If you haven’t heard of Motley Fool and you invest in stocks, you might be living under a rock. Motley Fool is a leading investing advice company that helps all levels of investors choose stocks to invest in; it is owned and ran by two brothers- Tom and David Gardner. They do this through various services that are offered on their website.
To learn more about the company and offerings, jump over to this in-depth Motley Fool review covering all of their services.
The most prestigious and longest-running stock advisement service from Motley Fool is their Stock Advisor stock-picking subscription service. However, alongside this well-known service exists a service that offers similar benefits – Rule Breakers.
Motley Fool’s Rule Breakers is very similar to Stock Advisor. However, David Gardner is the one picking the stocks and making the recommendations. Throughout its existence, Rule Breakers has generated massive returns resulting in many successful and happy investors. In this article, we review each aspect of Motley Fool’s Rule Breakers, so read on to learn more.
Motley Fool Rule Breakers History
As stated earlier in this article, Rule Breakers is very similar to Motley Fool’s most well-known service, Stock Advisor. The main difference is the stock picks – Rule Breaker’s stocks are chosen by non-other David Gardner- one of Motley Fools founders and owners.
Rule Breakers was started in 2005, so it is a bit younger than its Stock Advisor sibling that began in 2002. However, Rule Breakers’ stock picks have generated over 310% growth since its inception, compared to S&P 500, which gained just over 200% for the same time period.
Rule Breakers specifically focuses on high-growth stocks, and a subscription will garner you the following:
- Investing resources
- Starter Stocks
- Two new stock picks per month
- Best buys now
- Access to new letters, reports, and articles
High-Growth Stock Picks
Motley Fool Rule Breakers stock picks have consistently beaten the market over the last 15 years. Their philosophy is to buy and hold stocks for at least five years. In fact, they state that your best chance to succeed is to invest in at least 15 stocks over five years. With this buy and hold method, you diversify your portfolio and set yourself up for building long-term wealth.
In general, Rule Breakers stock picks range from mid-cap to large-cap stocks, guaranteeing you are investing in solid companies.
It’s worth noting that Motley Fool is not a stockbroker; in other words, they are not a brokerage you can purchase stocks through- they only provide recommendations. To buy stocks, you can open accounts with large national brokerages like Fidelity, Vanguard, TD Ameritrade, etc., or use a more straightforward investing method like a robo-advisor.
There are many robo-advisors available. A top robo-advisor for single stock investing is M1 Finance- for more information, check out this full M1 Finance review.
Rule Breakers Stock Picks Returns
Rule Breaker’s fantastic track record has performed 3x more than the S&P 500 over the last 15 years. Meaning if you invested $10,000 in an S&P 500 fund and $10,000 in Rule Breakers stock picks, you would have 3x more money in the Rule Breakers portfolio: ~$45,000 for S&P 500 fund versus over $136,000 for Rule Breakers. That’s almost a $100,000 difference on a $10,000 initial investment!
You might be thinking; Rule Breakers must be hitting some home runs with their stock picks. Well, unsurprisingly, you are not wrong. They have over 170 stock recommendations that have yielded over 100% returns and many with multiple thousands of percent returns.
For example, here are some of Rule Breakers highest performing stock picks (since initial recommendation):
- Shopify: Nearly 5,000% return
- Tesla: Nearly 10,000% return
- Mercado Libre: Over 10,000% return
As you might have determined, Motley Fool’s stock picks are great additions to your stock portfolio. The fantastic rates of returns of Rule Breakers stock picks are enough for most investors to sign up for their service only. But that’s not all they offer!
Best Buys Now
Motley Fool’s Rule Breaker keeps a catalog of over 200 stocks and periodically will deliver five stocks to buy now. These five stocks are the picks they have determined to have significant, immediate forward momentum that you should “buy now” to capitalize on the gains that will likely be on the way.
Rule Breaker’s starter stocks are fantastic recommendations for beginning investors just starting out investing or are new to Motley Fool’s Rule Breakers subscription. The starter stocks are recommendations of solid, stable stocks that you can use to start your portfolio. Perhaps, given enough time and substantial initial investments, you may grow into a stock market millionaire.
Community and Investing Resources
Similar to Stock Advisor, Rule Breakers provides its subscribers with materials that help you learn about investing. These educational materials come from a fantastic worldwide team of investors to help you be a successful investor.
If you are a passive investor, all these resources may be too much for you; however, active investors generally cannot get enough of the materials provided. However, whether you’re a passive or active investor, Rule Breakers’ resources only help make you more knowledgeable.
The resources you gain access to are pretty helpful for investors just starting and experienced ones too. Here’s a highlight of some of the top resources:
- News and Updates– Subscribers get frequent articles delivered to keep them updated on market trends, financial data, earnings, analysis, guidance changes, retirement strategies, and more.
- Community forum– Subscribers can synch up with other investors- from advanced to beginner investors, they all contribute to the forum. It’s a great place to learn from others and ask questions.
- Reports– Reports provide financial data on stock picks, containing share prices, the company’s track record, and more analysis data allowing you to understand the company entirely. Some reports are even written by the founders themselves- Tom and David Gardner.
- My favorites– The favorites list in Rule Breakers allows you to keep track of all your favorite stock recommendations easily. That way, when you are ready to purchase them with your advanced robo-advisor or brokerage, you have an accessible reference page.
Motley Fool Rule Breakers Cost
Given all the value the Motley Fool’s Rule Breakers subscription service provides (remember – over 300% growth over 15 years), you might expect it to come with a hefty yearly fee. However, Rule Breakers only costs $299 per year. If you follow Motley Fool’s stock investing philosophy, you will surely make your subscription investment back in no time at all. Rule Breakers help novice investors build wealth, and seasoned investors dial-in their performance to higher levels.