Motley Initial Made Easy

Motley initial

in this video i'll be giving you my full and completely honest motley fool stock advisor review so if you've been wondering if the motley fool stock advisor is right for you if you've been wondering if the motley fool stock advisor is a scam or just whether the motley full stock advisor is worth the price this video is for you so let's get started right now how's it going everybody and welcome back to the channel if it's your first time here my name is jay and on this channel i use my investing expertise to give you the tools and resources that you need to get the most out of your money and today we're talking about the motley fools stock advisor stock picking service i've gotten a few dms from people on instagram i've seen some people asking questions on reddit and other investing sites and i've seen a boatload of ads advertising the motley fool stock advisor service so i spent a hundred dollars of my own money i signed up for the motley fool stock advisor service just so i could do this review for you guys and let you know if it's worth your time and money and all i ask for return is that you hit the like button on this video to show youtube that we're making good content other people should see so please hit that like button i'd really appreciate it so to start off what is the motley fool the motley fool is an investment website that has been around as far as i'm concerned forever they were they were one of the first websites i found when i started investing as you can see here i signed up in 2005. back then they were a super helpful website for any beginner they broke down investing terms and investing strategies in a simple and fun way that really anyone could understand as the years went by however they started transform into more of a kind of buzzfeed of the investing world where nowadays they are just pumping out article after article after article pitching stocks and kind of gotten away from their main focus which was giving good helpful advice to beginners and preaching buy and hold investing so i'm not rating the website all that much these days but like i said in the intro i'm gonna get a lot of ads for their stock advisor service so i saw an ad it was half price i spent the money for you guys let's get into what the motley fools stock advisor service gives you and what it's all about okay so when you sign up for the motley fool stock advisor when you give them your credit card number once they charge your card what happens the first thing when you create your account they ask you a series of very simple questions about your investing strategy they ask whether you want stocks that are very high growth very high high risk or semi-high growth semi-high risk or conservative um i picked give me the high growth stocks let's go let's see what you're all about give me your best picks so after you answer a few questions they go and think before they send you another email saying your stock picks are ready and they make it sound like you're getting real personalized stock picks whether or not that's true we'll get into a little later okay so here's the email you get once your stock picks are ready they say jay as a new motley fool stock advisor member we want to get you on the path to success blah blah blah here's how we're going to do that and they send you you know you click the link at the bottom and it takes you to your stock advisor picks and here are the stocks you should buy today they say so they got shopify pinterest fiber lemonade zoom disney amazon autodesk and then down at the bottom they have a bunch of articles and stuff with their picks and their cases for the different stocks so that's what you get right off the bat so are those stock picks those buy now picks individualized to me well it doesn't look like it let's look here go into my robinhood app and pull up lemonade which was one of their top picks and you scroll down to the stocks that people who own this stock also own and scroll through these and you can see a lot of these names on the also owned are names right off that list from the motley fool stock advisor so it looks like they may just give you a generic list of their top stock picks and that's what everyone gets okay so now they give you their list of recommendations but what do they advise is this just a pump and up scheme where they're gonna get all their paying subscribers into the stocks and then out real quick what's their philosophy like i said before back in the day they preach buy and hold investing long-term investing they really preach the rationality i try to preach on this channel are they still about that so here's the page how to win with your stock advisor service and this will go through what kind of what they recommend what they're all about in the service and their principles of winning first off they recommend you buy 15 or more of their recommendations now they're kind of preaching diverse diversification there which is good but the fact they want you to buy 15 of their recommendations yeah it sounds a little off to me they want you okay they're preaching buy and hold they want you to hold the stocks for three to five years or more you really shouldn't be buying any stocks unless that's your time period they want you to add new money to portfolio regularly so you can continue to grow your account and they want you to pounce on the stock market declines like warren buffett always said be greedy when others are fearful by the dips and they want you to target returns over a 10 to 25 year period that's good long term buy and hold investing is the best way to win with any stock and they also give you what not to do don't buy fewer than 10 stocks yet you don't want to be too concentrated one stock they want you to be diversified don't aim for short-term gains yeah don't be a trader just buying and selling don't invest all your savings into stocks yeah you don't want to go broke if the market falls don't borrow money to buy stocks pretty obvious don't buy stocks because they're under five dollars i see this a lot where people get too hung up on a stock price and they think just because they can get more shares of a lower price stock that is somehow a better buy stock price and value are not correlated especially now in the era of fractional shares just buy the best companies you can afford regardless of price don't expect all your stocks to go up that's pretty obvious and don't use options in your first year of investing options are kind of all the rage now with a lot of traders you can make or lose a ton of money using different option strategies but you never really need options to make a lot of money in the stock market so that's their philosophy with the service it's good to see they're still preaching that sound buy and hold philosophy that long-term view so i like that that's good so it's definitely not just a pump and dump scheme where they want to get everyone into the stock so then they can dump it on their end and make a bunch of money so then the next question we have is what do their stock picks look like what do you get when they recommend a stock to you first off they have a list of all the stocks they're currently recommending and their performance i guess since the date they recommended the stock to whatever the price is at now and they compare it to the s p 500 you can see they have a kind of huge list of stocks they are recommending so maybe they do personalize it a little more if they have this many stocks in their recommendations or maybe some of these are just older that they haven't told people to sell yet not really sure but they got the date they recommended it and all this kind of stuff and up at the top tom and david are their founders the two guys running this you can see the how they're performing versus the s p 500 shockingly they're way ahead of s p 500 i wonder if they would even tell you if their picks were losing i'm sure they would have to because people would know but so now let's get into what one of their picks actually looks like and here's the article that was at the top when i signed up it was their top pick for january 2021 and it's lemonade ticker simple lmnd and here's kind of what they give you on their pitch of a stock they give you this article you can see over on the right hand side little grey box kind of gives you the summary of what they like about the stock what the what the company is all about while the full article has their longer pitch they do go into a fair amount of depth pitching their case to you for the stock they tell you obviously why they like the stock why they trust the leadership and why they're recommending the stock now and thankfully they give you a short little section on what the risks to that stock may be so that's what one of their recommendations look like what else do you get with the motley fool stock advisor so with the motley fool stock advisor you get you know some tools that are kind of useful the first tool here is a portfolio allocation tool asset allocation picker they call them motley fool house teams and it's kind of simple you got these sliders whether you can slide your risk to reward you know bold risk neutral risk or if you're cautious and how much time you have to invest and it will give you you know these different houses for portfolio allocations whether you're bold or cautious and what your time frame is here so let's just say we're a bold investor we got 30 years to invest see what they give us and the portfolio allocation they recommend is 70 stocks 20 etfs and 10 bonds are cash let's see the etfs they're recommending total stock market and total international market two etfs i recommend all the time and then i guess they're recommending 70 individual stocks they break it up large cap international small cap mid cap that's not all that great i just think it should be the other way around where you're 70 into the broad index etfs and then 20 in individual stocks that would be what i would recommend they go the opposite direction because obviously they are selling you a service where they recommend individual stocks they also have another tool here where you can simulate your probability of making money in the stock market and they got these little sliders you can change it by how many stocks you hold in your portfolio and your time horizon one three or five years and it will tell you your probability of return like if we look at we have if we hold one stock for one year we they say we have a 61 percent chance of making money an average return of 11 that's actually a lot better than i would have thought if we bump into 10 stocks for one year our probability goes up to almost 75 percent of making money with 11 return if we go out to five years with 10 stocks we have a 92 percent chance of making money and an average return of 68 and you can see as we add more stocks to this our probability goes up up let's go 50 stocks 98 chance of making money almost 70 percent return you can't miss 50 stocks for five years apparently can't miss stocks only go up to be honest i don't know about the methodology they're using to calculate in that tool i don't know how accurate that is it may be completely accurate but i don't know it seems kind of simple and broad and just kind of saying hey take me at my word so that's that's kind of underwhelming to me also with the stock advisor you get lots of articles and stock reports and about an email i'm getting about an email a day so far from them on various topics highlighting different tools and stock picks and things like that so you get a lot of information one thing i really like they sent me that i can't find for the to show you in this video is they sent me a pdf document where it gave me their top 10 picks for 2021 and they went in depth on all of them they gave the pro and cons to each of them what the company does etc etc it was really information packed it was really in-depth i really like that i wish i could have found it to show you so what are my thoughts on the motley fool stock advisor what's good what's bad what's the final verdict here the number one good thing i really like about the motley fool stock advisor is they preach long-term holding of these stocks they're not pitching you stocks to get rich over the next three to six months or even one year they're saying hold these stocks for a long time we think they're gonna be winners over the next five ten fifteen years so i like that they're not just pitching you short-term penny stocks like uh you might find if you go searching around youtube a lot the next thing i really like about the motley fool stock advisor is they give good in-depth reasoning for why they're recommending the stock to you they're not just saying hey trust me buy this stock they give a full full analysis full pitch so they give you the details they give you the why of why they're recommending the stock and the third thing i really like about the motley fool stock advisor service is it's relatively cheap i got it at 50 off which is 99 currently to be honest that's the max i probably would have paid i wouldn't have paid full price of 200 or whatever it is so for for 99 it was worth a shot to see what it was all about in my opinion so now let's get to what i don't like about the motley fool stock advisor and first and foremost they don't recommend a price range when they're recommending a stock to buy the example i was using earlier in this video of lemonade they recommended the stock in december of 2020 i believe they reiterated it as their best buy of january 2021 but between late december of 2020 and the middle of january 2021 when i'm recording this the stock has skyrocketed it's mooned like it has gone up by 40 50 maybe even more than that percent and a stock you think is a buy at one price may not be a buy 50 later they don't really give you a price range where they think a stock is a great buy the second thing i don't like is the stock picks aren't really personalized they're not tailored to me by any means now you may think that's good that they're just out here they're giving you their best stock picks whatever they think they are but what a great stock for them to hold and what a great stock for you to hold may be totally different than what a good stock for me to hold or what a great stock for someone else to hold is one stock isn't right for everybody so i wish they personalized the stock picks a little more although i can see why they don't i don't know how many people they have signed up to the service but they're just out here giving you what they think their best picks are and it's up to you to decide if that stock is right for you your risk tolerance and your portfolio and building off that point is the third thing i don't like about the motley fool stock advisor is they're not teaching you how to research the stocks and analyze the stocks for yourself they're just saying here's our case for this stock buy this stock take our word for it trust we've done our research if you trust us and buy this stock hold it for five years you'll make money i don't like that if i'm paying money for a stock service like this sure give me your recommendations teach me how to find my own recommendations if i don't know how i really don't like just taking someone's word for it and investing upon that you should always be doing your own research learn how to do this stuff for yourself you'll be far better picking stocks and researching them for yourself then you will paying 99 and just taking someone's word for it regardless of how good of an investor they are the fourth thing i don't really like about the motley fools stock advisor service is they don't tell you how to allocate the stocks their best picks they give you that list of ten um they don't give you any recommendations on how to how to weight them um you know maybe a ranking one through ten what they really think is the best pick versus what you know their tenth best pick is they just throw the stocks at you and i guess you're supposed to decide choose for yourself which on one hand is good but if i'm paying for you to recommend stocks to me sure give me your 10 stocks but then tell me this is the one i feel strongest about this one is number 10 on the list i still like it but it's number 10. and they do label some stocks as a best buy or top pick but they don't really go beyond that and give you any guidance as how to allocate or rank what their top picks are and the final thing that i don't like about the motley fool stock advisor service is the website isn't that great it's kind of hard to navigate to find different things like those tools i showed you earlier you can't really get to off the main stock advisor screen i got them because they were emailed to me and that led me directly to the page so there's a lot of stuff you get with the service as far as articles and research and tools like that but they're not really easy to get to from the main page they're not in front of your face so what's the final verdict here should you sign up for the motley fool stock advisor is the motley fool stock advisor worth it my default answer is i don't think anyone should really pay anyone else for stock picks learn how to find them yourself learn how to do the research become a better investor that way granted at 99 i think for most people you know it's affordable um as long as you don't take their word for it just blindly buy everything they pitch i think it's decent um the stocks they're recommending i mean aren't anything groundbreaking there's nothing i saw there that i haven't heard a lot of buzz about and like other investing forums or websites or facebook groups or youtube channels so they're not really digging up the dirt and finding anything too too special on the flip side of that there's no stock i saw on that list that i went oh why would you ever buy that so really it's just up to you i don't think you're getting anything too great on the flip side it's not that bad either i think 99 is about the maximum i would ever pay i probably won't renew my subscription after my year is up so if you've got a hundred bucks lying around and you want to get a year's worth of someone else's stock picks go for it i would recommend that you stick around to this channel and watch these two videos over here because they will make you a better investor they'll teach you how to do it for yourself i hope to see you there and i'll see you in the next video