Updated August 9, 2022

Motley Fool Stock Advisor Review

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Motley Fool's Stock Advisor service has boasted impressive historical returns. But are they legit? And are their stock picks worth the yearly fee?

Motley Fool
$89/year for Stock Advisor for New Members

Overall Score

4.3

Price

4.0

Ease of Use

4.5

Performance

4.5

Research

4.0
5-point scale (the higher, the better)

Pros and Cons

  • Strong historical returns
  • Expansive research and educational tools
  • Real-time alerts
  • Premium services can be expensive

Bottom Line

Stock advisor with strong track record for beating the market

Motley Fool's Stock Advisor claims they can beat the market. And it seems they have the numbers to back up this claim.

But is this service worth $100/year?

Find out with this review of Motley Fool's Stock Advisor, including how their recent stocks are faring. Plus, get a closer look at their crazy historical returns and what others are saying about it.

What is Motley Fool Stock Advisor?

Founded in 1993 by brothers Tom and David Gardner, Motley Fool (or simply "The Fool") is an online platform offering financial and investment advice.

Their website draws in amateur investors with lots of free, beginner-friendly educational content like "Investing 101," "Credit Cards 101," and "How Much do I Need to Retire?"

Stock Advisor is Motley Fool's flagship stock-picking service.

For $99/year, Motley Fool will send you two of their best stock picks each month and 10 "timely new buys". You also get access to their premium investor education materials.

This service boasts an impressive 371% inception to date return compared to just 121% for the S&P 500 over the same time period (more to come on this claim).

Is Motley Fool a rip-off?
For the current promotional rate of $99/year, Stock Advisor is priced competitively compared to similar investor subscriptions. A good number of their picks have yielded strong returns. Some of their more premium services ($500+) are borderline pricey, though.

What You Get with Motley Fool Stock Advisor

With the Stock Advisor membership, you get:

  • 2 new stock picks every month
  • 10 Best Buys Now picks for current timely investment opportunities
  • Starter Stocks recommendations to build your portfolio
  • Dozens of stock reports written by experts
  • Instant alerts for buying or selling recommendations
  • Full library of all their published content, including articles, videos, and eBooks
  • Online community of investors to share and learn from

You get detailed reports outlining the investment thesis and why that stock is a top pick. This can help you decide if the stock fits in your portfolio.

How Much Does Stock Advisor Cost

Stock Advisor costs $99 for your first year. After that, you'll be renewed at the current price, which is $199 per year.

CreditDonkey readers can get a discount for the first year. Check it out below.

If for whatever reason, you immediately regret signing up or feel like it's not worth it, Motley Fool offers a 30-day money-back guarantee. Just cancel within 30 days for a full refund.

Who Motley Fool Stock Advisor is Best For

The Stock Advisor service is for:

  • Long term investors who plan to hold their stocks for least 5 years
  • DIY investors who manage their own portfolios
  • New investors who are not sure what to invest in
  • Busy investors who don't have time to do their own stock research

Motley Fool Stock Advisor is NOT for day traders. They use the buy-and-hold investing strategy. They pick stocks that they believe will perform well over the long term.

Who Should Skip Stock Advisor

Motley Fool Stock Advisor is probably not for:

  • Day traders looking to make a quick buck
  • Investors not comfortable with risk and very volatile stocks
  • Those nearing retirement and don't have years to hold
  • Hands-off investors who prefer robo-advisors or index funds over managing individual stocks

Stock Advisor Pros and Cons

Pros

  • History of strong returns vs. the S&P
  • Includes research and rationale for each stock pick
  • Price is comparable to similar platforms, like Seeking Alpha
  • Includes real-time buy/sell alerts as market conditions change
  • Access to premium investor educational content and interviews

Cons

  • Historical outperformance heavily relied upon a few stocks
  • Some services are rather expensive (>$5,000/yr.)
  • Could be pricey for small investors

Now that you got an idea of the basics, let's dive into the Motley Fool review.

Not ready to take the plunge with Stock Advisor? Dip your toes into investing with a robo-advisor. Check out this list for our best picks.

How Motley Fool Stock Advisor Work

Motley Fool's business model works like any other stock newsletter subscription. Once you sign up, you instantly receive their two stock picks for that month, and for each month moving forward. You also get instant access to all of their previous recommendations as well.

Motley Fool recommends stocks that they believe have the potential for big growth. They mostly pick large, established companies and blue chip stocks.

There are some criteria for their picks:

  1. The company must have a market valuation of at least $200 million
  2. The company must have enough daily trading volume that you can buy in without moving the market too much

Their stock picks usually come from the technology, consumer, industrials, healthcare, communication services, and financial sectors.

Since their focus is on high growth, they don't really pick high dividend stocks.

Does Motley Fool recommend penny stocks? No Motley Fool will not recommend penny stocks. They only recommend stocks from well established companies with strong growth potential.

Is Motley Fool Legit?

Yes, Motley Fool is a legit stock advisor service. The Stock Advisor service has been around since 2002. They're completely transparent about the performance of their stock picks since the very beginning. You get detailed research so you can make the best decisions for yourself.

It's important to remember that Motley Fool simply provides monthly stock recommendations and their corresponding research. They are not financial advisors. So it is up to you to choose if and when to act on their recommendations.

Between the two monthly top picks and their 10 timely buys, they'll be recommending dozens of stocks each year. A lot of them will be winners but some will certainly be losers too.

Is Motley Fool Stock Advisor worth it?
If you want a fresh set of well-researched fundamental stock picks each month, Stock Advisor is worth it for $100-200/year. Their historical returns are skewed by some very big winners, but are nonetheless still very attractive compared to similar services.

Are Motley Fool Stock Picks Good?

Since the service's inception in 2002, Motley Fool claims that an equal-weighted portfolio of its Stock Advisor picks returned a total of 371% vs. just 121% for the S&P 500 index. This is as of August 2022.

Note that Motley Fool's performance significantly decreased along with the 2022 stock market decline. In 2021, their stock picks' average returns were as high as 551%.

They have picked some big winners. Here are some of Motley Fool's top picks and their returns since they first recommended it.

  • Amazon (up 18,604%)
  • Tesla (up 14,472%)
  • Netflix (up 10,578%)
  • Disney (up 6,777%)
  • Nvidia (up 11,548%)

These surely had a substantial impact on that 371% return. Without these outliers, the Motley Fool's track record wouldn't be as high. However, they have proven that most of their picks have had a positive return.

Overall, more than 80% of the ~120 stocks recommended by Stock Advisor since 2016 have outperformed the S&P 500, which is pretty impressive.

That said, they do occasionally recommend some duds. One example is Luckin Coffee, whose stock price plunged in 2020 after allegations of corporate fraud.

Overall, their big winners have earned much more returns than the big losers have lost. But as always, remember that past results do not guarantee future performance.

How to log in to Motley Fool Stock Advisor
Once you go to the Motley Fool website, there is a login/register link at the top of the screen. It's free to create an account, and after you log in, it will show you your account details and a list of the active subscriptions that you signed up for.

Does Motley Fool Tell You When to Sell?

Yes, Motley Fool will issue a sell recommendation when they believe that it's best to sell a previous stock pick.

It's normal for stocks to go up and down in value. So they won't recommend to sell just because the price drops. It only happens if the stock downturns significantly and they are no longer confident in its performance for the long term.

Of course, it's still up to your judgment if you would like to follow their recommendations.

When Does Motley Fool Release Stock Picks?

You will receive one stock pick each on the first and third Thursday of each month straight to your inbox.

On the second and fourth Thursdays, you will receive 5 Best Buys Now picks. Some of these will be previous stock picks. But these still give you more stock ideas if you wish to expand your portfolio.

How to Get the Most out of Stock Advisor

Here are some tips to use Stock Advisor wisely so you have the best chance of success.

Hold for at least 5 years
Motley Fool focuses on a long term investment strategy. They picks stocks with high growth potential. So you need to hold them for several years to let them reach their potential.

Invest an equal amount into each stock pick
This diversifies your portfolio. You don't know which stock recommendation will be a mega winner, so invest into each equally. For example, if you invest $1,000 each month, you'd put $500 into each of the 2 monthly picks.

Be ready to buy on Thursdays
It's best to buy as soon as the Motley Fool stock picks come out. Stock prices can go up quickly in just a couple of days, or even hours. Have the cash ready in your brokerage account so you can make the purchase quickly.

Leave emotions outs
It's normal for growth stocks to swing wildly in the short term. If you see a decline, don't panic and sell it right away, thinking it's a loser. Give it time to recover and grow.

Listen to their sell recommendations
Motley Fool doesn't advise to sell carelessly. So if they issue a sell recommendation, they really believe that the stock is a loser and your money is better off elsewhere.

Does Motley Fool Stock Advisor have an app?
Motley Fool Stock Advisor does not currently have an app. Motley Fool only has one app, TMF Backstage, which is a companion to their premium Backstage membership.

Is Motley Fool Worth It?

For $99, the Motley Fool Stock Advisor subscription is certainly worth it if you want to save time and stress. There is a very high chance that you will earn more than $99 back in returns. So yes, Stock Advisor is well worth the price.

If you're a new investor, you may feel totally lost on what to buy. It takes years of experience and research to get a feel for how to pick good stocks. With Motley Fool, you can just buy their picks until you have a diversified stock portfolio.

You could just get it for 1 year and end up with 24 stocks for your portfolio. But even at $199/year afterwards, it's worth it since their picks have the potential for high growth.

Motley Fool's stock recommendations have proven to beat average stock market returns. And for just $99 - $199 a year, it's much cheaper than getting a financial advisor.

Motley Fool Premium Services

Motley Fool offers several premium packages. If the Stock Advisor program isn't for you, see if one of these subscriptions fits your financial goals.

The annual subscription fees vary greatly, from $149/year to $1999/year, depending on the service. Here are just some of their more popular services along with the current prices.

SubscriptionCostCurrent Discounts
Stock Advisor$199/yr
Rule Breakers$299/yr
Discovery: Everlasting Stocks$299/yr
Rule your Retirement$149/yr
Discovery: Everlasting Portfolio$2,999/yr
Discovery: 10x$1,999/yr
Motley Fool Options$999/yr

  • "Rule Breakers", $299/year
    This subscription gets you two stock recommendations each month and five "buy now" stocks, all selected from their universe of high-growth stocks.

  • "Everlasting Stocks", $299/year
    Unlike Stock Advisor, this subscription advises you on how to fit the stocks into a balanced portfolio.

  • "Rule Your Retirement", $149/year
    This subscription aims to help the upcoming retiree with not only investing but also maximizing their Social Security benefits

  • "Everlasting 10x", $1,999/year
    This package promises to search only for stocks with the most potential to return 1,000% or more.

  • "Motley Fool Options", $999/year
    This service aims to take advantage of simple, profitable options strategies.

And there are plenty of additional subscriptions to choose from apart from the ones listed here. See all Motley Fool services here.

What does Reddit think about Motley Fool's Everlasting Portfolio?
Reddit users have generally favorable opinions of Motley Fool's stock picks and their Everlasting Portfolio. One user using the service noted that his portfolio was outperforming the S&P. Another commented on how Tom's stock picks tend to be stable companies, whereas David picks more exciting prospects.

Customer Service

Motley Fool is generally easy to reach and tries to do right by their customers, as evidenced by their 30-day money-back guarantee for anyone not happy with their stock picks.

For any questions you don't see on the FAQ section of their website, you can contact them in the following ways:

  • Phone support: Call (888) 665-3665 during normal business hours (9:30 AM-4PM EST, Mon-Fri)

  • Email support: Send an email anytime to membersupport@fool.com

  • Online support: Submit a ticket via this online form

Customer Complaints
The biggest complaint we've seen in reviews is that Motley Fool is always trying to upsell their customers on newer, more expensive subscription packages.

Motley Fool Stock Advisor vs. Morningstar

It's always important to compare a service to its competitors. One popular service competing with Motley Fool is Morningstar Premium.

Morningstar is probably best known for its 5-star rating system for mutual funds and ETFs, but it has recently expanded this to individual stocks as well.

For the same price as "Stock Advisor" ($199/yr.), you can get a subscription to Morningstar Premium, giving you access to their vast library of research on mutual funds, ETFs, and stocks prepared by more than 150 of their professional research analysts.

You also get access to Morningstar's portfolio research tools, such as their stock, ETF, and mutual fund screener to filter investments based on dozens of helpful criteria.

Motley Fool's Stock Advisor is for those who want specific stock recommendations for their portfolio.

Morningstar Premium is better suited for the well-rounded investor who is looking for the tools to build a diversified portfolio of not only great stocks, but also great mutual funds and top ETFs.

Which stock advisor program is the best?
Morningstar Premium is best for guidance building a well-rounded, diversified portfolio. Motley Fool's subscription service is better for those only looking for a handful of "top stocks" to add to an existing portfolio each month.

Bottom Line

Motley Fool is one of the best value stock picking services with strong past performance. The Motley Fool stock picks in aggregate have beaten the overall stock market since their service began in 2002 and in the past five years.

This doesn't guarantee that they will continue to generate strong returns, but it does suggest that they at least have some skill in identifying winners. Their library of educational content and real-time stock alerts can also provide you with some guidance as you take advantage of their recommendations.

The Motley Fool service is good for both new and experienced investors looking for new companies to add to their portfolio. Just remember that you should hold them for at least 5 years to get the most out of it.

Pricing, fees, and performance information as of August 9, 2022.

Motley Fool

$89/year for Stock Advisor for New Members

*55% discount based on $199/year list price. Introductory promotion for new members only. Membership will automatically renew at then current list price.

Ally Invest Coupon Codes

Get Up to $3,000

Expires 5/31/2023

The minimum qualifying deposit to receive a cash bonus is $10,000. Accounts will be reviewed 60 days after account opening to determine the total qualifying deposit. Corresponding cash bonus will be credited to the account within 10 business days. Once the bonus is credited to the account, the bonus and qualifying deposit (minus any trading losses) is not available for withdrawal for 300 days. If the qualifying deposit is withdrawn, the bonus may be revoked.

Deposit or TransferCash Bonus
$10,000 - $24,999$100
$25,000 - $99,999$250
$100,000 - $249,999$300
$250,000 - $499,999$600
$500,000 - $999,999$1,200
$1,000,000 - $1,999,999$2,000
$2,000,000+$3,000

Write to Andrew Fitzgerald at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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