Celebrating 20 Years of The Motley Fool Online

Twenty years ago today, on Aug. 4, 1994, The Motley Fool was born online. In celebration of this special day 20 years ago, our investment team went back and looked at how the Fool Portfolio would have done if we'd left it open instead of closing it in 2003. The results speak to the power of Foolish investing.

Aug 4, 2014 at 3:26PM

This was written by brothers and Fool co-founders David and Tom Gardner.

Twenty years ago today, on Aug. 4, 1994, The Motley Fool was born online. We'd started a year before as a print newsletter for friends and family. It was truly motley: lead essays about movies or sports backed up by several pages of stock picks at the end. Over the course of the year leading up to our debut on America Online, we spent increasing amounts of time online, participating in investor discussions on AOL and Prodigy (anyone remember Prodigy?). We found ourselves totally attracted to this new online medium where we could interact much more quickly and intelligently with a growing community of Fools. This growing community prompted the AOL Finance team of Rob Shenk and Katherine Borsecnik to invite us out to lunch, and plans for keyword FOOL were not just made, but in the months following enacted.

And so on Aug. 4, 1994, we opened up on AOL.

Aod Aol

That first day, we started the "Fool Portfolio": $50,000 of our own real money to be invested in a totally transparent and educational way. Our aim was to demonstrate that we "mere" individual investors could and would beat the market over time. "You can too!" we said, both on our site and then increasingly through our Simon & Schuster books and the coast-to-coast Motley Fool Radio Show, where some of you first found us. The notion that you could beat the market with confidence was a radical proposal at the time. To many still getting (improper) teaching today, it may still seem radical. But from the earliest days of the portfolio, with stocks we picked based on great ideas and information coming in from a growing network of Fools nationwide, beat the market we did. 

Our first stock picks were AOL and some Dow dividend heavyweights, and from there we went on over the years to buy some great long-term winners like Amazon, Amgen, eBay, and Starbucks, some non-long-term winners like Iomega and Celera (amazing but not sustainable), and some downright bad stocks like Excite@Home and 3Dfx. As the stock market hit crazy highs in early 2000, that $50,000 touched a high of just about $1,000,000 for an overall return of 20 times our money. Then everything started falling.

The market came down, the Internet reversed from growth to decline, and our business model -- free ad-supported market advice -- came down with 'em. With the Nasdaq (and all our stocks, too) more than cut in half, it wasn't exactly an easy move to shift our business in 2002-03 from free to premium advice. But we had to, so we chose to close down our beloved "FoolPort," by then known as the "Rule Breaker Portfolio" (and including a talent-laden team headlined by Jeff Fischer), in order to restart again with the new services for which people would actually pay. (They're the services you know today, starting with Motley Fool Stock Advisor.)

And so that portfolio into which we poured our capital and our blood, sweat, and tears -- which started exactly 20 years ago today and was in a sense the first prominent effort on the Internet to provide accountable, winning stock market advice -- closed, in March 2003. Even though it was down two-thirds from its highs, the annualized return from 1994-2003 was 20.16% vs. 9.07% for the S&P 500 with dividends added.

The FoolPort had some cool innovations. In the most un-Wall-Street-like way, we announced every pick we made ahead of time, allowing our viewers to "front run" us if they wanted to; we didn't buy until at least 24 hours later. We were trying to disrupt the financial world and its tendency to take action first and let the public know later. We're still doing that, with services like Motley Fool One and Supernova always giving members a full day first to pick up any new recommendation we make and will later act on. We also supported every stock with its own discussion board; we know, no big deal today. But back then all kinds of skepticism were   heaped on "chatter" in "chat rooms" in "cyberspace" and The Motley Fool was made to sound like we were stretching the outer limits of the investment galaxy with this bleeding edge commitment to community intelligence.


In celebration of this special day 20 years ago, our investment team (thank you, Yervand Khoranian) went back and took the portfolio as it stood in March 2003 and carried the positions right through forward, to today. The question is: Had you just bought and held that portfolio beyond its close on Fool.com and stayed invested till today, how would you be doing?

The results are below, and speak for themselves to the power of Foolish investing:


*Data from S&P Capital IQ; calculations by Yervand Khoranian. Assumes short positions were closed and proceeds from acquisitions were rolled into S&P 500 Spider Index Fund.

Thank you to all our 1994-2003 early Fools who helped create from the outset the world's greatest investment community. To the next 20 years, Fool on! 

The Gardners

Put on some Pearl Jam and relive the '90s! Here's the Fool Port's past in full Foolish display:

David Gardner owns shares of Amazon.com, AOL, and Starbucks. The Motley Fool recommends Amazon.com, eBay, and Starbucks. Tom Gardner owns shares of Starbucks. The Motley Fool owns shares of Amazon.com, eBay, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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