Motley Fool Pro is a Motley Fool subscription service featuring a real-money portfolio composed of stocks, ETFs, and options. Pro is led by advisor Jeff Fischer, who is supported by a team of Motley Fool analysts as he scours the stock market for the best risk-adjusted investment returns out there. It's a more advanced Motley Fool offering that combines several complex strategies to generate income and provide hedges for potential down markets.
Two ways Pro changes it up
Motley Fool Pro differs from more 'typical' Motley Fool subscription services like Stock Advisor in two key ways:
- Pro does not aim to beat the market. Instead, the Pro team is guided by a simple guiding principle (you'll hear Jeff refer to it as Pro's "North Star"): Produce 7% average annual returns after inflation and positive returns over every rolling three-year period. Pro is geared toward investors who are trying to grow their capital while also hedging to prevent massive downswings. That's a tough goal to achieve, since the market...corrects from time to time (think of the 2008 crisis).
- Pro mixes philosophies and strategies. Most Motley Fool stock services have a particular bent, whether it's toward growth stocks, value stocks, small-caps, dividend stocks, options, etc. Jeff Fischer's philosophy in Pro can be simply summarized as: "Follow the North Star." That philosophical flexibility means that Pro can invest in all of the stock types abve, plus ETFs and options strategies of all shapes and sizes. That includes shorting, by the way – after all, betting that the market (or a stock or basket of stocks) is heading south is one of the few ways to make money if the actual market does go south.
What Motley Fool Pro doesn't change
Pro may be distinctive from most other Motley Fool services in some ways, but some underpinnings of our core philosophy remain the same:
- Invest in great businesses for the long term. Here at The Motley Fool, long-term investing is at the core of everything we do. While Pro uses some short-term strategies, like options, they're used as complementary hedges, income streams, and force-multipliers in service to longer-term investing goals. Every stock in the Pro universe is painstakingly researched by the team – which then provides a detailed write-up justifying its inclusion in the portfolio to Pro subscribers.
- Simple, actionable guidance. The Pro team invests in options – including advanced options. Normally those would be incredibly difficult to execute – but the team provides step-by-step instructions on how to complete each trade, as well as educational guidance on the background and thought process behind each trade. That's in keeping with the longtime Motley Fool goal of simplifying complex topics.
- Track every trade. Every Motley Fool newsletter tracks its returns versus its benchmark (in most cases, the S&P 500). The Pro team takes that a step further by trading every recommendation in the stock market using cash provided by The Motley Fool. Real-money portfolios require a keen eye for asset allocation because, unlike when you're investing play money, there's a real opportunity cost to doing one thing instead of another. That forces Jeff and team to be particularly rigorous. Secondly, and perhaps even more importantly, a real-money portfolio signals that we're so confident in the team and their goals that we're willing to put our business' money behind them.
- A vibrant community of investors. Like other Motley Fool subscription services, Pro has a large community of investors on its message boards. These are paying members interested in getting the most out of their subscription by furthering their education. Some talk about Pro trades. Some talk about investing philosophy. Some talk personal finance. The point is: There's something for everyone looking to learn more about investing, and this community is a great place for asking questions and growing in your investing journey.
Motley Fool Pro has plenty of bells and whistles – but the key thing is to figure out what appeals to you. So, to learn more about Pro, click here.