Motley Fool Stock Advisor vs Motley Fool Rule Breakers 2024 (2024)

When David Gardner and Tom Gardner started The Motley Fool in 1994, people didn’t take it seriously. But for a firm still known for its elaborate annual April Fool’s Day jokes, investors are now making serious money from its investing newsletters.

The Motley Fool has earned its place as a reputable stock-picking service with a history of longevity. Its steady growth has led to an impressive base of over 750,000 paid subscribers. The service’s enduring success and consistent track record make it a reliable and trustworthy option for those interested in stock market investing.

For many people, the question is not if they should go with The Motley Fool but which of its subscriptions best serves their needs.

What is Motley Fool

The Motley Fool is a financial services company founded by brothers David and Tom Gardner in 1993. It’s widely recognized for its premium investment advisory services, which aim to demystify complex financial concepts and make investing accessible to the average person. The company provides a range of services, including investment newsletters, stock recommendations, and a vibrant online community of investors.

At its core, The Motley Fool is dedicated to helping individuals build wealth through smart investing. By offering detailed analysis, favorite stock picks, and portfolio guidance, the company empowers its subscribers to make informed investment decisions. Their services cater to both novice and experienced investors, providing insights into various market sectors and investment strategies.

With a philosophy rooted in long-term, value-driven investing, The Motley Fool has established a reputation for offering reliable and actionable investment guidance. Their recommendations often focus on companies with strong competitive advantages, sustainable business models, and potential for significant growth.

Through its blend of educational content and stock recommendations, The Motley Fool continues to be a trusted resource in the investment world.

The Motley Fool Newsletter Subscriptions

The Motley Fool offers a range of investment services, with their two most popular stock-picking services being Rule Breakers and Stock Advisor newsletters. Both of these investment newsletters send out two new stock recommendations every month and have a strong history of outperforming the S&P 500 by a significant margin.

In 2002 and 2004, The Motley Fool launched Stock Advisor and Rule Breakers. Both of these services focus on growth and have a long-term investment perspective, but there are some important differences between them that might affect which one is better suited to your particular investment objectives.

Stock Advisor focuses on more stable, well-established companies, while Rule Breakers looks for stocks that may be more volatile but also offer high growth prospects. Some investors opt for the newsletter that aligns more with their investing approach, while others choose to subscribe to both.

Let’s have a closer look at each of these newsletter services in detail.

Motley Fool Stock Advisor

Motley Fool Stock Advisor is their flagship premium investing stock-picking service, established in 2002. It has an incredible track record, especially compared to the The Motley Fool’s other current offerings. In fact, its average return has beaten the S&P 500 by four times since it started more than 20 years ago.

They typically recommend stocks that are fairly well-known, not overly volatile, and expected to outperform the market. These stocks are intended for long-term holdings of at least five years.

The service suggests maintaining a diversified stock portfolio, which should include at least 25 different stocks. (You can further diversify your returns by considering other investment strategies beyond the stock market.)

With Stock Advisor, the heavy lifting of stock research is done for you, making it easy to know what stocks to consider buying.

When you start your subscription, they provide a list of what they call “Starter Stocks,” which are companies that they believe form a strong foundation for your investment portfolio.”

Motley Fool Rule Breakers

Rule Breakers started at the end of 2004. While it initially struggled to beat the market, its market performance over time has doubled market averages.

Rule Breakers’ service centers on identifying stocks with significant growth potential in emerging industries. The Rule Breakers team doesn’t just focus on what’s popular now; they’re always on the lookout for the next big stock opportunity.

By seeking out future industry leaders, these Motley Fool selections have the potential to appreciate greatly in value.

For instance, Rule Breakers recognized the potential of e-commerce early on. They’re currently tracking emerging industries such as blockchain technology, robotics, and artificial intelligence. Given this investment approach, Rule Breakers tends to recommend growth stocks more than dividend stocks.

Rule Breakers simplifies the investment process by doing the research for you, making it easy to tweak your portfolio with just a few minutes of effort each month.

What to Expect

Both Motley Fool Stock Advisor and Rule Breakers follow a similar format in their operations and offerings.

Each service provides two new stock recommendations every month, accompanied by research reports and videos where the team’s analysts discuss the picks and occasionally answer questions. Typically, these releases also offer insights into the current market environment, giving you context for investing in the prevailing conditions.

They also offer timely stock recommendations each month, 10 for Stock Advisor and 5 for Rule Breakers. These stocks, formerly referred to as “Best Buy Now” stocks, represent the top choices from the current portfolio of recommendations for immediate investment.

This feature is particularly useful for new members who may have missed an important recommendation from a couple of months ago. If that recommendation gets featured again as a timely stock, it gives you a second chance to build a position in that stock.

Both services also recommend 10 foundational stocks, often updated quarterly, to help members construct a diversified portfolio.

Which of The Motley Fool individual stock picks services is best for you?

One reason to buy individual stocks is the belief that you can outperform the market. And if your goal is to beat the market and consistently increase your portfolio’s value, subscribing to one of The Motley Fool services, such as Stock Advisor or Rule Breakers, would be of great value to you. However, when deciding between Motley Fool’s Stock Advisor and Rule Breakers stock-picking services, it’s essential to consider your investment goals, risk tolerance, and investment horizon.

Stock Advisor is a good fit for:

• New investors looking to establish a solid foundation for their portfolios.
• Investors seeking a broader range of companies with moderate to high growth potential, not exclusively focusing on technology.
• Those looking for long-term returns.
• Investors aiming to grow their investing knowledge and experience.

On the other hand, Rule Breakers might be better suited for:

• Investors who already have established portfolios and are looking for potentially high-growth opportunities.
• Those interested in companies that are pioneers or innovators in their respective industries.
• Investors that are comfortable with market volatility.
• Those with an investment horizon of 5 to 15 years, willing to wait for their investments to potentially grow significantly.

It’s essential to select the service that aligns with your investing style and long-term goals.

Read on to find out which is best for you.

Annual Subscription Fees	Stock Advisor $199 ($79 for the first year with Modest Money)	$299
Securities Analyzed	Stocks, ETFs (over 300)	High-growth stocks (over 200)
Investment Strategies	Stocks across sectors to build a well-diversified portfolio, companies with a strong record of pricing power, good management, innovation, value stocks	High momentum, strong price appreciation, strong consumer appeal, top movers in new industries, emerging technologies stocks
Portfolio Diversification Score	A moderately diversified portfolio of high-performing stocks	Less diversified, stocks primarily clustered in emerging technology sectors
Performance	400+% returns since 2002	200+% returns since 2005
Best Use	Moderate Risk Investing	High Risk Investing
Current Promotion	More Info Use code SALE60 for 60% OFF on Motley Fool Stock Advisor [Exp 31/03/24]*Based on $199/year list price. Introductory promotion for new members only.	More Info
Modest Money Overall Rating	4.9 rating based on 5 ratings	4.5 rating based on 5 ratings

Stock Advisor vs Rule Breakers

As mentioned earlier, both Stock Advisor and Rule Breakers recommend two new stock picks per month to help you build your well-diversified stock portfolio. The way they work is slightly different, though, as well as the types of stocks they recommend. It’s not hard to figure out how to use Motley Fool Stock Advisor or Rule Breakers, as the user interface is pretty easy to understand.

Stock Advisor and Rule Breakers track very closely in terms of how they present information to subscribers, so we will mainly look at the comparative costs and strategies of these two subscriptions. A final factor is their relative performance.

Let’s take a closer look.

Factor 1: Cost

The first evaluation factor is costs between Motley Fool Rule Breakers VS Stock Advisor. If you are a new investor or just new to the investment research game, you may not want to obligate yourself to subscriptions that cost hundreds each year unless you are sure this research will benefit your financial position.

Motley Fool Stock Advisor Cost

Stock Advisor’s regular price is $199 per year, but The Motley Fool is currently running a promotion where you can get a one-year subscription for just $79. With this promotional offer, the cost comes down to an affordable $1.52 per week. Click here to check it out.

Motley Fool Rule Breakers Cost

Rule Breakers runs $299 per year, $100 more annually than Stock Advisor. The Motley Fool has a current promotion of $99 for the first year of Rule Breakers, a 67% savings, which breaks down to a weekly cost of just $1.90 if you click here.
These are the services that you get with Rule Breakers:

• Two monthly stock market picks
• 5 “Best Buys Now” out of 200 stocks
• Foundational stock recommendations
• Community and investing resources

If these look familiar, you are right. Rule Breakers’ interface and subscription products are similar to Stock Advisor’s.

So, is it worth it to pay $100 more for Rule Breakers?

While Rule Breakers’ track record is impressive, it has not done as well as Stock Advisor. Since its establishment in late 2004, Rule Breakers mostly followed S&P 500 results for the first five years of its tenure and started to break out in 2010.

Rule Breakers stock pick recommendations are published twice a month, on the second and fourth Thursdays.

Stock Advisor is Cheaper

Considering that it costs $100 less annually for the Motley Fool Stock Advisor VS Rule Breakers, Motley Fool’s Stock Advisor is significantly cheaper than Rule Breakers, even though the subscription interfaces are virtually identical. Rule Breakers cannot be ignored, however, as it is with this service that you have the best chance of finding early-stage high-growth prospects.

Factor 2: Investment Strategy

Another important consideration when selecting an investment research service like Motley Fool Stock Advisor or Rule Breakers is their approach to making monthly stock recommendations. The right strategy should align well with your own investment goals.

Stock Advisor Strategy

Stock Advisor searches every sector of the market for potential winners. Past twice-a-month stock pick recommendations have included Amazon, Walt Disney, and Netflix, none of which were by any means guaranteed “wins” when Stock Advisor first started recommending them.

Sometimes Stock Advisor’s list of stocks is mature companies that The Motley Fool predicts still have a significant upside. Investing in these companies can not only earn you market-beating returns, but they can also have lower volatility than many other “hot” stock picks.

Looking at Stock Advisor’s picks, many of them are NOT technology companies. Stock Advisor divides its “Best Buys” section into these three lists:

• Timely Stocks are Stock Advisor’s favorite investment opportunities to hold for at least five years, updated twice a month (10 stocks)
• Foundational Stocks are companies with solid track records and which Stock Advisor believes can strengthen any portfolio, updated quarterly (10 stocks)
• Exchange-Traded Funds (ETFs) are the list of ETFs Stock Advisor recommends holding for broad concept investing, updated annually (5 ETFs)

One could argue that the Best Buys list is even more valuable than Stock Advisor’s bimonthly picks. They can help you build a better-diversified portfolio, and you can choose between up-and-comers as well as established companies.

You can read more here about the strategy Stock Advisor uses to pick their stocks.

Rule Breakers Strategy

Rule Breakers is more aggressive than Stock Advisor regarding its monthly stock recommendations. Rule Breakers picks stocks it believes to have the highest growth potential, but they might be volatile.

Rule Breakers also publishes its latest recommendation every other Thursday, opposite Thursdays from when Stock Advisor announces its picks.

Rule Breakers tends to focus on more volatile stocks to identify companies with the highest growth potential well before they break out into the marketplace on a large scale. For more information on the criteria, Rule Breakers uses to pick its stocks, read our Rule Breakers review.

In addition to its twice-a-month stock recommendations, which come out on the second and fourth Thursdays of the month, Rule Breakers publishes its own “Best Buys Now” list, organized differently from the one on Stock Advisor. Rule Breakers chooses five best buys around the middle of every month, along with an in-depth explanation of why it believes these are good investing opportunities.

Each year, Rule Breakers publishes a list of ten “Starter Stocks,” which they believe represent a good foundation for your portfolio, both in terms of risk and reward. Here are some features of Rule Breakers’ Starter Stocks:

• High-growth stocks in growing industries
• Sizeable companies
• Outperform the market
• International Exposure
• Generate enthusiasm among investors
• Innovative
• Represent how business can be done better

The idea behind Starter Stocks is these are slightly more conservative picks than monthly Rule Breakers recommendations. They are there to help cushion your portfolio if the Rule Breakers’ recommendations don’t work out the way their analysts predict.

Stock Advisor Has a Better Overall Strategy than Rule Breakers

In Modest Money’s opinion, Stock Advisor represents a better balance of risk and reward than Rule Breakers. Stock Advisor’s across-sector recommendations are more diverse than Rule Breakers stock picks, which focus on break-out technology stocks.

If you must choose one or the other, Stock Advisor will do a better job of helping you build a well-rounded investment portfolio with excellent returns.

Factor 3: Performance

Performance is the ultimate defining factor when it comes to any financial product. As far as investment research goes, both Stock Advisor and Rule Breakers outperform the general market.

Stock Advisor Performance

Since the subscription service began in 2002, Stock Advisor has achieved an average return of over 400%. In comparison, general stock market returns have averaged around 100% during the same time frame.

Modest Money analyzed Stock Advisor’s five earliest stock picks and concluded that if you had invested $1,000 in each of these in 2002 when they were published, your investment would have grown to around $305,000 today. That’s without dividend stock reinvestment or additional investments.

One thing to remember about Stock Advisor is that you are not likely to see gains by investing in the short term. In fact, you could lose money if you implement day or swing strategies using Stock Advisor picks. The picks are tailored to long-term investors.

The Motley Fool advises its subscribers to stick to a five-year investment strategy for a reason. If you don’t, you risk your investments underperforming compared to the general market. You can read more here about the best investing style to use with Rule Breakers and Stock Advisor, in addition to other Motley Fool products.

The other thing to remember is to diversify. Even The Motley Fool’s recommended minimum of 25 stocks is probably not sufficient to diversify your entire portfolio. According to modern portfolio theory, minimizing risk while maximizing returns does not just mean holding many different assets; it also means seeing how those assets are correlated to each other.

In other words, in addition to investing in Stock Advisor’s monthly stock picks, you should consider investing in index funds, either in the form of mutual funds or ETFs. You can also use other means to diversify your investments outside of the portion of your portfolio that consists of actively managed stocks. It’s always important to keep your own individual investment goals, investment philosophy, and investment horizon in mind.

That being said, as long as you are diversified, Motley Fool’s Stock Advisor provides excellent research and an to power your stock investments.

Rule Breakers Performance

Compared to its flagship Stock Advisor, the performance of Motley Fool’s Rule Breakers might seem underwhelming. As of the date of this publication, Rule Breakers has achieved over 200% overall returns, more than doubling what the S&P 500 has achieved over the same time frame.

As it did with Stock Advisor, Modest Money also calculated the returns of investing $1,000 in each of Rule Breakers’ first five stock picks. In this case, your initial investments in Rule Breakers stock picks totaling $5,000 would have grown to more than $130,000, still a very respectable return, considering the S&P 500 would have only returned around $55,000.

It should be noted that Rule Breakers didn’t come around until almost three years after Stock Advisor, which partially explains why Rule Breakers’ performance lags that of Stock Advisor. You can find out more about Rule Breakers’ historic performance by reading this.

Investment research and informed decision-making are critical, but you should also make some judgments about whether the assumptions of The Motley Fool and other companies are valid. Both Rule Breakers and Stock Advisor provide supporting analysis about why they made their picks.

Given the higher volatility of these picks, it is especially critical to read Rule Breakers’ supporting analysis. Rule Breakers does a great job pointing out the “red flags” and “green flags” of its stock recommendations. Studying these can help you understand all investment decisions and risks before you undertake them.

Stock Advisor Has Better Historical Performance than Rule Breakers

Any way you slice it, Stock Advisor has done a better job picking winners than Rule Breakers.

However, Rule Breakers’ performance is certainly nothing to sniff at, and it might be your best chance to find the next heavyweight, high-growth stock before it pops.

Factor 4: Target Audience and Investment Approach

Each investment advisory service is often tailored for a specific type of investor and investment approach. Understanding the target audience and the intended investment approach for both Stock Advisor and Rule Breakers can help an investor make an informed decision on the most suitable service for their individual needs.

Stock Advisor Target Audience and Approach

The Motley Fool’s Stock Advisor is suitable for both beginner and intermediate investors who want consistent returns over a longer time horizon. Its strategy is centered around value investing and long-term growth.

The service tends to pick companies with solid fundamentals and growth prospects, which can provide more stability and less risk than stocks selected based on their high-growth potential alone.

Furthermore, Stock Advisor offers comprehensive educational materials and tools, making it a great choice for those who want to learn more about investing and build their financial literacy. Its approach encourages investors to buy and hold, making it a better fit for those with a patient, long-term investment strategy rather than those looking for short-term gains.

Rule Breakers Target Audience and Approach

Rule Breakers is best suited for more experienced investors who are willing to take on more risk in exchange for potentially higher returns. Its focus is on “high-growth” stocks, often in the tech sector or other emerging industries. These are companies that are seen as potential disruptors in their respective industries.

The inherent risk in this strategy is that these picks can be quite volatile, making it a potentially poor choice for more conservative investors or those close to retirement. However, for investors who are willing to take on more risk and have the time to weather the ups and downs of the market, Rule Breakers could offer significant returns.

In conclusion, the target audience and approach for Stock Advisor and Rule Breakers are quite different, and each investor should assess their risk tolerance, investment horizon, and level of experience before deciding which service is the best fit for them.

Factor 5: User Experience and Support

Another important factor to consider when comparing Motley Fool’s Stock Advisor and Rule Breakers is the user experience and support provided by each service. This can include the layout and design of the platform, the quality of the educational materials, and the responsiveness of the customer support team.

Stock Advisor User Experience and Support

Stock Advisor’s platform is well-designed, making it easy to navigate and understand. The service provides clear and straightforward guidance making it ideal for beginners. Furthermore, The Motley Fool provides a wealth of educational materials, including articles, podcasts, and community discussion forums. Their customer service is highly responsive, providing timely and helpful answers to any queries.

Rule Breakers User Experience and Support

Rule Breakers also has a user-friendly platform, but the stock picks and guidance can be more complex, reflecting its focus on high-growth and potentially volatile stocks. This can make it slightly more challenging for beginners.

The educational resources are similarly high quality, and there is a strong emphasis on understanding the rationale behind each pick, which can be highly informative for investors looking to deepen their knowledge. Rule Breakers also offers excellent customer service, with prompt and helpful responses.

The user experience and support for both services are generally positive, but the complexity of the guidance given by Rule Breakers might be more suitable for intermediate or experienced investors. Beginners or those who prefer a simpler approach might find Stock Advisor more to their liking.

Motley Fool Stock Advisor vs Motley Fool Rule Breakers, Who Wins?

Stock Advisor is better than Rule Breakers for most investors in terms of the factors Modest Money evaluated—cost, strategy, and performance.

Both services pick a few stocks per month, along with other popular services, to help you build a reasonably diversified stock portfolio. With only two new recommendations monthly, it might be tempting to blindly buy everything The Motley Fool puts on its Rule Breakers and Stock Advisor lists.

However, since you are actively trading stocks, you should read each recommendation’s supporting research closely. If something doesn’t make sense to you, you don’t have to buy it just because you subscribe to Stock Advisor or Rule Breakers.

If you try Stock Advisor and like it, you may want to consider Rule Breakers as an add-on feature.

Stock Advisor

There is no best stock advisor out there, but The Motley Fool’s services come pretty close. The Stock Advisor is The Motley Fool’s first and best subscription service. Stock Advisor combs every sector for investment opportunities with excellent risk-reward ratios.

Is Motley Fool Stock Advisor worth it? Well, its services are optimal if you are seeking to buy stocks from multiple sectors.

Stock Advisor also makes available a wealth of resources to learn about various investing topics, which is beneficial to beginning investors. With its low annual price, Stock Advisor is one of the best investment research deals globally.

If this sounds good to you, click here to get Stock Advisor at the introductory price of $79.

Rule Breakers

Rule Breakers seems a but outmatched compared to Stock Advisor, but it has its place in The Motley Fool universe. Motley Fool Rule Breakers is a great resource to help you choose high-growth stocks in high-growth industries that will become tomorrow’s stock market leaders.

You will assume a bit more risk with Rule Breakers, but it also might help you find the market’s next kingmaker stock. Starter Stocks can help you provide a measure of diversification to your Rule Breakers portfolio.

The Rule Breakers service is best used by intermediate to advanced investors or as an add-on to the Stock Advisor subscription.

You can click here to buy a Rule Breakers subscription at the best price of $99 with a 30-day membership fee-back guarantee.

If both Rule Breakers and Stock Advisor and Rule Breakers sound good or you are having a hard time deciding between them, you can bundle them both for the first-year price of $199.

All The Motley Fool products are backed by a 30-day money-back guarantee, so if you find you are not satisfied with either service, you will be refunded if you cancel during the trial period.

Learn More About Motley Fool Stock Advisor

Learn More About Motley Fool Rule Breakers

Frequently Asked Questions

Is The Motley Fool a good idea?

The Motley Fool offers valuable investment guidance and stock recommendations, making it a good idea for those looking to enhance their investment portfolio. With a history of success, particularly with its Stock Advisor and Rule Breakers services, it provides well-researched picks and educational materials beneficial for both beginners and experienced investors.

Is it hard to cancel a Motley Fool subscription?

Canceling a Motley Fool subscription is straightforward. The company offers a customer-friendly cancellation policy, and subscribers can cancel their subscription at any time. The Motley Fool’s commitment to customer satisfaction includes hassle-free cancellation procedures.

How to get The Motley Fool for free?

While most of The Motley Fool’s premium services require a subscription, you can access some of their resources for free. This includes educational articles, podcasts, and investment insights available on their website. However, for their premium stock picks and detailed analysis.

What are The Motley Fool’s top 10 stocks?

The Motley Fool’s top 10 stocks are a part of their active recommendations, typically featuring in their Stock Advisor or Rule Breakers services. These stocks are selected based on their growth potential, financial health, and market position. The exact stocks vary over time as The Motley Fool team updates their recommendations based on market dynamics.

How often does The Motley Fool update its stock recommendations?

The Motley Fool updates its stock recommendations regularly, with new picks released monthly for both Stock Advisor and Rule Breakers subscribers. Additionally, the services provide timely updates and “Best Buy Now” selections, ensuring subscribers have the most current information for making investment decisions.

Can The Motley Fool’s services help with retirement planning?

Yes, The Motley Fool’s services can be beneficial for retirement planning. Their long-term investment strategies and stock recommendations can aid in building a diversified retirement portfolio. However, it’s important to complement their guidance with other retirement planning strategies to ensure a well-rounded approach.

Does The Motley Fool provide guidance on international stocks?

Motley Fool does cover international stocks, offering insights and recommendations on companies outside the U.S. This allows subscribers to diversify their portfolios geographically and tap into growth opportunities in global markets.

What risk level is associated with Motley Fool’s Rule Breakers service?

Rule Breakers is associated with a higher risk level compared to Stock Advisor. It focuses on high-growth, often volatile stocks in emerging sectors, which can lead to significant fluctuations in investment value. This service is more suited for investors who are comfortable with a higher degree of risk and market volatility.

Are The Motley Fool’s stock picks suitable for day trading?

Motley Fool’s stock picks are generally not suitable for day trading. The service focuses on long-term investment strategies, with a recommended holding period of at least five years. Their approach is more aligned with building a diversified, growth-oriented portfolio rather than short-term trading gains.