Motley Fool has proven itself to be a top investment advice platform. The company that started off as an online April Fool’s joke has grown to a serious and respected platform with over 700,000 paying subscribers. Motley Fool has consistently provided beat-the-market stock tips resulting in consistent returns that are multiples of the overall market.
Deciding which subscription package to purchase, however, can be daunting. Of course, you might want to subscribe to all Motley Fool’s services, but who has time for all of that reading? Interestingly, even though both services are owned by Motley Fool, the analysts making the picks are different, which means each subscription’s stock picks are different as well.
This guide will help you decide between Motley Fool Stock Advisor vs Rule Breakers to see which subscription service is better for you. The answer comes down to the type of investing you want to do and how much risk you are willing to assume.
Motley Fool Stock Advisor vs Rule Breakers: Services
Motley Fool’s Stock Advisor Overview
Stock Advisor is Motley Fool’s flagship service. Since 2002, it has provided investors a literal wealth of information, from monthly stock picks to educational resources on investing. The average of its recommendations has exceeded 500%.
Motley Fool’s Stock Advisor Value
Investors have access to all this information for the relatively low price of only $199 annually, which is around what most platforms charge monthly for information packages of this caliber. Better yet, you can subscribe here for only $79 for your first year with a 30-day money back guarantee. If you hate it, they make it easy to cancel. But you won’t hate it.
Motley Fool’s Stock Advisor Specialty
Stock Advisor specializes in picking market-beating stocks with up to a moderate level of volatility. Stock Advisor uses a proprietary “crushability scale” explained in this review. Stock Advisor urges its subscribers to hold at least 25 stocks so they are sufficiently diversified to stave off losses should one of their picks be wrong.
Motley Fool’s Rule Breakers Overview
Motley Fool’s Rule Breakers operates in a similar manner to Stock Advisor, but with more of an emphasis on what they term as “disruptive growth stocks.” Rule Breakers also similarly advises subscribers to hold at least 25 stocks for five years or more to realize the full growth potential of their picks while minimizing risk exposure. On average, Rule Breakers picks have exceeded 279% returns, which is only about half the returns accumulated by Motley Fool Stock Advisor picks.
If you go with Motley Fool Rule Breakers, you are more likely to get in front of a stock with enormous growth potential well before the rest of the market hears about it. This is what Rule Breakers is all about, picking the winners before they go to the moon, not on their way up.
These types of disruptive, high-growth companies may be more likely to go bust than boom, which is why it is important for investors to make sure they are sufficiently diversified to avoid that loss.
Motley Fool Rule Breakers Cost
The normal price for Motley Fool’s Rule Breakers is $299, but they offer a first-year price of $99 for the service. This is pricier than their Motley Fool Stock Advisor subscription but still well under what other companies as financially intelligent as Motley Fool would charge for an equivalent service.
Motley Fool Rule Breakers Specialty
Rule Breakers aims to present investors the opportunity to find out about companies with excellent growth prospects but before they become household names. This is usually based on new and innovative products and services these companies have to offer.
Past picks include Tesla, Mercado Libre, Baidu, and Under Armour. This free article contains an analysis of some of these jaw-dropping returns, such as the 10,149% growth of Tesla stock since it was recommended by Rule Breakers.
Rule Breakers is more appropriate for the speculative investor who is looking to identify the next Amazon while it is still at the stage where Jeff Bezos was driving around selling paperbacks out of his car trunk. There was no reason for that company to experience the meteoric growth that it did, but it did.
Discovering these aim-for-the-stars opportunities is what Rule Breakers is all about.
Motley Fool Stock Advisor vs Rule Breakers: Bottom Line
My bottom-line analysis is that Motley Fool Stock Advisor beats out Motley Fool Rule Breakers for most investors. Stock Advisor is substantially cheaper and has historically delivered better returns than Rule Breakers picks, by a couple hundred percent. Plus, you can’t beat the price of Stock Advisor at only $79 for the first year. You won’t hesitate to buy a second year. Hands down, Stock Advisor wins as the best subscription service for almost any investor.
But Rule Breakers is a great subscription to have in addition to Stock Advisor. It provides great speculative opportunities for investors willing to take on significant risk in exchange for the possibility of great returns.
If you can, buy them both. If you can only buy one, buy Stock Advisor.