Motley Fool Stock Advisor Review

We’ve all been there: It’s 9:45 a.m. and you’re staring at your brokerage account with your finger on the mouse, ready to make a stock purchase. But you hesitate and don’t go through with it because you’re not sure if it’s the right move.

The dreaded analysis paralysis.

Finding the best stocks to buy is hard work — whether you’re just starting out in the market or if you’re a seasoned veteran with years of trading under your belt. And it’s even more challenging when you don’t have the time or data to make informed decisions.

What is Motley Fool’s Stock Advisor?

Stock Advisor is the Motley Fool’s answer to this challenge. Launched back in 2002 by Motley Fool co-founders David Gardner and Tom Gardner, this monthly subscription newsletter service provides investors with a steady stream of expert tips and financial advice.

The investment newsletter is backed by extensive research — helping investors cut through the noise to understand where you should be putting your money and where you shouldn’t.

Why Should You Use Stock Advisor?

There are two fundamental strategies that you can take with the stock market: You can attempt to track the S&P 500 or you can attempt to beat it by investing in stocks that end up outperforming the index. The former is not a bad plan — the market returns roughly 10% on average every year, which is a lot better than putting your money in a savings account or under your mattress.

The latter approach opens you up to the possibility of a much higher upside, but it’s not easy, and most investors wind up lagging behind the benchmark.

The Stock Advisor service claims to exceed S&P 500 returns by selecting high-quality individual stocks and recommending them to users — and with remarkable accuracy and a long track record of success. In fact, since Stock Advisor’s inception, the stock has produced a return of 562% compared to the S&P 500’s return of 117%. Wow!

Can Stock Advisor Invest For You?

Stock Advisor is not a brokerage service; you can’t buy stocks through it. To invest in the stock market, you need to open up a brokerage account with a provider like Fidelity, Schwab, or TD Ameritrade.

Stock Advisor merely recommends what stocks you should consider buying to beat the market. You can take their advice or leave it, depending on how you feel about the recommendation. Each pick comes with their thorough rationale behind the recommendation, both quantitative and qualitative, so you get to decide if that stock makes sense for you and your portfolio.

As a customer, you are in no way obligated to buy the stocks the service recommends. It’s for educational purposes only, filled with recent picks and stock tickers that you should at least check out.

The Motley Fool Stock Advisor Summary

Here’s an overview of what you’ll get when you sign up for Stock Advisor.

1. Stock Picks

Stock Advisor participants receive two hand-picked stocks every month delivered directly to their inbox. However, these aren’t ordinary stock picks. Think of it like getting personal recommendations from the founders of The Motley Fool. The Gardner brothers go out on a limb with every newsletter and put their reputation on the line — and more often than not, they’re right.

Motley Fool supplements this stock-picking service with advanced research. That way, you’ll be able to see why they are recommending stocks and make a decision for yourself whether you agree with them based on the companies they’re recommending and how market conditions are looking.

Overall, the service encourages members to buy at least 15 stocks and hold them for at least 5 years. In addition to the two picks each month, Stock Advisor offers a bunch of ways to find those 15 stocks.

Best Buys Now

The two monthly stock recommendations are only part of the package that you receive with a Stock Advisor membership. You also get 10 picks from the Best Buys Now feature, delivering timely data to supplement your strategy.

The Best Buys Now feature can point out attractive opportunities and help you understand where you should look in the market.

Starter Stocks

For new investors, entering into the stock market can feel like going into the Home Depot with a checklist that says “build a house.” In other words, it’s not easy to know how you should allocate your money in the market and whether you’re on the right track.

Stock Advisor’s Starter Stocks feature provides recommendations to help you get a strong foothold in the market — typically, these will be a little more stable, a little less risky to give new investors a strong foundation to build on. This feature is also useful for experienced investors, too.

Bonus Data

For extra value, Stock Advisor occasionally provides bonus reports for customers. This extra data can help you pick stocks and discover opportunities and trends based on supplemental information.

2. Historical Data

In addition to providing current recommendations, Stock Advisor also provides a complete list of all the tips they have ever given. So if there is ever any question about past performance or accuracy, you can easily go back and check. This list includes positive and negative recommendations.

As a bonus, you can look back and find previous stocks that the company recommended, which may still be useful. So you get much more than just two stock tips every month. This can serve as a valuable database to draw from and influence your current strategy.

3. Community Resources

Investing is a lot easier and more fun when you communicate with others, and the Motley Fool makes this possible through a strong investing community which you gain access to through a Stock Advisor membership.

By using Motley Fool’s community feature, you can get feedback on top stock recommendations, ask questions, and learn strategies from other investors through discussion boards. It’s a great way to supplement the advice that David and Tom provide in their newsletters.

And a newer feature is Motley Fool Live, a members-only livestream that covers market news, deep dives on stocks, and interviews.

Stock Advisor Pricing

You can access Stock Advisor’s premium service with a membership plan that costs $199 per year, though you might be able to find a sale price that cuts the membership fee in half.

If you don’t like the service, Motley Fool offers a 30-day money-back guarantee, for a full refund. If you’re thinking about making some big moves in the world of investing and are looking for a little extra help, why not give it a whirl?

As mentioned above, Stock Advisor is great for investors who are looking to beat the market. That said, you may still benefit from Stock Advisor even if your goal is to merely track the market. After all, you can never have too much information when investing, and it can help to see what other people are doing with their money.

Here are some additional reasons you might want to consider using Stock Advisor.

You Want to Acquire More Equities

Stock Advisor is useful if you want to add high-performing stocks to your portfolio.

While stock investing is risky, it also comes with a high potential for gains. Young investors are encouraged to build a portfolio that is heavily weighted with equities to get ahead and maximize gains.

As you get older and approach retirement, investing in equities becomes less important. At this point in your life, most financial advisors recommend switching to bonds and cash equivalents to reduce risk.

However, every investor is different, and everyone has different goals and different levels of risk tolerance. You know yourself better than anyone else. So only you can determine which investment strategy makes the most sense for your current situation.

Little Time or Desire to Research

Most investors are busy people who lack the time or desire to do their own research. If you’re a busy working professional with additional obligations, you may have little time left in the week to research and stay on top of your investments.

What’s more, investing with limited data — or worse, Googling stock tips — can produce a half-baked investment strategy that winds up costing you more money than you make.

Stock Advisor streamlines the investing process by doing the research for you, explaining that research, and backing up their insights and new stock picks with years of demonstrated success. Additionally, they publish write-ups if one of their stock picks moved (up or down) 10% or more in a given day. And if something happens to a company that makes them decide to sell, they’ll send out an alert.

Think of it like investing with training wheels on. Using Stock Advisor lets you trade like a Wall Street professional — even if you have no idea what you’re doing.

Long-Term Strategizing

If you’re looking for day trading insights, you won’t find them in Stock Advisor. The investment newsletter is meant for people who have a long-term investment horizon that stretches several years.

For example, Stock Advisor may recommend a good buy-low opportunity on a company with a two- to three-year outlook. This type of insight wouldn’t be useful for a day trader looking for a quick return. However, it could be gold to someone who is looking to build a slow-growth strategy and see their gains compound over time.

Stock Advisor Insights: Three Examples

Stock Advisor offers much more than just charts and figures. You’ll also get access to fresh content to help you make sense of the confusing market.

Here are some examples of topics that you’ll have sent to your inbox by signing up for Stock Advisor.

Planning for a Down Economy

Investing during a down economy is twice as complicated because it forces you to keep a level head and avoid making rushed or emotional decisions.

Stock Advisor addressed this issue by offering five stocks for a down economy, taking some of the pressure off investors by providing insight about good places to put money during the economic downturn.

Determining Whether to Hold Stocks

Another challenge that investors struggle with is determining whether to hold stocks or sell them.

In one recent newsletter, Stock Advisor explained how the number of stocks you hold is a personal decision that is based on a variety of factors — like your risk tolerance and your diversification needs.

Stock Advisor also highlighted a new proprietary tool in this email called Simulators, which uses the Motley Fool historical data to model portfolio scenarios and make stock recommendations.

Here’s a fun fact: Since 2002, holding a stock portfolio of 15 Motley Fool recommendations for at least three years has produced a profit approximately 90% of the time.

Waiting for Volatility to Drop Before Buying Stocks

Investors often fear fluctuations and question whether they enter the market during times of heavy volatility.

In one email, Stock Advisor addressed this issue head-on by explaining how successful investing requires you to think clearly and act with restraint. Investors who can’t keep a cool head during turbulent times should think about waiting until conditions clear up to make moves, or find investment strategies that come with less risk if their stock portfolios are going to keep them up at night.

Of course, these are just small examples of what you’ll find when you access Stock Advisor. Topics range from “home run” stock alerts to forming an investment strategy and everything in between. Basically, if you’re looking to learn more about the world of investing and guide your strategies with actionable insights from experts, Stock Advisor has you covered.

Motley Fool Review: Additional Services to Explore

Stock Advisor is just one premium service offered by the Motley Fool. If you’re looking to get even more information about stock picks, here are some additional options to check out.

Rule Breakers: High-Growth Stocks

The Rule Breakers service is similar to Stock Advisor in terms of the format you can expect. The service, led by David Gardner, offers two monthly stock picks, Best Buys Now, Starter Stocks, and an investment community.

Rule Breakers is geared specifically toward high growth stocks, so you’ll receive a narrower list of company recommendations. The companies they recommend generally are higher risk, but also can lead to higher reward. If you’re looking to build an aggressive stock strategy, you should look into this offer.

Rule Breakers has produced a return of 353% since its inception. The service has a list price of $299 per year, though again they regularly offer discounts.

You can also bundle Rule Breakers with Stock Advisor for $498 per year.

Discovery: Everlasting Stocks

Tom Gardner recently launched a new service offering stock recommendations from his personal portfolio.

The Everlasting Stocks service provides immediate access to 15 stock recommendations, along with future stock recommendations from the same analyst team that has consistently beaten the S&P over the past 17 years.

The service costs $299 per year.

Rule Your Retirement: Index Funds and ETFs

There is no shame in admitting you’re off track or concerned about your retirement strategy. At some point or another, it’s necessary to seek guidance to make sure you are making the right choices to fund your golden years. The last thing you want is to end up needing to work your way through retirement because you didn’t save enough money.

The Motley Fool offers Rule Your Retirement, a service that provides comprehensive retirement advice for customers. Rule Your Retirement comes with model portfolios, mutual fund, and exchange-traded fund (ETF) recommendations, Social Security tips and strategies, and coverage on a variety of topics like insurance and estate planning.

Rule Your Retirement costs $149 per year.

Frequently Asked Questions

Is Stock Advisor a scam?

The numbers speak for themselves. Stock Advisor has outperformed the S&P 500 over the last two decades, proving that the service is no scam. As a customer, you’ll receive investment recommendations and insights along with detailed explanations.

Plus, you’ll have the opportunity to determine for yourself if Stock Advisor is a scam. If you don’t like the service, you’ll have 30 days to cancel your membership and receive a full refund with no questions asked. Again, if you need some help figuring out your investment strategy — and, let’s face it, pretty much all of us do — you can’t go wrong giving Stock Advisor a try.

Be aware that they’ll hit your email inbox pretty hard with offers to upsell to the other services they sell. Maybe one of the other services is a better match for you, but if not, you can adjust your email preferences to shut that down.

Is Stock Advisor affordable?

If $199 seems too pricey, keep in mind that some competing services charge $1,000 per year or more for comparable services. Stock Advisor’s $199 annual fee is a bargain price in comparison — especially when considering the potential ROI that the service could produce for you in the long run through stock recommendations.

What is Stock Advisor’s investing strategy?

Stock Advisor’s strategy is built for long-term investors. This is not a service for day traders, but for people who want to build brokerage and retirement accounts that will produce steady and consistent gains over time.

Day trading is risky. Truth be told, it’s something that only experienced professionals with a high appetite for risk should consider. Most investors should be thinking long-term instead of trying to strike it rich overnight in the stock market.

While some of the luckiest investors are able to make a killing in short order, such a feat is exceedingly rare. If you try to do the same, chances are you’ll end up losing a ton of money.

Can you lose money with Stock Advisor?

If you follow Stock Advisor’s investment advice on when to sell or hold stocks, you have a pretty decent chance of making more money than if you were to make investments that track the S&P 500. The company’s track record speaks for itself.

That said, Stock Advisor doesn’t invest on your behalf. At the end of the day, the responsibility will fall on you to manage your account, which takes trust and discipline.

It’s impossible to say whether you will make or lose money with Stock Advisor’s recommended stocks. After all, the market is inherently risky and unpredictable.

However, you will receive expert guidance to maximize your chances of making money — backed by a platform with a demonstrated history of success.

Is Stock Advisor secure?

Stock Advisor uses standard website security and encryption to protect customer data. Plus, when you open an account through Stock Advisor, you won’t actually be investing any money in the company. Stock Advisor is not a brokerage firm or bank. The only payment the company processes is credit card data when you make a purchase.

What is the Motley Fool’s mission?

The Motley Fool is dedicated to making the world smarter, happier, and richer. The Motley Fool accomplishes this by offering free and premium financial advisory services centered around investing, personal finance management, real estate, business, and career growth.

The Bottom Line

Investing can feel a bit like driving a car without a map or GPS. It’s easy to get lost and make bad decisions if you don’t know the surrounding area.

The Motley Fool Stock Advisor service aims to make life easier for investors by offering high-quality recommendations supported by extensive research and analysis. It’s one of the most accurate and trusted advisory services on the market, which is why the company has over 700,000 dedicated subscribers — a figure that’s growing steadily each year.

Unlike robo-advisor services offered by firms like Robinhood, Stock Advisor does not actually buy or sell stocks like Netflix, Amazon, or Apple for you, which is one of its most powerful benefits.

The platform tells you what you should be looking into as an investor based on top stock advisor picks. But it puts the responsibility on you to go out and complete a transaction or ignore their advice.

Ultimately, you’re looking at an affordable stock advisor subscription service with cutting-edge research and insights for buy and sell recommendations backed by one of the trusted names in the finance industry.

At the end of the day, the more data and insight you accumulate, the easier it is to sort through the hype and determine where to put your money. With enough patience and determination, you can build up a respectable portfolio over time — making it that much easier to achieve long-term financial independence. Good luck!

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