For some investors, picking individual stocks is part of building a successful portfolio. However, deciding which stocks to add to the portfolio can be a challenge.
The Motley Fool is one of the most successful investing websites and offers different newsletter choices for helping you identify promising stocks to invest in. Two of the choices, Stock Advisor and Rules Breakers, can provide you with helpful insights and ideas. Here's what you need to know about Motley Fool Stock Advisor vs. Rule Breakers.
In this Comparison:
Motley Fool Stock Advisor vs. Rule Breakers Overview
Both Stock Advisor and Rule Breakers are published by The Motley Fool, which was founded by brothers Tom and David Gardner. Both newsletters claim that their picks far exceed the regular returns of the market, so the theory is that if you add the picks from these newsletters to your portfolio, you're likely to see good results.
About Stock Advisor
Tom and David have slightly different styles when analyzing and picking stocks, and their teams recommend stocks accordingly. Tom takes a more concrete approach, using fundamental analysis. While David's picks also rely on data analysis, he also uses intangibles that are a bit less rigorous and based more on a gut feeling.
About Rule Breakers
How Motley Fool Rule Breakers vs. Stock Advisor Work
Both of these newsletters are from The Motley Fool and rely heavily on the personalities of the founders of the company.
How Motley Fool Rule Breakers Works
Basically, David Gardner and a team of analysts try to identify stocks that have some sort of “it” factor — a distinct competitive advantage — that could propel them to high growth even if it seems like there's something a bit off with the fundamentals of the company. The newsletter makes recommendations and if you choose to go along with those recommendations, you could potentially see big gains.
Picks from Rule Breakers, according to The Motley Fool, are up 301% since it started in 2004, as of May 17, 2021. However, it's important to note that even though there's a high potential for growth, there could also be a high potential for loss. Rule Breakers stocks don't always perform as well as expected. On the other hand, the successes might make up for the failures.
How Motley Fool Stock Advisor Works
Both Tom and David Gardner make recommendations in this newsletter. Tom's style of fundamental analysis tends to lean toward value stocks and those that are likely to provide long-term returns that are a little more stable. Once again, for this newsletter, David is more likely to recommend stocks that are a little less conventional but could be poised for a breakout.
Since its start in 2002, according to The Motley Fool, Stock Advisor picks have returned 551%, as of May 17, 2021.
Unique Features of Motley Fool Stock Advisor vs. Rule Breakers
Both of these newsletters are about picking stocks, and they come from the same source, The Motley Fool.
How Are They the Same?
- The focus is on individual stocks and recommendations for specific stocks to add to your portfolio.
- You can find out about different types of analysis and learn the decision-making process behind each.
- Both consistently beat market performance over time.
How Are They Different?
- Uses picks from both Tom and David Gardner.
- Focuses on more conventional stocks.
- Looks for stocks that should be held for at least five years.
- Only uses picks from David Gardner and his team of analysts.
- Focuses on companies that are counterintuitive but could win big.
- Offers a list of stocks for starting a portfolio.
Pricing and Plans
- Stock Advisor: $199 per year ($99 for the first year)
- Rule Breakers: $299 per year ($99 for the first year)
Both newsletters have access to The Motley Fool customer service. This is available through email, as well as offering phone support 9 A.M. to 5 P.M., Eastern Time, Monday through Friday.
Who Are The Best For?
In general, Rule Breakers is ideal for those who are looking to add big winners to their portfolios. With Rule Breakers, you're going to get more sell recommendations, as well as the buy recommendations, because at some point you'll need to unload your stocks. You might consider Rule Breakers if you have a higher risk tolerance since some of the picks might not perform as expected.
On the other hand, Stock Advisor can be a good choice for someone who wants to build a portfolio with individual stocks but is looking to buy and hold companies. Stock Advisor is also aimed more at those who are interested in value stocks.
However, you can subscribe to both and get access to different ideas for different areas of your portfolio.
Alternatives to Motley Fool Rule Breakers and Stock Advisor
1. Zacks Investment Research
Find out the differences between The Motley Fool vs. Zacks Investment Research in our review.
2. The Street
Find out the differences between The Motley Fool vs. Action Alerts PLUS in our review.
3. Investor's Business Daily (IBD)
You can find out more about the Motley Fool vs. IBD in our review.
4. Seeking Alpha
You can find out more about the Motley Fool vs. Seeking Alpha in our review.
Bottom Line: Which Is the Best?
In the end, what works best for you depends on your investing goals, risk tolerance, and the way you build your portfolio. Both of these newsletters are offered by The Motley Fool, which has a long track record of finding winners, whether it's with high-growth picks or with longer-term buy-and-hold picks. Figure out what you want to accomplish with your portfolio and choose the newsletter that's best for you.