For me, the first paragraph on the Motley Fool website sums up their philosophy:
“The Motley Fool’s name comes from William Shakespeare’s play “As You Like It”. The court jester, known as the Fool, could speak the truth to the king and queen without having his head lopped off. The Fools of yore entertained the court with humor that instructed as it amused. More importantly, the Fool was never afraid to question conventional wisdom. In the same way, we aim to speak the truth about money and investing…and to make financial advice accessible to people of all backgrounds and experience levels.”
It is against this self-defining backdrop that we will look at one of the services provided by the Motley Fool team – The Rule Breaker.
Let’s look at the product and whether it beats the market. Then, perhaps see what other people are saying, the costs, the pros and cons and whether the Rule Breaker service should be part of your portfolio.
Before We start – Are Motley Fool Claims Legitimate?
Claims made by the Motley Fool in terms of consistently outperforming the market appear too good to be true.
This leads many people, especially new investors, to question whether it could be a scam. Things which appear too good to be true are never true. Right?
Wrong. Motley Fool has been in the business for a long time. It has a proven track record that dispels all accusations of illegitimacy.
Over the last five years:
- Rule Breakers is up 331%
- 81% of the Rule Breaker stocks were profitable
- 63 out of 120 Rule Breaker stocks have doubled.
Consistently Rule Breakers has outperformed the S&P 500.
No question of a scam here.
What is the Rule Breaker Program?
The Rule Breaker program focuses on higher-growth businesses. Businesses that the Motley Fool analysts isolate as big movers and shakers are often disruptive in their relative industries and are quite skewed towards technology.
The analysts try to identify new companies that are novel and promise very high growth. Companies that will be the leaders of tomorrow. Amazon is an excellent example of a disruptor, as are Facebook and Shopify.
Rule Breaker provides a couple of stocks that they think are good picks to their subscribers each month.
They also offer five stocks out of 200 that they think are the hottest buys.
Remember that the overarching philosophy at Motley Fool is to buy and hold for at least five years. So you can expect that there will be some volatility in the stock prices during this period. Still, after five years, you should see significant growth.
The same philosophy applies to Rule Breakers.
Recommendations for starter stocks and access to plenty of educational resources add to the Rule Breaker offering.
Check Out Other Rule Breaker Reviews
For a detailed Motley Fool Rule Breaker review, check out what Modest Money had to say.
For a Stock Advisor and Rule Breaker comparison, read this review by Jeremy Biberdorf.
Jeremy also provides a Rule Breaker’s guide on Techbullion.com
In addition, here is a take on a review of Rule Breaker by Bob Haegele.
Last but not least is a Rule Breaker Review by Dmitry Kozlov.
All of these reviews applaud Rule Breaker and recommend it to anyone who is keen on adding some higher risk, higher reward elements to their portfolios.
What Do You Get For Your Money?
Every month members are provided with:
- Two new stock picks
- A list of the best stocks to buy at that time
- A list of starter stocks to build a strong stock portfolio
- Educational resources and community access
Please don’t underestimate the educational resources and the fact that you have access to real experts who are seasoned and who have proven themselves capable of beating the market.
What Does Rule Breaker Cost?
The great news is that for new members, the annual fee of $299 per year has been reduced for the first year to only $99. Cancellation within 30 days will see a total refund, so they seem pretty confident that you will continue to use their product once you start.
As a newbie, the cost is only $1.90 per week. So if you want to take advantage of their special offer for new members, you can start by clicking here.
So, is Motley Fool’s Rule Breakers for You?
The best option for most new investors is to start with the Motley Fool Stock Advisor package. It is a more traditional approach and will provide you with a good spread of lower-risk investments.
Once your basic spread is right, you might want to use Rule Breakers as a great resource to help you choose high-growth stocks in high-growth industries.
Rule Breakers provides some good starter picks. However, it is aimed at the intermediate to the experienced investor. So this may not be the best place to start if you are an absolute beginner. The Motley Fool Stock Advisor package may be a better choice for you.
There is a bit more risk with Rule Breakers, but it might help you find the market’s next big winner.