Take the 2-minute tour ×
Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It's 100% free, no registration required.

A while back I checked out The Motley Fool while doing some research on mutual funds. I found their educational content to be a great overview of what to look for and started exploring. While The Motley Fool has a lot of great content, I'm not entirely comfortable with their incessant up-selling.

They always so eager to tell me about some "insiders" stock of the day that they are sure is just about to explode tomorrow if only I will give them some of my valuable personal information. Is this a scam? Are they just using their legacy educational content to bait people into their premium services? Are their premium services even any good? The Motley Fool once had a fair amount of Internet street cred.

Are The Motley Fool's stock picks and services worth giving any mind share to or are they just another Jim Cramer loudly shouting ticker symbols to sell advertisements?

share|improve this question
1  
Realise that if they have so much geniune insider information, how come they still do research and publish rather than becoming an investment firm. Getting insider information isn't that easy. –  DumbCoder Feb 17 '11 at 10:14
1  
Actually, they are doing mutual funds now. –  fennec Feb 17 '11 at 21:09
11  
Those who know don't tell. Those who tell don't know. –  Greg Feb 19 '11 at 3:59
    
Years ago, I started a trial subscription to one of their newsletters and then cancelled. During the following months, they advertised the subscription to me for lesser and lesser fees until I finally bought a subscription at the reduced price for educational purposes, even though I had no money at all to invest at the time. –  Rice Flour Cookies Feb 20 '12 at 23:00
    
Can you buy stock in the Motley Fool? Usually, the people that sell the tools make the most money vs the people out there that are digging holes looking for gold with the tools. –  Phil Mar 5 at 16:23
add comment

6 Answers

up vote 23 down vote accepted

The Motley Fool is generally regarded as relatively legit, at least in that they're not likely to do anything outright fraudulent and they definitely have reasonably in-depth content to provide you.

The Motley Fool makes a fair amount of money off the subscriptions, though, and they do hawk them quite violently. If I didn't have a generally good opinion of them to begin with, I'd have been completely put off as well. It's pretty shameful.

I don't think it's worth hundreds of dollars a year, but then again, I don't look at investing as a second career like the Fool likes to suggest, either.

share|improve this answer
1  
I agree with fennec on this. I visit Motley Fool regularly and like their analysis of things. It tends to be reasonable and hype free (though there are exceptions, there are far fewer than other places). I have not bought any of their paid content and unless you have a bunch of money riding on it, it may not be cost effective (you may not get the money you paid back in increased investment returns). –  chrisfs Feb 17 '11 at 10:28
add comment

Upselling you is how they make money. That's the price of the free content.

Test their recommendations. Pretend to buy the stocks they say. How do they do? Do they ever say to sell the stocks after their buy recommendations?

There are lots and lots of opinions out there. I doubt people really hear about the good ones because (a) the good ones have paid newsletters and/or (b) the good ones aren't telling a soul because they're absolutely cleaning it up.

Warren Buffett doesn't announce his intentions. He's been buying for a while before anyone finds out.

share|improve this answer
add comment

Hmm.. hey bro, not personal, but is what comes to mind:

"Only a fool follow other fool, and market is full of both."

I guess my answer will be highly down voted... =P

share|improve this answer
add comment

I've had a MF Stock Advisor for 7 or 8 years now, and I've belong to Supernova for a couple of years. I also have money in one of their mutual funds.

"The Fool" has a lot of very good educational information available, especially for people who are new to investing. Many people do not understand that Wall Street is in the business of making money for Wall Street, not making money for investors.

I have stayed with the Fool because their philosophy aligns with my personal investment philosophy. I look at the Stock Advisor picks; sometimes I buy them, sometimes I don't, but the analysis is very good. They also have been good at tracking their picks over time, and writing updates when specific stocks drop a certain amount. With their help, I've assembled a portfolio that I don't have to spend too much time managing, and have done pretty well from a return perspective.

Stock Advisor also has a good set of forums where you can interact with other investors.

In summary, the view from the inside has been pretty good.

From the outside, I think their marketing is a reflection of the fact that most people aren't very interested in a rational & conservative approach to investing in the stock market, so MF chooses to go for an approach that gets more traffic. I'm not particularly excited about it, but I'm sure they've done AB testing and have figured out what way works the best.

I think that they have had money-back guarantees on some of their programs in the past, so you could try them out risk free. Not sure if those are still around.

share|improve this answer
add comment

Not sure how I came across the Motley Fool blog in the first instance, but found the writing style refreshing - then along came some free advice on ASX share prospects, then the next day and email expounding the benefits I would get by joining up for two years at 60% off if I hit the button "now", getting in at ground floor on the next technology stock rocket - I replied:

"What a hard sell - why wouldn't I apply the age old adage of " If it sounds too good to be true, it probably is"

Their reply was;

"Thanks for your note. The honest answer is that despite people knowing they should do something to help themselves prepare for their financial futures, few actually do it. We find these messages actually work in getting people to hit 'yes', much better than an understated email that just says 'here are our results and our philosophy - let us know if you're interested', unfortunately.

Yours Foolishly"

So I have put some of these recommendations onto a watch list, time will tell.

share|improve this answer
add comment

I would personally beware of the Motley Fool. Their success is based largely on their original investment strategy book. It had a lot of good advice in it, but it pushed a strategy called "The Foolish Four" which was an investing strategy.

Since it was based on a buy-and-hold method with 18-month evaluation intervals, it was not a get-rich-quick scheme. However, its methods were validated through data mining and subsequently turned out to be not so good.

At least they admit this: http://www.fool.com/ddow/2000/ddow001214.htm

share|improve this answer
add comment

protected by MrChrister Mar 8 at 1:21

Thank you for your interest in this question. Because it has attracted low-quality answers, posting an answer now requires 10 reputation on this site.

Would you like to answer one of these unanswered questions instead?

Not the answer you're looking for? Browse other questions tagged or ask your own question.