Is Motley Fool Worth It? Putting Their Stock Picks to the Test

Summary

In this video, the presenter analyzes the value of the Motley Fool’s stock picks by comparing its paid Stock Advisor recommendations to free stock picks. By using data from 2017, they highlight the impressive returns of both free and paid recommendations, with paid picks outperforming the S&P 500 by nearly three times. Despite some criticism and skepticism around the Motley Fool, the results indicate significant success for those who followed their advice. The conclusion encourages viewers to consider both free and premium content but emphasizes the strong performance of the paid recommendations.

Takeaways

• 😀 The video is an experiment analyzing the effectiveness of The Motley Fool's stock picks, comparing paid and free content.
• 😀 The speaker has been a customer and follower of The Motley Fool for 3 years and is sharing their personal experience backed by historical data.
• 😀 The analysis involves comparing 24 paid stock picks from the Motley Fool’s Stock Advisor newsletter to 24 randomly selected free stock picks.
• 😀 The Motley Fool's free stock picks outperformed the S&P 500, with a 91.45% return since 2017 compared to the S&P 500's 75.65%.
• 😀 The paid Stock Advisor picks showed even stronger results, with an average return of 214.01%, nearly triple the S&P 500's performance.
• 😀 The Motley Fool’s free picks had mostly positive returns, with only a few losers, and the portfolio still outperformed the S&P 500.
• 😀 The paid Stock Advisor picks yielded significantly higher returns, including a 1,200% return on one stock, The Trade Desk.
• 😀 If you had followed the Motley Fool’s paid recommendations from 2017, you would have seen significantly higher returns compared to the S&P 500.
• 😀 The speaker concludes that the Motley Fool’s paid content is worth the investment due to its consistently better-than-market performance.
• 😀 The speaker advises using both free and paid content from The Motley Fool for stock research, but considers the premium service a great option for growth stocks.

Q & A

What is the main goal of the analysis in the video?

The main goal of the analysis is to evaluate whether the Motley Fool's paid stock picks are worth the investment compared to their free stock picks and the S&P 500 performance.

What comparison does the video make between the Motley Fool's stock picks and the S&P 500?

The video compares the returns of the Motley Fool's free and paid stock picks from 2017 to the S&P 500. The Motley Fool's free stock picks returned 91.45%, while the S&P 500 returned 75.65%. The paid stock picks outperformed, with a return of 214.01%, almost three times higher than the S&P 500.

How many stock picks were analyzed from the Motley Fool's service?

The analysis examined a total of 24 stock picks from the Motley Fool's Stock Advisor newsletter, which were recommended in 2017.

What was the overall return on the Motley Fool's free stock picks from 2017?

The overall return on the Motley Fool's free stock picks from 2017 was 91.45%, significantly outperforming the S&P 500's 75.65% return during the same period.

How did the Motley Fool's paid stock picks perform compared to their free picks?

The Motley Fool's paid stock picks performed better than their free picks, with a return of 214.01%, which is nearly triple the return of the S&P 500 since 2017.

What was the performance of the stock '3M' in the paid stock picks list?

The stock '3M' from the paid stock picks list was the only stock that showed a negative return, as indicated in the video.

What is the significance of the 1,200% return mentioned in the video?

The 1,200% return refers to the stock 'The Trade Desk', which provided an exceptional return on investment for those who followed the Motley Fool's advice back in 2017.

Why does the video mention that past performance does not guarantee future results?

The disclaimer that past performance does not guarantee future results is included to remind viewers that stock market performance can be unpredictable, and previous success doesn't ensure continued success.

What is the video's recommendation regarding the Motley Fool's free and paid content?

The video recommends paying attention to the Motley Fool's free content and integrating it into your research. Additionally, it suggests that subscribing to their premium stock picks could be a good idea for investors interested in growth stocks.

What is the overall conclusion of the video regarding the value of the Motley Fool's stock advice?

The overall conclusion is that the Motley Fool's stock picks, both free and paid, have consistently outperformed the market, making them a potentially valuable resource for investors, especially the premium stock picks.