Motley Fool Review: Does This Robo Advisor Really Work?
Everyone wants to make money in the stock market, and there are a lot of tools out there that promise to help you do just that. One of those tools is Motley Fool Stock Advisor, a subscription service that recommends investments to beginning investors. This Motley Fool review will tell you what you need to know about the Motley Fool Stock Advisor, and whether this stock advisory is worth the investment.
This Motley Fool review will explain what is included in a subscription to Motley Fool Stock Advisor, how the product works, the process that company uses to select the investments, pros, and cons of the subscription, and what customers and former customers have to say about the service.
Motley Fool Stock Advisor: Details and Overview
Motley Fool has been providing investment advice since 1993 when brothers Tom and David Gardner took an irreverent approach to investing. The folks at Motley Fool are known for being fun, silly, and on the mark with their recommendations. The company is based in Alexandria, Virginia and is consistently named one of the best companies to work for. They offer some investment advisory products and services. Motley Fool Stock Advisor is their flagship product.
Motley Fool Stock Advisor provides two stock recommendations each month via email. Each pick includes an explanation of why the top investment professional at Motley Fool chose that particular stock, and why it might be a good idea to add it to your portfolio. It also includes a discussion of the risks of the position.
A subscription to Motley Fool Stock Advisor includes access to Best Buys Now, which includes the best of all of the stock selections that have been made since the Advisor began; Starter Stocks, recommendations for stocks to build the foundation of your portfolio; Community, a forum to get information and advice from fellow investors; and Knowledge Base, educational information to help you learn about investing. The service also issues periodic special reports on investing trends and how to make the most of them.
The Motley Fool Investing Process Explained
The Motley Fool process is to investigate promising stocks and recommend them when they are at the best point to buy. A beginning investor should start with the recommended ‘Starter Stocks’ to create the foundation of their portfolio, and then add the stocks that are recommended each month as they see fit. The service espouses adding great stocks to your portfolio and holding them for the long term.
Pros and Cons of Motley Fool Advisor
In this Motley Fool review, we have identified the following pros and cons of subscribing to the Motley Fool Stock Advisor.
Motley Fool Advantages
- You get investing advice from professionals who have been pretty successful at making money in the stock market.
- There is a 30-day money back guarantee if you decide that you don’t like the stock picks or you don’t want to manage your portfolio in this way.
Motley Fool Disadvantages
- The price. An annual subscription to Motley Fool Stock Advisor costs $199 according to the website, but it appears that no one actually pays that price. The ‘special offer’ is $99 for one year, $129 for two years, or $159 for three years. Not an enormous sum, but remember that you’ll need to make that much more on your investments to make money. In other words, the first $99 of gains you make on your investments just covers your cost for the advisory.
- These are recommendations, and you have to implement them in order to benefit from them. You will need some discipline to hold on to the stocks when they advise you to, even if they take a hit.
- The idea of a stock advisory is inherently risky. A company’s stock rises and falls on investor’s perceptions of its value. When someone recommends a group of people to buy the stock and do so, the stock’s price will rise. Eventually, the market will realize the true value of the company and the stock will return to that level. If enough people buy on the recommendation, the stock will see a short term gain followed by a loss down the road. The reverse is true when the recommendation’s purpose is making a sale. The price will decline in the short term as people sell, and then it will return to its inherent value.
Motley Fool Customer Service Review
The customer reviews of Motley Fool Stock Advisor are generally negative, although you should remember that people tend to be more likely to write a review about a product that disappoints them as opposed to the ones they like. The average Motley Fool review gives the product about three stars out of five, but the reviews tend to be either one or five stars. There’s not a lot of a gray area here.
Those who gave a positive Motley Fool review said that they had made a lot of money by buying and holding the recommended stocks. People who gave a negative Motley Fool review usually said that they lost money because the stocks quickly declined shortly after they purchased them.
Since the premise of the advisory is to buy the recommended stocks and hold them for a long period of time, it may be that these investors could have recouped their losses if they had held on to the positions for a longer period of time.
The conclusion of this Motley Fool review is that the Stock Advisor service may be able to help you make money in the stock market if you are willing to follow the recommendations to the letter and if you have a long-time horizon over which to invest. Check out Motley Fool Stock Advisor for yourself, and let us know what you think.