Investing in individual stocks can be very lucrative, but only if you make the correct stock picks. Analyzing stocks on all the important metrics is extremely time-consuming and takes a significant amount of knowledge about the stock market.
To help point you in the right direction, we suggest you consider stock picks from some of the most reputable stock investing services. Of note, Motley Fool picks have a history of vastly outperforming the stock market.
But should investors subscribe to the Motley Fool Rule Breakers service or Stock Advisor one? And just as importantly: Is Motley Fool legitimate?
This Stock Advisor and Rule Breakers review will provide you with information to answer these questions and help you determine which Motley Fool stock picks service is the better fit for you.
And if neither Motley Fool product meshes with your preferred investment strategy, that’s OK. Because we’ll highlight additional stock recommendation service options at the end of the article.
What Are the Motley Fool Newsletter Subscriptions?
Motley Fool is a well-known and widely trusted investing recommendations company. They provide a variety of investment services, with two of the most popular being their Rule Breakers and Stock Advisor newsletters.
While both of these Motley Fool newsletters email two new stock recommendations each month and have excellent track records of beating the S&P 500 (by far), there are key differences between them.
Stock Advisor concentrates on safer, established companies. In contrast, Motley Fool Rule Breakers picks stocks that are more volatile, but also have high growth potential.
Some investors choose whichever newsletter fits better with their investing style, while others subscribe to both.
The sections below go into detail about each newsletter subscription, how the picks are chosen, how they perform, costs, and more.
Related: 15 Best Stock Market Investing Research & Analysis Sites
Motley Fool Stock Advisor Overview
- Available: Sign up here
- Price: Discounted rate for the first year (shown below), $199 annually thereafter
David Gardner began an investment newsletter in 1993 and was soon joined by his brother Tom. In August 1994, they formed Motley Fool.
The website has free informational content, but not the stock recommendations offered from the premium services run by the company. To see those, you need a subscription to one of their stock-picking services, such as Rule Breakers and Stock Advisor.
Motley Fool Stock Advisor is their flagship stock picking service, which began in 2002.
The stocks they choose are often well-known, not too volatile, predicted to beat the stock market, and are meant to be held for at least five years.
The service recommends buying and holding a minimum of 25 stocks as part of a diversified portfolio of stocks. (Using other investment strategies outside of the market can further diversify your returns.)
Stock Advisor does all the grunt work of researching stocks for you so you know exactly what to buy.
They even begin your subscription with a shortlisting of what they term, “Starter Stocks,” or companies they believe represent the best stocks to own as part of the foundation of your portfolio.
Selection Criteria
The Stock Advisor and Rule Breakers investment newsletters provide monthly stock picks from two investing teams: Team Everlasting and Team Rule Breakers.
The Stock Advisor newsletter relies on both Team Everlasting stocks and Team Rule Breakers stocks. Per Motley Fool, Team Everlasting looks for:
- “High-quality companies that have the sustained potential to keep growing and beat the overall market over extremely long periods”
- “Founder-led companies”
- “Companies employing a strong corporate culture”
- “Businesses that have built a strong enough bond with their customers that they command substantial pricing power and have identifiable proprietary advantages”
- “Cash-rich, low-debt companies”
And Team Rule Breakers looks for:
- “First-mover companies in emerging, but important industries that have become the top dogs in their niches”
- “Companies with sustainable competitive advantages”
- “Sizable past increases in share prices”
- “Companies with good management teams”
- “Businesses with strong consumer appeal that have built up brand awareness”
- “Stocks that are grossly overvalued according to mainstream financial media sources”
Stock Advisor Performance
The Motley Fool Stock Advisor stock picks have performed exceptionally well over their 20 year existence. The company has made 175 stock recommendations that have delivered 100%+ returns, multiplying members’ net worth.
Since inception in 2002, the service has enjoyed a return of 671% when you calculate the average returns of all of their stock recommendations through April 8, 2024.
Comparatively, the S&P 500 only had a 152% return during that same timeframe. Motley Fool’s solid track record should instill trust in potential users looking for a stock recommendations subscription service.
Stock Advisor Stock Picks
Amazon
David Gardner bought Amazon (AMZN) all the way back in September 1997—before the Motley Fool Stock Advisor investment newsletter ever existed! A few years later, in 2002, Stock Advisor got off the ground, and in September of that year, the service recommended AMZN shares to readers.
What once was an online bookstore has evolved into an everything store, completely upending the entire retail industry and bulldozing numerous brick-and-mortar competitors. Of course, Amazon is much more than a store now, too—it’s a digital streaming video provider, a smartspeaker and tech device maker, and the world’s largest cloud service provider.
All of this has sent AMZN shares rocketing by more than 23,500% since Stock Advisor’s original recommendation through April 29, 2024.
Walt Disney
Walt Disney (DIS) went public decades ago, back in 1957. Since then, it has grown to become one of the world’s largest entertainment conglomerates, spanning TV, movies, theme parks, toys, and more. Disney isn’t just Disney: It’s ESPN, Marvel, Star Wars, Pixar, and a number of other top-flight brand names.
Disney shares have benefited investors for ages, but they started contributing to Stock Advisor members’ growth on June 7, 2002, when DIS debuted as a Fool recommendation. Since then, through April 29, 2024, shares have produced a return of more than 6,100%!
Netflix
Netflix (NFLX) went public on May 23, 2002, at $15 per share. Less than two years later, after shares more than quadrupled, NFLX split its stock for the first time, 2-for-1. In December 2004, Motley Fool’s David Gardner recommended investors buy Netflix, even though it was a small-cap stock that had lost more than two-thirds of its value from its 52-week highs.
Less than a year after the recommendation, the stock doubled. And ever since Stock Advisor’s recommendation, shares have exploded higher—up more than 30,000% as of April 29, 2024!
What to Expect From Stock Advisor:
The Motley Fool Stock Advisor stock picking service provides a lot of worthwhile resources to subscribers:
- “Starter Stocks” recommendations to serve as a foundation to your portfolio for new and experienced investors
- Two new stock picks each month
- 10 “Best Buys Now” chosen from over 300 stocks the service watches
- Investing resources with the stock picking service’s library of stock recommendations
- Access to community of investors engaged in outperforming the market and talking shop
The Stock Advisor stock picking service offers discounted introductory rates to new users. The Stock Advisor discount varies, but it comes at a substantially lower price than current subscribers pay for renewing their membership.
And all Stock Advisor subscriptions come with a full membership-fee back guarantee.
Read more in our Motley Fool Stock Advisor review.
- Motley Fool Stock Advisor is a stock service that provides recommendations for both "steady Eddie" and high-flying stocks, as well as a few ETFs for investors who want diversified holdings, too.
- Just getting started? Stock Advisor provides 10 "Foundational Stocks" you can use to anchor your portfolio.
- You're not alone! Stock Advisor membership also gives you access to a community of investors who also want to outperform the market and love talking shop.
- Enjoy access to GamePlan: Motley Fool's financial planning hub, which includes advice on personal finances, taxes, retirement, and more, as well as calculators and other financial tools.
- Limited-Time Offer: Get your first year with Stock Advisor for $99 (vs. $199 usual value)—a 50% discount for new members!
- Discounted introductory price
- Strong outperformance above S&P 500
- High overall average return for stock picks
- High renewal price
- Not every stock is a winner
Now, on to our Rule Breakers review.
Motley Fool Rule Breakers Overview
Motley Fool Rule Breakers focuses on stocks that the Rule Breakers team believes have massive growth potential in emerging industries. This stock subscription service isn’t fixating on what’s currently popular, but rather always looking for the next big stock.
Looking for upcoming industry leaders means these Motley Fool picks have the potential to increase in value exponentially.
For example, Rule Breakers saw the power of e-commerce before many others. Current emerging industries include blockchain technology, robotics, artificial intelligence, and more. Given this investment focus for Rule Breakers picks, the selections favor growth stocks more so than dividend stocks.
Rule Breakers does the legwork for investors and makes it easy to adjust portfolios in just a few minutes per month.
Selection Criteria
The Motley Fool Rule Breakers portfolio follows over 200 companies and has six rules they follow before making stock recommendations to subscribers:
- Only invest in “top dog” companies in an emerging industry – As Motley Fool puts it: “It doesn’t matter if you’re the big player in floppy drives — the industry is falling apart.”
- The company must have a sustainable advantage
- Company must have strong past price appreciation
- Company needs to have strong and competent management
- There must be strong consumer appeal
- Financial media must overvalue the company
As you can see, before recommending a stock to users, Rule Breakers considers a number of factors. In short, the service mainly looks for well-run companies in emerging industries with a sustainable advantage gained over competitors, among other factors.
And their rules seem to pay off if their results have anything to say about it.
Rule Breakers Performance
Since inception in 2004, Rule Breakers has more than doubled the S&P 500, beating many leading money managers on Wall Street. They’ve recommended 131 stocks with 100%+ returns.
Rule Breakers Stock Picks
MercadoLibre
MercadoLibre (MELI) is a Latin American e-commerce giant, with operations in North, Central, and South America. Its various services include the Mercado Libre marketplace that allows people to list and sell items; Mercado Envios shipping solutions; classifieds and advertising; and Mercado Pago payments solutions, which include mobile point-of-sale, digital wallets, prepaid cards, and more.
The company was founded in 1999 and went public in August 2007 at $18 per share. Rule Breakers eventually recommended the stock in September 2015. It was one of David Gardner’s original themed “five-stock samplers,” and through Dec. 7, 2023, it has gone up by more than 10,515% since entering the portfolio.
Shopify
One e-commerce name that Rule Breakers jumped on top of is Shopify (SHOP), a Canadian outfit that serves as the backbone for millions of businesses worldwide. It allows companies to build online storefronts, but also offers other products such as marketing tools and point-of-sale systems.
Shopify went public in May 2015 at $17 per share, and has since split its stock once—a 10-for-1 split in 2022. Through Dec. 7, 2023, Rule Breakers readers have enjoyed 3,315%-plus gains in SHOP shares since the service recommended them in February 2016.
Tesla
Electric vehicle manufacturer Tesla (TSLA) went public on June 29, 2010, at a mere $17 per share—or $1.13 per share once you account for its 5-for-1 and 3-for-1 stock splits of the past few years. Today, it trades for several hundred dollars per share, and has made many investors a boatload of money.
There are probably at least a few Motley Fool readers in that crowd. Rule Breakers first recommended Tesla on Nov. 11, 2011—a year before the Model S hit the road, and years before the Model 3 or Model X. Since then, shares have produced a return of nearly 11,273% through Dec. 7, 2023!
What to Expect From Rule Breakers:
The service includes three primary items you can expect to receive:
- A listing of Starter Stocks to begin your Rule Breakers journey with their “essential Rule Breakers”
- 5 “Best Buys Now” opportunities each month
- Two new stock picks each month
You’ll receive regular communications from the stock picking service with their analysis and rationales for buying stocks meeting their investment criteria.
If you’re unhappy with the Motley Fool Rule Breakers service within the first month, you have a full membership-fee back guarantee.
Read more in our Motley Fool Rule Breakers review.
- Motley Fool Rule Breakers, which is now an exclusive part of Motley Fool Epic, puts investors in the heart of innovation, focusing on growth recommendations centered around emerging industries.
- The Motley Fool has discontinued the standalone Rule Breakers service. Now, you can access Rule Breakers as part of Motley Fool's Epic subscription, which also includes Stock Advisor, Hidden Gems, Dividend Investor.
- Through Epic, you will also enjoy access to the Fool IQ+ research and data platform, the GamePlan+ financial planning platform, and the Epic Opportunities podcast.
- Limited-Time Offer: Get your first year with the Epic for $300 (vs. $499 usual value)—a 40% discount for new members!*
- Discounted introductory price
- Strong outperformance compared to the S&P 500
- High overall average return for stock picks
- Diversified array of recommendations for investors targeting growth, income, or both
- Additional value from GamePlan+ financial planning content and tools
- High-growth stocks carry volatility
- High renewal price
- Not every stock has positive returns
Related: 8 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers]
Motley Fool Rule Breakers vs Stock Advisor
Now that we know a bit about each service individually, let’s see how they stack up head-to-head.
Different Inception Dates
The Stock Advisor service came on the scene in 2002. Motley Fool Rule Breakers began in 2004.
Returns vs. S&P 500 Since Inception
Stock Advisor has more than tripled the S&P 500 over the past two decades. Whereas the S&P 500 is up 133%, Stock Advisor picks are up 671%. And 175 of its stock recommendations have delivered 100%+ returns.
Rule Breakers, meanwhile, has returned over 245%. The service’s stock picks have clobbered the market over the last 19 years, more than doubling the S&P 500’s performance over that time.
Both services have greatly outrun the S&P 500, though Stock Advisor has come out ahead of Rule Breakers.
Screening Criteria
The main difference between Motley Fool’s flagship stock picking services is the type of stock pick recommendations.
Stock Advisor primarily recommends well-established companies. Over a decade ago, they advised subscribers to buy companies such as Netflix and Disney, which have been majorly successful.
Motley Fool Rule Breakers focuses on stocks that they believe have massive growth potential in emerging industries. In other words, riskier picks which theoretically have more upside.
A Stock Advisor subscription is better for the following:
- Beginner investors interested in building portfolios of stock investments
- Stock picking based on fundamental analysis
- Investors with moderate risk appetite
- Market-beating returns (over long periods)
- Broader sector selection for investment picks
A Rule Breakers subscription is better for the following:
- More experienced investors (more sophistication and risk-tolerance)
- Growth-oriented stocks with strong consumer appeal
- Greater reliance on momentum and growth stocks
- Looking for standout stocks likely to be tomorrow’s stock market leaders
- Preference for new technologies (e.g., SaaS, Cloud-based applications, etc.)
Subscription Cost
The Stock Advisor service regularly costs $199 per year and new members can often get the first year for a discounted rate. There is a 30-day money-back guarantee.
Motley Fool Rule Breakers regularly costs $299 per year, but you can get your first year for a discounted rate as well.
Like Stock Advisor, if you don’t like Rule Breakers within the first 30 days and want to cancel, you can get your membership fee back.
Number of Stocks Covered
Stock Advisor: Over 300
Rule Breakers: Over 200
Motley Fool Invests Its Own Money in Both Sets of Stock Picks
Sometimes, Motley Fool chooses to invest its own money in its monthly stock recommendations.
These monthly stock picks fall into what Motley Fool calls a Real Money Portfolio. For picks not purchased with Motley Fool’s own money, they fall into their Model Portfolio.
- Real Money Portfolio. Motley Fool team invests its own money in the listed stock recommendations made by the portfolio service.
- Model Portfolio. Motley Fool doesn’t invest its own money in these recommendations, however Motley Fool offers allocation guidance to members including examples of how to balance your money across the investment recommendations.
Which Should You Pick? Rule Breakers vs Stock Advisor?
So which Motley Fool stock investing service should you pick? That depends on your investing experience and risk tolerance.
If you’re a beginner or intermediate investor who wants to invest in high-quality, established companies, Stock Advisor might be for you. The service mainly uses fundamental analysis to pick which companies will continue to succeed. This is for people with a medium-level risk tolerance.
Motley Fool Rule Breakers is an excellent fit for investors willing to take on a bit riskier stock picks for higher reward potential. Rule Breakers focuses on high-growth stocks primed to be tomorrow’s leaders. This service is best for more experienced investors and those better able to tolerate volatility.
Both Motley Fool services have proven themselves to make great stock picks, so it’s just a matter of which fits your investment style better. Many investors subscribe to both Motley Fool plans.
Related: Best Investment Apps for Beginners
What Are Some Other Investment Advisory Services?
1. Seeking Alpha Premium
- Available: Sign up here
- Price: 7-day free trial, then $269/yr*.
Crowd-sourced investment content service Seeking Alpha was founded in 2004. The platform has millions of members who read diverse investing opinions from thousands of contributors.
While many of the articles are free, only Premium members can see the author’s ratings and the expert analyses.
In addition to articles, there are data visualizations, advanced charting, and both technical and fundamental analysis tools to help investors make informed decisions.
Seeking Alpha Premium has a vast variety of information and tools that allow investors to take a deep dive into stocks.
The platform provides a decade’s worth of financial statements, earnings call transcripts, author ratings, dividend & earnings forecasts, and much more.
Subscribers can compare up to six stocks or funds side by side, contrasting enterprise values, quant ratings, Wall Street ratings, quant factor grades, and many more factors.
Seeking Alpha Premium works best for intermediate and advanced investors. It’s great for both investors who want quick information and those who want to conduct in-depth research. Investors can try the service free for 7 days.
- Seeking Alpha has the world's largest investing community.
- Seeking Alpha Premium helps you find profitable investing ideas, improve your portfolio, research stocks better and faster as well as track the news to find investing opportunities.
- Receive up to 15 investing newsletters filled with stock research and analysis, commentary and recommendations.
- Use Seeking Alpha Premium's Seeking Alpha Stock Ratings to find stocks likely to outperform and make you money.
- Seeking Alpha Premium's proprietary quant records have an impressive track record leading to massive market outperformance.
- Special offer (Black Friday Sale!): New subscribers receive a $90 discount off the price of Seeking Alpha Premium in their first year.
- Active community of engaged investors and analysts
- Stock screeners, quantitative tools for stock analysis
- Strong track record of market outperformance on stock ratings
- Minimal mutual fund coverage
Related: 7 Best Seeking Alpha Alternatives [Competitors’ Sites to Use]
2. Zacks Premium Services
- Available: Sign up here
- Price: Premium: $249/year
Zacks Investment Research conducts independent investment research on stocks, emphasizing corporate earnings estimates. It was founded in 1978.
The service is very strong in sharing earnings per share (EPS) estimates and primarily uses quantitative models.
While Zacks provides some popular free content, such as Bull of the Day and Bear of the Day picks and earnings-per-share estimates, for the most valuable content, investors should sign up for Zacks Premium.
Zacks Premium provides you with stock pick lists, such as Zacks #1 Rank List, Zacks Ranks, Zacks Recommendations, and the Focus List portfolio.
These lists have varying timelines, so whether you’re looking for short-term, medium, or long-term holds, there is something for every investor.
Zacks Premium also has several tools that let investors filter for investments with the criteria that matter to them most.
Some of the most popular criteria include Zacks Rank, Zacks Industry Rank, Value Score, Growth Score, Momentum Score, VGM Score, and Earnings ESP. That is just a small sample of the many filters one can choose.
This service is available on a 30-day trial.
- Zacks Investment Research offers several research products to provide the information subscribers want to know about market opportunities
- Features include: Zacks #1 Rank List, Industry Rank List, Premium Screens, Focus List, Research Reports, Earnings ESP Filter, Zacks #5 Rank List
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