REVIEW OF MOTLEY FOOL STOCK ADVISOR | Is Motley Fool a Ponzi scheme?

16Nov 2021 by Dayanand Kadella No Comments

Last Updated on October 2, 2022 by Dayanand Kadella

Introduction

The Motley Fool is an investment advisory firm based in the United Kingdom. David Gardner and Tom Gardner launched The Motley Fool in 1993. “The Stock Advisor,” Tom and David Gardner’s most popular stock recommendation service, was introduced in 2002. Is MOTLEY FOOL STOCK ADVISOR a real or a Ponzi scheme? Let’s find out through a thorough walk-through.

The objective of the Fool’s Stock Advisor service is to help YOU invest smarter.

Every month, the Gardner brothers send out 12 stock suggestions in the United States, which they distribute by e-mail and make available on their website.

This Is What You Get…

The Motley Fool offers a unique area for those of you who are just getting started in the stock market.

You’ll receive immediate access to the whole Motley Fool’s Stock Advisor website after signing up, which includes a list of their selections, a stock screener, chat forums, and more.

Then you’ll start getting emails with particular stock suggestions, like this:

Tom Gardner offers a fresh stock suggestion every first Thursday of the month.
David Gardner issues a new stock suggestion every second Thursday of the month.
Tom provides five of his favorite Best Stocks to Buy Now list every third Thursday of the month.
David also shares five of his favorite Best Stocks to Buy Now list on the fourth Thursday of each month.

On fool.com (the site you’re on right now!), The Motley Fool offers free and paid financial advice to millions of individual investors across the world. Stock recommendations, thorough company research, model portfolios, live-streaming video during market hours, and other amazing services are also available. Hundreds of fresh articles are published each week, providing free market news and discussion. Tools and programs available only to members for constructing your perfect portfolio, measuring your performance, and monitoring firms of interest.

The chance of a positive return on a portfolio of 25 companies owned by a Motley Fool Member for at least 5 years is 97 percent. Every day, we assist millions of people all around the world in achieving their financial goals. Every dollar, we think, should be treated as an investment in the future you wish to build. We think that long-term investment in excellent firms is the most effective way to build wealth.

MOTLEY FOOL UPDATED THIS WEEK’S: As of Saturday, November 6, 2021:

Like you, I saw all of The Motley Fool’s ads touting their excellent returns, such as the one below, and I honestly didn’t believe them.

KEY FEATURES:

Midsize Business, Small Business, Enterprise, Freelance, Nonprofit, and Government are some of the users and organizations that Motley Fool works with.
The following languages are supported by the Motley Fool: English.
The Motley Fool provides customer service during business hours and online.
The Motley Fool offers documentation, in-person training, and video instruction.

Market-Beating Return

Stock Advisor has 4xed the S&P 500 over the last 19 years

Stock Advisor’s Performance over the Last 5 Years, 2016-2020

Based on the year of recommendation, here’s a table of the results of the Motley Fool’s picks:

(NOTE: For this research, I’m excluding their stock recommendations for 2021 because they haven’t yet had a year of performance, although they’re outperforming the SP500, and two of them have already doubled.) Their August 5, 2021 pick (UPST) has already returned 149%, while their July 1 pick has returned 35%, their June 3rd pick has returned 101%, their May 6 pick has returned 40%, and their April 1 pick TEAM has returned 97 %.)

The average return on the 120 Motley Fool stocks is 23%, compared to 88% for the S&P500. They say that holding equities for a longer period of time improves their performance. That is certainly accurate since their 2016 choices are up 45%.

So, is it worth it to subscribe to the Motley Fool? Over the previous five years, it has been well worth it.

While 2020 was a difficult year in many ways, if you were a Motley Fool Stock Advisor subscriber, you had a fantastic year because the average return of their 2020 stock picks is now 106%, compared to 50% for the S&P500, 17 of their 24 picks are profitable, and 7 have more than doubled, and 2 have tripled. TSLA was their top 2020 choice when it was trading at $85 per share (split adjusted).
20 of their 2019 equities are up, and 10 have already doubled, compared to the SP500’s 68% gain.
Even better, their 2018 choices are up 248% on average, with 21 of 24 going up.
Their 2017 stock choices are currently up 25%, compared to 106% for the S&P 500, 23 of which are profitable, and 12 of which have more than doubled.
Their 2016 stocks are up 45% vs. 138% for the S&P 500, and 17 of them have more than doubled and 10 have more than tripled.
Keep in mind the trend: the longer you own them, the better they perform and the more they outperform the S&P 500. That’s exactly what you’re looking for!
In total, their 120 picks from 2016 to 2020 have returned 233% on average, compared to 88% for the market.
To be clear, not every one of their stock choices rises, as the table above shows. They do, however, warn customers that they select companies that they want you to keep for at least five years. Given their 2016 stock recommendations’ average return of 451%, I believe they are delivering precisely what they claim.

If you’re wondering how these outcomes are feasible given most Wall Street money managers fail to beat the S&P500 Index, I have a solution for you. It’s because the Motley Fool has regularly chosen numerous stocks each year that have doubled, tripled, or even quadrupled in price during the previous five years. In the previous five years, we’ve seen:

57 of their 120 stocks have doubled,
34 have tripled, and
23 have quadrupled, and
84% of their stock picks are profitable (that is, 101 picks are profitable and only 19 are losers), and
Each year they pick some really high-flyers like Shopify (up 4,628%), The Trade Desk (up 1.05%), OKTA (up 110%), and Tesla (up 1105 percent) (up 1,320%).

STOCKS at Motley fool stock advisor

INDUSTRIES TO INVEST-IN at Motley Fool stock advisor

TETIREMENT PLANS

The Motley Fool’s Top Tips for Increasing Your Profits

The main point to stick at is that in order to achieve these outcomes, you must do precisely what you should do:

EACH YEAR, PURCHASE EQUAL DOLLAR AMOUNTS OF ALL OF THEIR PICKS. You’d get the same % returns whether you bought $500 or $5,000 worth of each of their recommendations. However, keep in mind that you must purchase each selection since you never know which one will be the best performance for the year.
BUY WHEN THEY SAY BUY: It’s not something that happens on a regular basis (5 times in 5 years). However, stocks are occasionally purchased, overvalued, or just do not move, and they will notify you when to sell them.
PLAN TO INVEST FOR A MINIMUM OF 5 YEARS: As you can see, the Motley Fool’s stock recommendations have outperformed the market over the previous five years. Furthermore, they perform better the longer you hold them. That is why, like smart people have done, they advocate holding their equities for at least 5 years.

Finally, at $99 for new subscribers for the first year, it is the absolute BEST VALUE for investors of all levels. It’ll almost certainly be the finest investment you’ve ever made.

Subscribing to the Motley Fool at their promotional rate is a no-brainer if you have at least a few hundred dollars to invest each month and plan to invest for at least five years.

Previous Stock Advisor pick was released on Nov 4^th, Thursday. Other; Rule Breakers pick was released today i.e. Nov 11^th.

The next Stock Advisor pick will be released on Thursday, Nov 18^th.

The MOTLEY FOOL STOCK ADVISOR’s Recent Results

Their most recent stocks have continued to beat the market:

UPST, their selection for August 5, 2021, is already up 149 %.
PAYC, their choice for July 1, 2021, is up 35%.
Their pick for June 17, 2021 is up 34%.
Their selection for June 3, 2021 is already up 101 %.
The choice for May 6, 2021 is already up 40%.
TEAM, their April 2021 choice, is up 97%.
ZBRA’s shares is up 69% in November 2020.
September’s selection is up 35%.
TESLA is up 1,320% since the Motley Fool recommended it on January 2, 2020! (I invested $1,700 in that stock on the day they advised it, and I’m now up $15,144.)
In the last 15 months, the Motley Fool Stock Advisor has recommended one stock FOUR times, and each time they have been completely correct: ZOOM VIDEO (TICKER:ZM). They suggested ZOOM on July 3, 2019, when it was $90; on October 3, 2019, when it was $76; on March 19, 2020, when it was $123; and lastly on April 16, 2020, when it was $150. The stock is now trading at $263. That is how the Stock Advisor achieves its remarkable year-over-year gains.

The 5 Steps to Being Successful with the Motley Fool

You must buy an equal number of shares of each of their stock suggestions when they become available. So, if you save $1,000 every month, you should invest $500 in each of their two monthly stock choices.
Every Thursday, keep an eye on your email and buy their stocks as soon as they’re announced since they usually shoot up 5% in the first few days after they’re launched.
You must intend to retain the stocks for a minimum of 5 years. The Motley Fool is a long-term investment company.
Prepare to sell the few stocks that they recommend.
Paying full price for something is never a good idea: New subscribers may obtain their next 24 stock recommendations for $99 by visiting our special offer page.

Fact Checker at the Motley Fool

I’ll show you all you need to know about the Motley Fool Stock Advisor service in this review. Most importantly, I’ll address the burning question that everyone has: Is it worth the money? Is it true that it outperforms the market? Are the Motley Fool’s advertised returns, such as the one below, truly true?

So, are these findings accurate? Yes, those returns since inception are correct because they picked a lot of stocks in the early days that had absolutely phenomenal returns, such as Amazon (up 21,309% since they first recommended it), Netflix (up 23,756% since they first recommended it), and Disney (up 23,756% since they first recommended it) (up 10,287%)

Those 10,000+% gains on a few early-stage stocks inevitably improve the overall average.

However, if you’re considering subscribing, you should consider how the Motley Fool’s Stock Advisor has done in recent years.

The following are the FACTS from the previous five years:

Over the previous five years, % of Stock Advisor’s choices have been profitable–no other service comes close–and 57 of their 120 stocks have at least doubled.
34 of them have increased by at least thrice.
Twenty-three of them have more than tripled in size.
Because there are so many stocks that double, treble, quadruple, or more, the average return of those 120 stocks is 233%, compared to 88% for the SP500.
The 24 stocks recommended by the Motley Fool’s Stock Advisor 2020 are up 106% on average.
Their 2019 predictions have increased by 108%.
Their stock has increased by 248% in 2018.
Another interesting fact: their 2017 choices are up 254% on average.

The BEST FACT about the Motley Fool is that their 2016 stock choices are up 451%, illustrating my claim that they are about long-term investment and that you should plan on keeping them for at least 5 years.

The most essential data I can share with you is that the price of their stock recommendations often rises a few dollars the day their suggestion is released. To receive these fantastic returns, you must register with stock as soon as it is recommended. That is why membership is so crucial!

Here’s another FACT that few people consider, but is incredibly significant…

The Motley Fool was founded in 1993 by Tom and David Gardner, who now oversee the firm and provide stock recommendations. This is critical because, while you may locate another newsletter that has performed well, you never know who is actually choosing their selections. However, with this service, the two brothers who founded the newsletter have been there since the beginning, and there is no reason to suppose they will leave their own business.

Motley Fool Stock Advisor Summary:

Get 2 new stock picks a month and two lists of the five best stocks to buy now from the Motley Fool Stock Advisor.
Get Instant Access to Their Most Recent Picks
They even tell you when to sell, making investing stress-free and simple.
The previous five years 219% average return compared. 80% and 85% for the S&P 500 Accuracy Rate is $199 a year and comes with a 30-day money back guarantee.
Thursday, November 11, 2021 is the next stock recommendation date.
New Subscribers Only: Current Promotional Offer: For $99.00, you may try it for a year.

Here’s what you’ll receive:

Every month, you’ll get two fresh new stock suggestions and analysis given to your inbox in real time.
All of the Motley Fool’s Stock Advisor suggestions from 2020, 2019, 2018, 2017, and 2016 are available.
The Motley Fool’s Top 10 Highest Stocks to Buy RIGHT NOW report highlights some of their recent recommendations with the best potential return.
The Motley Fool’s Top 5 Starter Stocks report identifies the best stocks for beginning investors to build their portfolios.
They will notify you when they feel it is time to sell any of their stocks, and they will do so 24 hours a day, seven days a week.
Customer care is available 24 hours a day, 7 days a week, Epic part is it’s toll-free. Yes, actual people are on the other end of the line.
You’ll also receive:
1. A detailed explanation of WHY they suggested each stock and the elements that went into their decision
1. Every stock choice has a risk profile that describes the upside and downside.
1. Stocks to Start With: They will give you their 10 rock-solid equities that should be the backbone of your portfolio if you are just starting off.
1. Knowledge Base of a Fool: You may access their whole collection of papers and studies at any time to get their take on other stocks you hold or are contemplating buying.

How Can I Become a Subscriber at the Lowest Price?

For $99, new subscribers can get a full year of the Motley Fool Stock Advisor. The Motley Fool service is normally $199 per year. I’ve saved this New Subscriber page since it has their lowest pricing ever for NEW SUBSCRIBERS ONLY, so if you click here, you can test it for just $99 and get the next 12 months of stock recommendations.

Now, if they keep up their amazing track record over the previous five years, it may be the finest $99 investment you ever make.

For the fourth year in a row, The Motley Fool Stock Advisor has earned our award for Best Stock Newsletter of 2020. Last year, if you were a Motley Fool member, you earned a 91% return, with 20 of the 24 stock recommendations proving beneficial. That includes SEVEN of those stocks, all of which have at least DOUBLED in value! TESLA was their best performance, with a gain of 681% since they suggested it in January 2020. Furthermore, their 2019 stock choices have outperformed the market by 12%, while their 2018 picks have outperformed the market by 232% (SP’s 64%).

In fact, the average Motley Fool stock choice has quadrupled in value over the previous five years, rising by 216%! The 2016 election, the Trump administration, the China trade negotiations, COVID, and the election all fall within this time frame. Don’t miss out on the Motley Fool’s picks for the next administration and the post-COVID economy now that Biden’s tenure has begun. Their itinerary for the next few weeks is as follows:

Tom’s 5 Best Stocks to Buy Now, November 11, 2021
Tom’s New Stock Recommendation, November 18, 2021
David’s 5 Best Buys for November 24, 2021
David’s New Stock Recommendation – December 2, 2021

Stock Advisor is normally $199, however for a limited time, they are offering a special deal for new subscribers only:

For only $99. get IMMEDIATE access to their most recent stock recommendations AND receive their next 24 stock picks in real-time.

(There is no risk because they provide a 30-day money back guarantee)

The Motley Fool Stock Advisor Program in Detail

I’ll also show you in the rest of this article:

When you subscribe to the Motley Fool, you get just that.
When will the Motley Fool’s next fresh stock choices be released?
Each year, the proportion of Motley Fool stock choices that were successful.
Year after year, the OVERALL outcomes of their choices,
And I’ll tell you how they’re doing today, June 12, 2021 (HINT: their choices from 2016, 2017, 2018, 2019, and 2020 are outperforming the SP500 by 121%).

Is the Motley Fool a Good Investment?

My review of the Motley Fool Stock Advisor performance concludes unequivocally YES!

Just so everyone is clear. The Motley Fool’s stock recommendations don’t all go up, but they do choose a number of stocks that DOUBLE or TRIPLE in value each year. As a result, their stocks have outperformed the market by nearly 121% on average.

To fully answer the question “Is it worth the money?” you must first comprehend the price. The Motley Fool Stock Advisor costs $199 per year on a regular basis.

Even at that price, it is a bargain compared to other options. However, new subscribers may get a year’s subscription for only $99 by clicking this Motley Fool NEW SUBSCRIBER DISCOUNT link.

The Motley Fool Stock Advisor service is certainly worth it for $99 per year, with a 30-day money-back guarantee and based on their previous five years of success. Although not every company will rise, over the previous five years, 89% of their recommendations have been successful, and the average has outperformed the S&P500. You stand to gain a lot more than you stand to lose.

Assuming you have enough money to invest each month and are willing to leave it invested for a few years, it appears to be a pretty safe option.

Is it true that the Motley Fool can tell you when it’s time to sell?

Yes, you can count on the Motley Fool to inform you when it’s time to sell a stock. They’ve given five sell recommendations in the last five years. Four of these sell orders were issued because the stocks were being purchased and it was suggested that they be sold to get the money out.

How much does it set you back?

The annual fee is normally $199. There is no obligation. With a 30-day money-back guarantee, you may cancel at any moment. The Motley Fool, on the other hand, frequently promotes special offers for new clients, such as

More Detail….

You’re undoubtedly already familiar with the Motley Fool and their services.

So, what’s the big deal about the Motley Fool?

There are various reasons why you should be concerned.

For starters, it makes stock investing considerably simpler and less stressful. Simply read their weekly suggestions and buy what they propose. Because the “5 Best Stocks Now” are frequently re-recommendations of past stocks, you’ve to only buy the two NEW selections each month. And just sell any of their stocks that fall by 32% to reduce your losses. This aids in the preservation of funds in the account.

Second, as you can see from the examples given above, they do choose a few equities each year that double or treble in value.

Third, it’s a terrific location to start learning about the stock market if you’re just starting started. Few things that financial counsellors agree on, but they all agree that the sooner you start investing in the stock market, the better off you will be in the future.

We don’t have the time or the expertise to go through hundreds of stocks and determine which ones are the best. The Stock Advisor membership is designed specifically for the Individual Investor to do this.

What Do You Get Besides That?

When you acquire a Stock Advisor membership, you’ll have unrestricted access to all of their current and historical stock recommendations, in addition to two new stock ideas every month.

“Instant notifications” are also included. They’ll send you an email as soon as one of these things happens to a stock on your watch list:

Buy notifications have been enabled.
When the time comes to sell (this is huge)
Price adjustments that are significant

You’ll also get access to the Fool’s research website, which has paid articles and studies on the stock market in the United States. Their reports page is really intriguing, and it covers a wide range of current issues in our society, like virtual reality, self-driving vehicles, lithium batteries, marijuana stocks, and so on.

Drop in comment your opinion, Is Motley Fool is a Ponzi Scheme or a legitimate service?

Is the Motley Fool a Scam or a Legit Company?

For some reason, I receive this question a lot… But there’s still a simple answer: The Motley Fool is NOT a scam. As you can see, my Fool choices have performed spectacularly over the previous five years. Of course, it isn’t flawless, and not every stock advice is profitable. They are, nevertheless, a legitimate corporation, and its stocks have outperformed the market over the past five years.

These days, though, you can discover tweets on everything!

Since 2016, The Motley Fool’s stocks have outperformed the market. My data demonstrate this. That is the most crucial information you should have. Furthermore, the Motley Fool has been around since 1993 and employs over 250 individuals. And their Stock Advisor presently has over 700,000 users. There’s no way a million people can be incorrect!

Here are the FACTS, for the benefit of anyone reading the Motley Fool review:

Without a doubt, the answer to the issue of whether or not the Motley Fool is a real corporation is YES. Among investors, it is well-known. They currently claim to have over one million subscribers.
I signed up for the service in 2015, and the results are mentioned above.
The “Motley Fool Global Opportunities Fund Investor Shares (FOOLX)” is their very own mutual fund.
Tom and David Gardner, the Fool brothers, don’t hide from their consumers. On their verified Twitter profile, for example, they frequently have fascinating ideas.

Here’s an intriguing article on their experiences with Amazon.com (which they bought in September 1997!)

Here’s another Stackexchange testimonial from a client, demonstrating that it’s not a fraud.

Let me address a few more questions now that we’ve debunked that fallacy…

Will it Aid you in earning more money?

YES is the quick answer. Their previous performance demonstrates this. As I indicated earlier in this study, their stock recommendations have returned an average of 219%since 2016. That is to say, they have more than tripled.

Additional Insights from the Motley Fool’s Stock Advisor 1- True, there are many choices to choose, but after putting them to the test, the Motley Fool gave the highest returns and value for money.
The Stock Advisor is normally $199 a year, but if you are a new subscriber, go to this new subscriber page to discover their current discounts, such as 50% off or a 30-day 100% membership return period. It’s a financial commitment, but one that will pay off handsomely.
The “Fool Effect” is undeniable. With 1,000,000 members, you should expect their stock recommendations to rise by $2 to $5 within hours of their announcement. So be ready to buy as soon as you get the email on Thursday.
Like any other stock selection service, their investing ideas aren’t guaranteed 100 percent of the time. They appear to choose one stock a year that falls down 20-30%, based on my experience over the previous 5 years. They will, however, notify you when it is time to sell it. Place a stop loss order at 32% of your buy price, according to my advice.
After six months of paper trading their stock choices, you will feel confident enough to start buying all of the Motley Fool stocks in your Etrade account. Here are a couple images from an Etrade account that indicate when they bought them and how much they got back. Because the TWLO was suggested twice, they have purchased it both times:

How much does it cost to hire a stock advisor?

The Stock Advisor from The Motley Fool is now available at its lowest price ever.

Is Motley Fool a Ponzi scheme?

Certainly not. They are, in reality, the polar opposite. They advise holding their investment selections for at least five years.

Is it applicable to penny stocks?

For penny stocks, I recommend Timothy Sykes, a penny stock trader who made $1.65 million as a university student by day trading.

He has a few educational parts that could be of interest to you:

Penny stocks Superman is taught by Tim Sykes.
Guru trading alerts and research – learn from successful traders.
Examine your transactions.
Is the Motley Fool a good place to learn about technical analysis?

Without a doubt, no. Technical analysis is examining transaction volume and prices before attempting to determine stock price direction.

The Motley Fool’s service is for long-term investment and is based on fundamental research.

Is it Beneficial for Day Traders?

No. Buying and selling stocks on the same day is known as Day Trading. The Motley Fool suggests stocks that you should own for years rather than minutes.

It focuses on buy-and-hold portfolios looking for capital growth. This includes a lot less stress and long-term progress.

Motley Fool Stock Advisor Summary:

2 New Stock Picks a Month and 5 Best Stocks to Buy Now,
Investing is made simple and stress-free with immediate access to all of their recent picks;
They even tell you when to sell in the last five years. 219% average return compared. 80% and 83% for the S&P 500 Accuracy Rate

Conclusion from The Motley Fool’s Stock Advisor

Is the Motley Fool Stock Advisor a good investment?

The answer is unmistakably, YES.

Tom and David Gardner’s Stock Advisor, out of all the stock subscriptions as tested over the years, gets you the most bang for your buck and is well worth the $99 for the first 12 months for new customers.

As I mentioned at the outset of this analysis, the portfolio has outperformed the S&P 500 by an average of 139% over the previous five years, so it’s been well worth it.

The most distressing event is:

With over 1,000,000 subscribers, the Fool Effect on stock prices is undeniable. The price of a stock often rises $2 or $3 within the first few hours after receiving a suggestion, so you’ve to place purchase the stock immediately.

The Motley Fool Stock Advisor Service is a free service provided by The Motley Fool. In comparison to the Rule Breakers Service,

The Rule Breaker stock selection service operates similarly to Stock Advisor. They both routinely outperform the market, publish two stock choices every month, and are ideally suited to long-term investors. The following are the distinctions:

Only David Gardner and his crew make Rule Breakers choices.
These stock picks concentrate on high-growth stocks that they believe will outperform the market.
The outcomes are far more erratic than those of the Stock Advisor.

The Motley Fool Rule Breakers recommendations feature better long-term gains, but also more volatility. As a result, if you miss only one Rule Breaker choice each year, your outcomes might be much worse.

Drop in comment box what is your opinion, Is Motley Fool is a Ponzi Scheme or a legitimate service?

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