First off: This is a great question to ask. After all, before you purchase...well...anything, it's important to know exactly how you plan to use it – and all the benefits it can give you. And different Motley Fool stock-picking newsletters represent different investing philosophies, so you want to ensure you purchase one which aligns with your style and preferences.
Now, let's be upfront: We can't answer this question for you, because we don't know you personally! (And we're just not the people who run around giving out advice to strangers.)
Plus, we believe that once you have the right information, you'll be able to make whatever decision is right for you. (Even if that decision isn't to buy a Motley Fool stock-picking newsletter. They're not for everyone!)
And we'll give you a few quick guidelines to think through what investing strategies you want to pursue. And fortunately, we have what we believe to be a series of attractive options specifically designed to help investors build life-changing wealth.
Now, as you know, there are three great killers of investing returns:
- Fees. Every dollar you pay in fees (whether it's for trades at a brokerage, management fees to a fund or financial planner, or fees for a newsletter like The Motley Fool offers) is a dollar that isn't compounding wealth for you. That's why we recommend seeking out affordable options where possible – and why The Motley Fool strives to offer newsletters at a variety of price points so new investors can start without shelling out an absurd amount of money.
- Inflation. Ever parked money in a CD or a savings account? They pay, what, 1% annually if you're lucky? Inflation is higher than that, which is why we believe that anyone aiming to grow wealth (instead of merely protecting what they already have) should be looking for bigger returns than a savings account can generate. That's why we're dedicated to helping individual investors understand the stock market – since stocks have historically returned over 6% annually beyond inflation!
- Picking bad stocks. The losses from fees and inflation pale compared to the costs of making the wrong investments. So we think it's important to have good, trusted guides who can help you pick the right stocks. And while history can't predict the future, a company with a sterling record of trouncing the stock market is a great place to start. That's why we're proud that our introductory newsletters Motley Fool Stock Advisor and Motley Fool Rule Breakers have soundly outperformed the stock market! More specifically, Stock Advisor has beaten the S&P 500 380% to 91% and Rule Breakers has beaten the S&P 500 170% to 76% (as of July 15, 2019).
We see so many investors lose out on the incredible wealth-building potential of the stock market because of one or a combination of the factors above. That's why we're passionate about helping you take best advantage of the Motley Fool's stock-picking newsletters and – we believe – their potential to help everyday investors take advantage of the enormous opportunities in the stock market.
Now, here's the thing: Every Motley Fool stock-picking newsletter is different...but they're all animated by our long-term investing philosophy and by a shared dedication to curated, high-quality stock picks.
But before you decide which stock-picking newsletter you want to buy, we think it's important that you answer perhaps a more pressing question:
Should I buy a Motley Fool stock-picking newsletter?
Motley Fool newsletters aren't for everyone. Some investors will just never be able to take full advantage of what we believe to be their potential for helping investors unlock the incredible wealth-building opportunity in the stock market. So let's spend a little time going over reasons why you might or might not want to purchase a subscription to a Motley Fool stock-picking newsletter. Our goal is to give you a general sense of how we think about Motley Fool newsletters and how they perhaps could plug into your broader investing strategy.
Reasons not to buy a Motley Fool stock-picking newsletter
Here are a few circumstances in which we'd be skeptical that you should buy a Motley Fool stock-picking newsletter:
- You have no money to invest. If you have no money to invest, why spend money on a newsletter to learn about investing? You might argue that the educational benefits are substantial -- we sure think they are! -- but the fact is that we believe people best learn how to invest by doing. That first stock you own teaches you a great deal about yourself and your investing style -- and we'd question whether it's useful to do a bunch of reading about investing when you're still potentially years away from actually buying any stocks.
- You don't have a long-term investing horizon. We don't think anyone should be investing money in the stock market that they're going to need access to in less than three years. That's for a simple reason: The market is incredibly volatile year to year. But over longer time spans, historically that volatility has tended to smooth out to some extent. (Of course, rare events like the Great Depression sometimes seriously upset the apple cart.) Every stock that any Motley Fool stock-picking newsletter identifies is recommended with at least a three-year time horizon in mind. That gives a business that is in transition more time to get stronger...or for a potential growth ramp to solidify and clarify the business opportunity.
- The stock-picking newsletter would cost too much money. We'll get into how much The Motley Fool's stock-picking newsletters cost further down, but we generally don't think you should pay more than about 2% of your portfolio in annual guidance, advice, and investing fees. So if a Motley Fool stock investing newsletter's annual subscription fee would cost more than 2% of your portfolio value, consider whether you'll get enough value to be worth the big chunk of your portfolio you'll lose to fees each year.
- You're nervous about current events and don't want to invest until things calm down. There are always reasons not to invest. (And the world basically always feels like it's falling apart in some way, shape, or form.) We're not particularly nervous about whatever today's scary news is -- because we believe that great companies in growing industries will ultimately figure out how to prosper regardless of tomorrow's jobs report, yesterday's tariff hike, next week's soybean prices, or last week's election result. And given our investing results -- Motley Fool Stock Advisor, as noted above, has thrashed the market 380% to 91% over the past decade-plus of investing -- we think we're onto something that the rest of the world hasn't quite figured out. But if you don't share our fundamental optimism about the power of great businesses to help investors build life-changing wealth regardless of today's news ... then why buy a Motley Fool newsletter?
Reasons to buy a Motley Fool stock-picking newsletter
- You're seeking to build wealth in the stock market. Now, we wouldn't dream of pretending that The Motley Fool's newsletters are the only way to build wealth in the stock market. We just happen to think that they're one of the best ways to do so. You see, the vast majority of mutual fund managers lose to the market -- which is why many people head over to index funds. And index funds are fine! -- if you're looking to match the stock market's performance. They're designed to follow an index (hence the name), but not to outperform. So if you're looking to do as well as the broader stock market, they're perfectly fine. But here at The Motley Fool, we're focused on outperformance -- that is, beating the stock market -- and if you're of the same mindset, we'd be honored to have you join us on this investing journey.
- You're impressed with The Motley Fool's long history of successful investing. Motley Fool Stock Advisor and Motley Fool Rule Breakers have a long history of market-beating performance, as we noted above. (As you'll recall, Stock Advisor is beating the market 380% to 91%, and Rule Breakers is winning 170% to 76%.) Now, we cannot predict whether we will achieve similar returns in the future -- and anyone who tells you they can predict that is sadly mistaken -- but we like to think that our long history of successfully identifying stocks with huge opportunities is a sign that our teams know what they're doing. After all, we don't think those kinds of results happen by accident. We think it takes a system for identifying high-upside companies...a system like the one we've been honing for the last 26 years.
- You're eager to learn and follow The Motley Fool's proprietary system for picking high-conviction stocks. Our dedicated investing teams are laser-focused on identifying stocks they believe are poised to help investors build incredible wealth. Our system uses a combination of quantitative and qualitative factors to determine the power and quality of the underlying business behind the stock. And given our investing record, you can see why we're incredibly confident in the strength and robustness of this system.
How to choose which Motley Fool stock-picking newsletter to purchase
If you're passionate about taking advantage of the stock market's incredible growth potential, then we have good news: Motley Fool Stock Advisor and Motley Fool Rule Breakers are both available for purchase right now. They're both designed to be good introductory newsletters to The Motley Fool's time-tested, proprietary stock-picking methods. But before you buy one of them, it's important to learn the details so you can understand which one makes better sense for you.
While Motley Fool Stock Advisor and Motley Fool Rule Breakers are designed to be fairly similar products -- and are, of course, powered by the same underlying Foolish philosophy we shared above -- they also have some key differences. They're designed with somewhat different investors in mind, so it's important to figure out how you might want to use each in your overall investing strategy. We actually think that's a good question to ask any time you're trying to figure out whether a stock newsletter is worth the money: What are you looking to get out of it? How does it fit in your broader investing strategy?
What Motley Fool Stock Advisor gets you
Stock Advisor is designed to drive a balanced (but still growth-oriented) approach to stock-picking and investing. With Motley Fool CEO Tom Gardner and co-founder David Gardner at the helm, Stock Advisor is The Motley Fool's flagship newsletter and has more than tripled the market since inception (more specifically, it's beating the S&P 500 380% to 91%). Tom and David each lead a team of analysts in Stock Advisor, and each team recommends a new stock and five best buys now every month. (More detail on these and other benefits below.)
Because Stock Advisor is designed as a balanced growth stock newsletter, it includes many dividend and value stocks, and has plenty of exposure to industries (like energy, industrials, financial services, and transportation) which are usually not associated with growth investing. But given Tom and David's personal preferences for growth investing, it still has plenty of picks centered around tech, healthcare, and other growth industries.
What Motley Fool Rule Breakers gets you
Rule Breakers targets higher growth, higher volatility stocks than Stock Advisor. Advisor David Gardner recognizes that many of the stocks he and his team pick in Rule Breakers will lose -- but he and his team hope that their winners will more than make up for the losers.
Historically speaking, that's worked well, as Rule Breakers is beating the S&P 500 170% to 76%. We've generally learned not to bet against David Gardner.
David and the Rule Breakers team recommend a stock and five best buys every month. Because Rule Breakers is designed as an aggressive growth stock-picking newsletter, it tends to recommend lots of small stocks the team believes have lots of upside in the coming years. Not surprisingly, many of its picks hail from the tech and biotech sectors, although there are still plenty of stocks from other industries.
Comparing Motley Fool Stock Advisor and Motley Fool Rule Breakers
Now that you have the high-level overview, let's talk a few more details. At their core, Stock Advisor and Rule Breakers share certain features that help investors turn the Motley Fool's stock philosophy into an investing strategy they can implement.
- Starter stocks. Both Stock Advisor and Rule Breakers produce a list of companies the teams recommend for new investors ready to get started. They represent the investing philosophies underpinning Stock Advisor and Rule Breakers, and the teams update the lists annually to ensure they're sharing the best stock ideas with new members. Starter stocks are designed to be great introductory stocks for any investor who joins either stock-picking service.
- New stock recommendations. Both Stock Advisor and Rule Breakers publish new stock recommendations on a regular schedule – the Stock Advisor team provides two stock ideas per month, while the Rule Breakers team shares one stock idea per month. These are mostly new stock ideas, although from time to time the teams re-recommend a stock when they're particularly confident in its business trajectory and opportunity.
- Best buys now. Every month, both the Stock Advisor and Rule Breakers teams identify companies that they believe are particularly timely investment opportunities. Maybe a stock has dropped (despite the company reporting great news). Perhaps a company's long-term opportunity has come into clearer focus. Or maybe the company has just acquired another and opened up a new business line that the team believes will further drive its long-term growth trajectory. Regardless, when the Stock Advisor and Rule Breakers teams identify a "best buy," historically it has paid to listen. Rule Breakers releases its five best buys now once per month, while Stock Advisor releases its 10 best buys now in two separate groups of five each month.
How to buy Motley Fool Stock Advisor
If Stock Advisor's incredible record and balanced approach to investing has you excited to start investing Foolishly, then we we've got great news:
Stock Advisor is currently on sale. That's right – although Stock Advisor retails for $199 per year, you can currently get a year of Stock Advisor for just $99.
Given its incredible history of beating the stock market -- and given the number and cadence of picks -- we think that's a steal.
You can take advantage of this special, potentially limited-time introductory rate right here.
How to buy Motley Fool Rule Breakers
If owning some of the most ambitious, aggressive-growth stocks in the market -- all under the guidance of legendary investor David Gardner -- has you ready to start building wealth, then here's how you can get started.
More specifically, Rule Breakers is also on sale. It usually retails for $299 per year, but you can access a special $99 introductory rate if you act now.
Simply click here to take advantage of this special offer.