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This content is for informational purposes only and is not intended to provide financial advice.
It’s no secret that Motley Fool is one of the premier stock investment platforms, but did you know that in the year of its inception, in 1994 by Tom and Dave Gardner, people didn’t take the service seriously (and the name didn’t help much). But it’s safe to say by now that Motley Fool is no joke, and has given investors some serious returns.
The platform offers two services – Motley Fool Stock Advisor and Rule Breakers. What’s the difference between the two, how do they compare, and which one is for you? Find all the answers below.
About the Two – Motley Fool Stock Advisor VS Rule Breakers
Motley Fool Stock Advisor
The Stock Advisor service is Motley Fool’s flagship service and its main representative. A lot of people choose Stock Advisor because of its track record (it outperformed the S&P 500 a few times), and it is the cheaper option. The securities analyzed for the flagship service are stocks and ETFs that are diversified across multiple sectors.
Stock Advisor compared to Rule Breakers is the less risky choice of investment. You get two new stock picks per month based on David Gardner and his team’s analysis. Aside from the two stock suggestions, you also get an additional five stocks that are “best buys”.
Dave Gardner’s analysis strategy identifies the best long-term investments, which is what makes Stock Advisor a little less risky. When you first sign up for Stock Advisor, the service gives you a roster of starter stocks that it believes every investor should have in their portfolio.
Motley Fool Rule Breakers
Motley Fool Rule Breakers is run by Tom’s team, and they focus more on finding companies that are “underdogs”. These companies have the potential for exponential future growth, and the Rule Breakers team finds them early for investors to get in on the ground floor.
With the Rule Breakers package, investors would get two stock picks per month, the monthly best buy stocks like Stock Advisor has, and more.
Because Rule Breakers’ stocks could have explosive growth, which means higher returns, it’s a riskier route to take. However, its performance since its inception is +187.5%, which also beats S&P 500’s +100.4%.
Platform Features Head-to-Head
The best way to understand which platform is better for you (or both), is to compare Motley Fool Stock Advisor VS Rule Breakers features.
The Cost
As said, Stock Advisor is the cheaper option at $199 per year, compared to Rule Breakers’ $299. But don’t worry, you get a discount for Motley Fool with our link here, and a Rule Breakers’ deal with our link here. Of course, you can also get both and get an even bigger deal.
The Investment Strategy
Both services have had excellent track records, but their investment strategies work a little differently. It can be said that Stock Advisor is a bit more diverse since it looks at all sectors of the market, while Rule Breakers focuses more on companies with high-growth potential. Because Rule Breakers is more aggressive, it’s riskier, but the returns of the two platforms are comparable, and both have beat out S&P 500.
The Performance
While the results are comparable, Stock Advisor has better performance. Stock Advisor’s average return is about 400%, which is amazing. One thing to keep in mind is Stock Advisor is mainly focused on long-term options, so you most likely won’t be realizing the enormous returns in a short period – patience is the key.
The results for Rule Breakers are closer to 200%, but keep in mind that it is a couple of years younger than its big brother.
Who Are the Services For?
Don’t just focus on the return data, because these services offer more than just lucrative stock picks.
Stock Advisor is our recommendation for beginners and it provides a great foundation for investors to build their portfolios. The volatility is also lower, which is attractive to risk-aversive investors. Not to mention, it is the cheaper flagship plan that has stellar historical performance. Stock Advisor also gets you access to investment resources offered on Motley Fool.
Rule Breakers is suggested for intermediate investors and on, although beginners can benefit as well. It is a higher risk, which makes some investors more tentative to take part in it. It also offers what Stock Advisor does, which is stock picks each month, best buys, starter stocks, and access to the knowledge base.
Imagine what you can gain from the two services if you bundle them together!
Conclusion
No one can argue with Motley Fool’s performance to date, and two of their most popular services are Rule Breakers and Stock Advisor. Are they worth the price each year? We definitely think so! Use our discount link for Motley Fool here and Rule Breakers here to get a deal and get started with your portfolio.
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