Which of Motley Fool’s premium services is right for you?
Joining one of The Motley Fool’s premium services might give you the edge you’ve been looking for to beat the stock market. The Motley Fool was founded in 1993 by brothers Tom and David Gardner. Tom and his team have managed the Stock Advisor service while David and his team manage the Rule Breaker.
The Stock Advisor (join here for a special price) service was launched in 2002 and has a track record of beating the market year after year. The newsletter service includes two monthly stock picks along with ten timely buys. They recommend investors hold the stock picks for at least five years. The Stock Advisor service leans towards value picks.
The Rule Breakers (join here for one year at $99) service launched in 2004. This service looks for innovative companies within new industries like tech, biotech, and other emerging segments. David’s team claims to look for companies with “unquantifiable greatness” that are positioned for a breakout with strong growth potential.
The first difference between the two stock-picking services is the cost. Stock Advisor is $199 per year with Rule Breakers costing $299 per year.
Secondly, the Stock Advisor service focuses on value stocks based on in-depth fundamental analysis. The Rule Breakers service uses fundamental analysis while following an unconventional analysis that is looking for the “x-factor” in companies poised for growth.
Finally, along with 2 stock picks per month Stock Advisor also presents members with 10 “best buys now” recommendations for entry within a list of 300 top companies on their radar. Rule Breakers also includes 2 stock picks per month but only 5 “best buy now” pics for getting in the market within a list of 200 of their recommended stocks.
|Stock Advisor||Rule Breakers|
|$199 per year||$299 per year|
|Value stocks||Growth stocks|
|10 best buys now from 300||5 best buys now from 200|
First, both Stock Advisor and Rule Breakers are newsletter-based stock picking services. Each newsletter will contain 2 stock picks per month. They also include “best buys now” recommendations and foundational starter stocks.
Secondly, both services have beat the comparative return of the S&P 500. Since its inception, Stock Advisor is up 372% vs the S&P’s 122%. (source: ) Rule Breakers is up 210% vs the S&P’s 105%.
Recently, from 2016 through the end of 2021 Stock Advisor was up 171% while Rule Breakers was up 242%.
The third similarity between the two services is an obvious but important one. Both services come from the same company: The Motley Fool. The newsletters these premium services publish and send are in-depth, entertaining, and potentially valuable. Both services include access to email and phone customer service as well as access to member-only areas on their award-winning website.
To read a review about their bundled service click here: bundled review.
|Stock Advisor||Rule Breakers|
|2 stock picks per month||2 stock picks per month|
|Up 372% since inception||Up 210% since inception|
|Fool.com customer service||Fool.com customer service|
It’s important to remember that you are buying stocks based on a premium service that claims to have over 1 million subscribers. That means as soon as their stock pick is released the price will jump up. Therefore you will want to buy your stock ASAP upon their release.
Also, buying single stocks is risky. While having an excellent track record helps The Motley Fool’s reputation its performance is not guaranteed. Another article on this comparison can be read here.
Considering the fact that you have decided to build a portfolio with single stocks that you believe will beat the market returns it’s a great idea to follow someone’s guidance. The Motley Fool has been publishing its stock-picking newsletters for over two decades. Their track record shows that they have what it takes to beat the market.
Naturally, you will need to be dedicated to following their picks and holding their picks for at least five years. This includes holding some losers in hopes of some winners becoming home runs.
If you are comfortable with buying newer, innovative growth companies in high-tech industries I would go with Rule Breakers. Rule Breakers will provide in-depth analysis with a team of experts and a track record of finding winners before they hit the mainstream.
If on the other hand, you are more comfortable looking for value stocks that have a good entry point, solid fundamentals, and a firm future - then I would go with the Stock Advisors service.
The Motley Fool Stock Advisor vs Rule Breakers is an epic battle that will continue for quite some time.