Are Motley Fool Stock Picks Worthwhile?

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Motley Fool is a well-respected, trustworthy, and genuine stock picking service with an almost 30-year track record. It has even outpaced the ever so popular S&P 500, according to its website. Motley Fool is essentially a stock-picking and investment service that operates successfully with a large number of clients. It also employs a large number of analysts and writers to roam the internet and comb through the market for the best stock picks and investment ideas available at any current time.

Motley Fool is best for people who are very interested in semi-active trading it is an excellent service for beginner investors, though anyone is welcome to use it. It enables anyone who uses it to learn about picking individual stocks instead of ETFs or mutual funds. Motley Fool was founded in 1993 by two brothers, David and Tom Gardner.

The massive original launch of Motley Fool gained the attention of many different people, companies, and new stations with coverage coming from places such as The Wall Street Journal and The New Yorker as soon as the news hit their desks. For a long while, it was very much successful, however, in 2001, it hit a huge downfall when the dotcom market collapsed. Today, it is a revolutionary and well-liked platform that people all over the world use.

So, let’s take a look at Motley Fool and find out if their stock picks are worthwhile.

The Pros and Cons of Motley Fool

As with anything, there are many pros and cons to consider, so let’s take a look at some of the pros and cons of Motley Fool to get one step closer to the worthiness of their stock picks.

Pros

  • Quick and reliable information in the form of text and email alerts
  • Affordable and industry-leading costs compared to others
  • Weekly stock recommendations proven by expert analysis

Cons

  • Recommendations can move the market
  • The website is heavily reliant on marketing and sales
  • None of the stock recommendations are guaranteed

Frequently asked questions about Motley Fool

Many people have questions surrounding Motley Fool and here are some reoccurring ones:

  • Can I trust Motley Fool? Yes, of course, you can! Motley Fool is highly regarded in the personal finance industry and is amongst some of the top in the field. For years upon years, they have been used by many different types of people and we are yet to hear anything terrible about them. This company strives greatly to make their customers happy.
  • Can Motley Fool make you rich? In essence, anything done correctly can significantly build your wealth and I’m sure Motley Fool has done that for many people. If you are an experienced and hands-on investor, Motley Fool could definitely heighten your finances, but it is not guaranteed to make you rich.
  • Is Motley Fool advice good? Definitely! In the past 12 months, they have seen an uprise of 115% which is massive, so it is definitely good. For example, if you have a spare $200 to invest every month, over time it will pay for itself with money to spare. 

Motley Fool vs Robo-advisors

Over the past few years, robo-advisors such as Betterment and M1 Finance are seeing an uprise in popularity. This doesn’t particularly surprise anyone, because these days, nobody really wants to work, instead, they want things done for them, that is why they strive to find the best robo-advisor. When you begin to use a robo-advisor, all you need to really do is answer a small batch of questions and then set up a regular deposit of money.

This means you don’t have to research or use a large amount of brainpower which is a great option for some people. However, when you take a look at the downsides of robo-advisors, it becomes apparent why Motley Fool is so good. This isn’t saying that robo-advisors aren’t good, because they certainly are for some people, it just depends on your personal circumstances. 

Are Motley Fool stock picks worthwhile?

Now, the most important question of all can be answered, are Motley Fool stock picks worthwhile? Well, considering they have been somewhat successful for over 30 years and that in present times they have seen an uprise, it is definitely said with confidence that they are one of the best stock picking services. Let’s take a look at some statistics that will put the worthiness of Motley Fool stock picks into perspective.

  • Over the years, it is said that over 88% of Motley Fools stock picks were winners.
  • From the years of 2016 up until 2020, 56 of their 120 stocks managed to double, 32 have tripled, and 21 have quadrupled.
  • They are beating the market significantly and this can be proven by the number of their stocks that have doubled, tripled, and quadrupled. That means that their average return of those 120 stocks is 201% compared to the SP500 with average returns of 53%.
  • The 24 stocks Motley Fool released in 2020 are now up a significant 89% while the ones from 2019 are up 131%.
  • Their picks from 2017 are up a massive 293% which makes the SP500’s look stupid with a small 67%.
  • The longer you hold your Motley Fool stock picks the better they become because their 2016 stock picks are now up a massive 371%.

Another great thing about all of the Motley Fool stock picks is that the recommendations are made by Tom and David Gardiner, the brothers who own Motley Fool and still run the company today. They have made the stock recommendations since day one of the companies’ inception. It is proof that they are extremely committed to their company which is another reason you should feel safe as to where your money is going.

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