The Motley Fool has long been around as a well known stock club providing trusted investment and financial advice to millions. They are a great source for opinions and expert recommendations on the stock market and individual publicly traded companies.
Furthermore, they have a few premium services with benefits for members only, and one of them is the Motley Fool Stock Advisor. Some may wonder whether it's worth the money, if it's just a click-bait internet scam or if they are a legit source for great investment advice. Here's a detailed Motley Fool Stock Advisor review to answer these questions.
What Is The Motley Fool Stock Advisor?
The Motley Fool Stock Advisor is a premium service for paying members to get access to expert picked stocks. It's one of the better known stock clubs that has been around since 1993. It's for active investors who prefer to pick individual stocks to invest in, rather than putting your money in the hands of mutual fund managers, financial advisors, or investing in exchange traded fund.
In other words, Stock Advisor does all the work for you in determining if the company is well financed, has a healthy balance sheet, great culture, strong reputation, and a growing market, etc.
How Does Stock Advisor Help Investors?
Choosing the right companies to invest in can be an intimidating venture without experience or help from a pro. It's a venture that if done incorrectly can cost you your life's savings.
Active investors who prefer to manage their money themselves, or perhaps even pros seeking additional input on different stocks, can get guided advice backed with factual data on hand picked stocks from Stock Advisor.
Furthermore, managing your money yourself comes at the cost of not having access to the help of a financial expert who is familiar with the stock market. That's where the Motley Fool Stock Advisor comes in, but without the hurdles or obstacles of using a financial advisor.
With Stock Advisor, all you have to do is invest! This means you can buy and sell exactly when they recommend doing so, or you can narrow down their stock picks even further and invest in just the ones that fit your belief system and risk tolerance.
Why should you trust Stock Advisor?
Just take a look at their performance, and clearly they outperform the stock market year after year. That's not to say anything is a guarantee, of course. But, a long track record of success says a lot about trusted recommendations.
Here is how the stock picks from Stock Advisor has performed in comparison to the S&P 500 Index (as of this writing):
The Benefits of Using Stock Advisor
As a paid member of Stock Advisor, you gain access to content that isnt available to the general public. Among the benefits of Stock Advisor are:
- Stock Picks: Access to the short-list of stocks that Tom & David (The Motley Fool founders) believe to be good investments, and why.
- Research Reports: Detailed reports on stocks performance, critical events and how they might affect a particular company, and updates on when to buy or sell a company.
- Engaged Community: Access to an active community with individual opinions, comments and questions on different topics and companies.
- Weekly Recommendations & “Best Buys Now”: As a premium member, you are notified of new stock picks, buy and sell recommendations, and weekly updates.
- Crushability: David's 25 question risk analysis on each chosen company to determine whether it has the ability to withstand any market condition. Crushability scores range from being as soft as an egg to as hard as a diamond, with the diamond meaning it's a solid company in any market.
- Favorites: Add your favorite companies to your list of stocks from Stock Advisor recommendations.
- CAPS: Rate your opinion on different stocks and see what others rate each stock. Compare your performance against other players. This is similar to a market simulator.
- Detailed Stock Quotes: Stock quotes that provide information to help make informed investing decisions including community comments, CAPS scorecard, company ratios, earnings, and company statements.
Below is a screenshot of a stock recommendation by Stock Advisor “at-a-glance”, HubSpot (NYSE: HUBS):
When all is said and done, Stock Advisor gives you access to expert opinions on when to buy and sell stocks, with an engaged community of like minded investors.
Is The Motley Fool Stock Advisor Worth It?
If you are an investor who likes to actively manage your portfolio rather than have someone else do it for you, then hands down stock advisor is worth every penny. You have two payment options: annually or monthly. As of right now, you can join for an annual payment of $99, or a monthly payment of $39.
The price is subject to change, and likely to increase in price. How do I know? Because i'm a current member of Stock Advisor and pay nearly half the monthly price above. They also include a 30 day money back guarantee with no questions asked.