Motley Fool Explorer's mission is simple: Find companies at the bleeding edge of innovation around the world...pick the best ways to play each megatrend...and put real cash behind each pick. Led by advisor Simon Erickson, the Explorer team runs a non-traditional real-money portfolio – instead of stressing the details of portfolio allocation, they make an equal-sized bet on each stock that meets their rigorous selection criteria. After all, their interest is in finding, sizing, and investing in disruptive trends – and Simon and his team retain incredible focus on that goal.
How Motley Fool Explorer picks stocks
Each month, Simon picks a theme to organize that month's exploration around. Maybe it's driverless cars...cybersecurity...or innovative biotech. He then selects four companies that are significant players in that trend from a list of stocks recommended by legendary Motley Fool stockpicker David Gardner. Put a different way, every stock considered in each month's exploration has been through two rounds of vetting – one by David and his team in Stock Advisor or Rule Breakers, and one by Simon Erickson himself.
Simon then assembles a team of experts at The Motley Fool to each pick a stock and write an in-depth, deep-dive research report on its strengths and weaknesses. Then he gathers a hand-picked judging panel to pit these four stocks against each other in a bracket-style challenge. Ultimately, the team picks a winner each month. Stocks which have received this triple vote of confidence – from David, Simon, and the broader Explorer team – receive a $20,000 cash investment from The Motley Fool in addition to the coveted "triple rec."
The next month, this process repeats itself. And the next after that. Giving Explorer subscribers a great opportunity to invest in a group of stocks at the center of massive trends changing the world around us.
Why we're so confident in the Explorer team
You may be wondering: Why exactly does The Motley Fool feel so confident in each Explorer pick? After all, we're willing to pony up $20,000 for every stock Simon and his team pick each month... that's $240,000 per year. It's a big chunk of change.
We believe we have three solid reasons to feel so confident in the outcome of each monthly exploration. First off, we believe that the transformative companies who are redesigning the world around us have a tremendous opportunity to change society – and make shareholders a handsome profit in the mix. When you look over The Motley Fool's best-performing stock picks, it's been the Amazons of the world which have really stood out, as their transformative opportunity has helped make many investors who followed our recommendations rich. We believe lightning can strike twice – or even three times! – and that the Explorer team will successfully carry out its mission to identify and profit from disruption.
That brings us to our second reason for confidence: The people making these decisions. David Gardner is The Motley Fool's preeminent growth investor, and every stock that Explorer even considers for an investment already bears his stamp of approval. The Explorer team, led by Simon Erickson, is a group of die-hard stock investors with a long-term business ownership mindset. Each individual member of the team's investing strength is magnified by their colleagues' insights and abilities.
Finally, we believe the Explorer process is a powerful way to winnow down the choices until we have the best stock to play each disruptive trend. Of course, sometimes that isn't the 'purest play' stock – sometimes it is, instead, the stock that the team believes offers the best potential for risk-adjusted returns. Explorer's holding period is three years, which highlights the long-term nature of the team's thinking.
A special Motley Fool Explorer discount
Motley Fool Explorer is open to new members for a special discount right now. If anything we've described above sounds interesting to you, now is a great time to learn more about the service and whether it fits your investing style and needs. Click here to learn more – and we hope to see you when next month's exploration blasts off!
The Motley Fool has a disclosure policy.