Does Motley fool do any investing on someone's behalf based on their recommendations? Can investing be done by someone on their website based on their recommendations?
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2Once, the Motley Fool used to be decently informational, but of late they are intensely promotional. I see nothing they could do for you that any random full-service broker couldn't do for you. I can't believe I'm actually giving this as advice, but walk into your local Edward Jones and you'll do at least as well (that's not saying much).– Harper - Reinstate MonicaApr 19, 2019 at 16:21
2 Answers
Motley Fool is a hit and a miss. My sincere recommendation is to not follow any one agent/website blindly, esp if you haven't retained a personal advisor who looks out for you.
Motley Fool periodically sends out emails/notifications claiming that they know that this one stock is about to pop/rise exponentially. Take those with a pinch of salt. I have invested in 4 such penny stocks. All of them rose a little (enough to keep you in) but would drop down just a little too. And then you'd keep waiting for it to go past a 'resistance point' that Motley Fool will keep claiming about.
I did make a 80% profit off 1 of those, and overall I may have made $200 more with all those 4 stocks taken together. If you are trying to learn strategies to identify good stocks and indicators for market movements and general strategies, you could use the reasoning behind their recommendations. For ex: 3 years ago or more they said Lithium mining stocks would do well. True to that stocks like ALBE, FMC etc did well but those exact stocks that they recommended may or may not have.
Again, learn the approach/strategy but unless you are okay with losing some money as part of learning, don't invest in those exact penny stocks as a guarantee.
PS: Their stock advice section doesn't give me any confidence. It is a typical "we never go wrong", "for $19 a month you get advice worth millions and so how could one lose?" It is consistent with my opinion of them based on what I said above.
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1Those stocks 'rise a bit' because enough people follow the advise to buy them. It's called a self-fulfilling prophecy.– AganjuApr 29, 2019 at 1:53
Recently Motley Fool created two exchange traded fund (ETF)
Motley Fool 100 Index ETF (TMFC)
TMFC tracks an index of 100 of the largest US companies identified by any of the Motley Fool publications, including the top companies in the Motley Fool IQ Database
Motley Fool Small-Cap Growth ETF (MFMS)
The Motley Fool Small-Cap Growth ETF (MFMS) tends to focus on high-quality companies that have strong competitive advantages, reasonable levels of leverage and strong free cash flows, according to the prospectus.
If you want to follow the investing advice of the Motley Fool team you could consider one or both of those options.