten. While there may be the occasional dud, there are also opportunities to uncover hidden gems that can result in incredible four-figure returns.
- Rules Breakers is a relative bargain, as are all of The Motley Fool’s offerings, in our opinion, and represents incredible value. At a list price of $199/year, it is impossible not to benefit if the Fool’s team of analysts continues their famous run on some of the best and most overlooked companies on the market. The price of $199 begins to look like pennies in comparison to previous prices.
- Diversify, diversify, diversify is the mantra.
This is a phrase that cannot be overstated. Diversification is essential for risk management, and with broad market risks and swings affecting almost all stocks, bonds, and exchange-traded funds (ETFs), it’s ideal to have your money distributed over a variety of sectors and asset classes.
The experience of working with The Motley Fool’s Rules Breakers is no exception to this. Due to the limited number of stocks selected each year (just 24), it would be stupid for investors to limit themselves to only these high-potential, yet erratic, options.
It has been our experience that Rules Breakers recommendations perform best when combined with the types of solid, well-known companies that typically appear in the Fool’s Stock Advisor portfolio. By combining the best of both worlds, your portfolio will be well-positioned for long-term success while also benefiting from the Fool’s insight into the here and now of the markets.
Diversify, Diversify, Diversify
Is it possible to tell the difference between the two? In addition to his ability to entertain with music and singing, the motley fool, or what is popularly known as a court jester, was also a superb storyteller, which is perhaps paradoxical given his position in society. Storytelling is not only for entertainment purposes; as literature students are well aware, stories provide us with a means of seeing things in a different light, of being separated from our usual vision of things, allowing us to return to the world with a revitalised sense of life.
The Motley Fool – Fool or Seer?
In spite of their amusing moniker, the people at the Motley Fool do not make fools of themselves: their investments are thoroughly researched, and their success is a result of a combination of knowledge, intuition, and a good old-fashioned work ethic. Unlike the majority of investors, Rule Breakers stock recommendations are the consequence of perceiving the world of finance a little differently than we do.
Essentially, we may suggest Fool’s Rule Breakers in the same manner that we recommend their more well-known Stock Advisor feature, with the simple advisory warning that these picks straddle the knife-edge of common sense, resulting in a kind of overall boom or bust profile.