The Motley Fool Review – Helping the World Invest Better:
The Motley Fool is a multimedia financial services company founded in 1993 by two brothers, David and Tom Gardner.
What started as a small-time monthly investment newsletter that David and Tom would send out to family & friends, eventually turned into a worldwide financial advisory services company that now reaches in excess of 30 million people each month.
So, you say you want growth? It’s clear that The Motley Fool knows all about growth. David and Tom have taken their company from nothing to a multi-million dollar machine at this point.
The only question remaining – can they help you do the same with your portfolio?
What Does The Motley Fool Have to Offer and Who is it For?
The Motley Fool is no longer a small operation with limited service offerings. It’s a robust platform that can help investors of any kind – from beginners to experts.
Through both online and offline products and services, The Motley Fool aims to help people take control of their financial lives.
This is a platform built for the average Individual/Retail Investor looking to achieve market-beating returns on a long-term, buy-and-hold basis.
Overall, they describe themselves as having a ‘business owner’ mentality as opposed to a ‘stock picker’. They’re not looking for quick in-and-out trades, but long-term value holds.
Free Content on Fool.com:
The Motley Fool’s award-winning website publishes hundreds of articles each week for your consumption. These articles cover various financial topics such as value investing, dividend stocks, tax tips, social security benefits, credit card debt, college savings, mortgage interest rates, etc. You name the personal finance topic…they cover it. [Check Out Fool.com]
Subscription-Based Newsletters:
The Motley Fool offers a family of premium newsletters for investors looking for specific, actionable stock recommendations. The most popular being Stock Advisors, which has tripled the return of the S&P 500 since it launched in 2002. Other popular ones include Rule Breakers, focused on innovative companies with potential to disrupt entire industries, and Inside Value, focused on great companies at beaten up or misunderstood prices. [Check Out All Newsletters]
Best-Selling Books:
David and Tom Gardner have authored several New York Times, USAToday, BusinessWeek, and Amazon.com bestsellers. A couple of the most popular ones include The Motley Fool’s Rule Breakers, Rule Makers, The Motley Fool Investment Guide, and Motley Fool Million Dollar Portfolio. [Check Out Best-Selling Books]
Media and Podcasts:
In addition to articles, guides, newsletters, and books, The Motley Fool also offers commentary on various radio & TV shows. A handful of syndicated podcasts can be listened to as well, including Motley Fool Money, Market Foolery, and Industry Focus. Keep up to date with business and investing news. [Check Out All Podcasts]
The Motley Fool’s Philosophy is Buy-And-Hold, Not Timing the Market:
While the information and tips provided within The Motley Fool platform are wide-ranging on various trading, investment, and personal finance concepts, it’s clear that their bias stands on the side of long-term investing, not short-term trading.
That being said, The Motley Fool simply isn’t suited for day traders, swing traders, or anyone with a short-term, technical focus. Their philosophy is to invest in solid business with the mindset of never having to sell.
Of course they do sell for various reasons, but the point is – when they make a recommendation or provide a ‘buy’ alert – they’re doing so with the idea of holding the position for one to two years (at a minimum).
If you consider yourself more of a short-term trader looking to capture profits within weeks, days, or even hours, then The Motley Fool won’t be a good fit for you. A similarly structured site with stock tips and newsletters geared more toward short-term traders is RagingBull.com.
How to Know For Sure if The Motley Fool is Right For You:
Unfortunately, The Motley Fool is not for everybody. Just like any other service, it can’t cater to every type of trader and investor. Here are some points to consider if it’s right for you:
- Do You Have a Long-Term Outlook and Prefer to Build Wealth Steadily Over Time?
- Do You Want to Be in Complete Control of Your Financial Future?
- Do You Have a Strong Desire to Beat the Market on a Consistent Basis?
If you answered yes to these questions, then The Motley Fool is probably a good fit for you. All of their newsletters focus on long-term wealth generation with the goal of consistent, market-beating returns.
As a service provider, they want to empower, enrich, and amuse every single subscriber through information and education.
History of The Motley Fool – Timeline of Important Events:
As The Motley Fool closes in on its 25-year anniversary, it’s important to look back to how it all started. From less than a hundred subscribers in 1993 to millions today, David and Tom Gardner have come a long way since then.
Here are some of the most notable events in their history:
1993: David and Tom published a 16-page newsletter titled The Motley Fool and sent it out to 1,000 friends and family members. 37 of those people took them up on their offer for an annual subscription priced at $48.
1994: David and Tom’s discussion board on the topic of investing became the most popular finance site on AOL. A few short months after that, The Motley Fool officially debuted online.
1996: David and Tom are featured on the cover of Fortune magazine.
1999: Fool.com wins a Webby award for Best Finance Site.
2002: The Motley Fool launches Motley Fool Stock Advisor, its most popular newsletter.
2003: The Motley Fool expands its service line with the launch of Hidden Gems (focused on undercover small-caps) and Income Investor (focused on stocks that pay solid dividends).
2004: The Motley Fool continues its newsletter expansion with the launch of Inside Value (modeled after Warren Buffet’s value investing approach) and Rule Breakers (focused on explosive growth stocks).
2008: The Motley Fool celebrates its 15th anniversary.
2010: Motley Fool Money podcast debuts on radio stations across America.
Netflix +6,200%, Disney +5,900%, and Tesla +850% Since David & Tom’s Initial Recommendations:
I’m cherry-picking returns here, but The Motley Fool’s track record shows the ability to Beat the Market on a consistent basis – simple as that.
Unfortunately, you can’t go back in time and take advantage of these massive gains now, but David & Tom are researching new opportunities just like these each and every day.
As you may or may not know, David Gardner was an early investor in Amazon.com, a position that’s up roughly 5,700% at this point in time. Similar gains can be yours with the right guidance and education.
Conclusion – Is the Motley Fool a Legitimate Platform or a Scam?
Overall, The Motley Fool provides a wide range of financial solutions for investors through stock, investing, and personal finance resources. It’s not a scam, but explosive returns certainly aren’t guaranteed.
|Triple the Market With The Motley Fool’s Flagship Newsletter – Motley Fool Stock Advisor|
|More of a Short-Term Day Trader Looking For Quick Profits? Check Out RagingBull.com|
Yes, David and Tom Gardner have an outstanding track record, but there’s never any guarantee of future results, even though their flagship newsletter, Stock Advisor, has tripled the market since inception.
In the end, millions of investors turn to The Motley Fool for a reason – the ultimate goal of financial freedom through smart, long-term investing.
Written by Matt Thomas (@MattThomasEST)
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They have been around for quite a while now. Their trading and investment advice is on point and a good platform for anyone in the stock market. Their track record is definitely a good buy. But like you said it may not be for everybody. I just checked out your “free resources for beginners” for now.
The Motley fool has been around for quite some time now. I once thought of them a joke until I started to see the actual correctness of their information. I see now that they have grown into a full grown community of like-minded “fools” or should I say “geniuses”. Their brand and logo have become very familiar to the Internet and their trading advice is of good quality.
I keep most of my non-IRA investments in ETF’s focused on consistent dividend yield growth, however, I have wondered about an effective way to parse out individual companies with promise. I have read some articles from Motley Fool, but never looked into them extensively.
I have been considering trying to start trading, so this is an interesting platform to get to know about. It seems legit from your description, and I like the long-term approach to investment.
Does it cost anything to use this platform or how does that work? And is the best way to get started to just sign up for their newletters to learn more or what do you suggest?
Thanks,
Mikael
Hi Mikael – great question. There’s a ton of free content offered on Fool.com relating to personal finance, retirement, and how to invest. For trading, you can take advantage of numerous articles and guides that can help you open up a brokerage account, understand allocation, when to buy & sell, and overall how to get started. There’s a ton of free information there.
Within those articles and guides, however, Motley Fool will promote their premium newsletters. The newsletter options vary depending on what kind of stocks you’re interesting in (dividend stocks, small cap stocks, high-growth stocks, etc.), but these services offer a more focused approach. You’ll receive timely recommendations on what stocks to buy, special reports, and access to a large community of fellow investors.
The best way to get started, in my opinion, would be to immerse yourself in the free content first, expand your knowledge-base, see what kind of investments interest you the most, and then potentially subscribe to a premium newsletter once you have a feel for your own style and preferences. I hope that helps – take care!
Thank you for the informative review of The Motley Fool. I didn’t know they offered so many newsletter options you can subscribe to. So true what you said when you mentioned it may not be for everybody. Everyone is different and you have to find a platform that is right for you.
Hi Joey. Fool.com covers various personal finance topics like retirement (401K, IRA, Social Security, etc.), taxes, mortgage rates, college savings, getting out of debt, etc. – information on such topics can certainly help almost anyone. But as far as the premium stock newsletters go, like Stock Advisor, Rule Breakers, and Hidden Gems, those aren’t necessarily for everyone.
You have to be somebody who wants to be directly and actively involved with your investments, as opposed to handing all of those responsibilities off to a financial advisor, for example. It also assumes you want to pursue a long-term, buy-and-hold approach. These newsletters aren’t focused on short-term opportunities in the market (day and swing trading strategies, for example). That being said, there’s nothing stopping you from pursue both short-term and long-term trading/investing approaches. As an individual, you have to choose what’s best for you.
The good news is that all Motley Fool newsletters currently offer 30-day trials if you’re unsure if they’re right for you. They’re also relatively cheap compared to many other trading and investment newsletters I’ve seen out there – some can run anywhere from $1,000-5,000 and above per year. At the Motley Fool, a yearly subscription to one of their newsletters will only cost about $50-200.
Great article, Matt! Thank you for the information.
This article is fantastic and super helpful for those of us who are looking where to go and get legit information and recommendations on investments. I think your article will be especially beneficial to the younger generation, who is smart about planning and investing. Those who understand that it takes time, effort and patience for money to grow.
Great review, thank you.
Katya.
Where was this article when I needed it several years ago when I subscribed to The Motley Fool? Interesting to note the timeline of The Motley Fool. And as you pointed out, it is not a scam. But at my current age I don’t think long term investing is my bag. So I will delve into the dot com site you mentioned, RagingBull, to see what it has to offer me.
Sorry I couldn’t pump this review out a few years earlier, Trevor! I’d be interested to hear more about your experiences with The Motley Fool if you have the time and desire to share. What newsletter did you subscriber to? Did you see results in your portfolio? etc.
RagingBull focuses on short-term trading, as opposed to long-term investing (for the most part). My two favorite premium newsletters on that site are Jason Bond Picks & BioTech Breakouts, which I’ve reviewed in detail here: JBP Review & BTB Review.