Motley Fool Newsletters

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Newsletter Review Score:  65/100

There are several “premium services” available on Motley Fool for you to subscribe to.   I decided to try out two that are on different sides of the spectrum.   The “Income Investor” newsletter and the “Hidden Gems” newsletter.    I have belonged to both of these services for a few months now (I bought the year subscription) and I have to admit… I wish I bought it monthly, so I could have cancelled by now.   Let me describe how the information is, in these two paid services.

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First, the “Income Investor” newsletter.    This one is designed for people who want to own some stable stocks, and basically do very little trading.   Frankly, after getting the information (which is only one update per month), I felt like I already knew everything they were saying.   They give you their portfolio of “5 buy now stocks” and about 20 other “buy” stocks, which they recommend that you add to your portfolio as you can afford to.

The problem with the “Income investor” is that there is no reason to join for more than 1 month.   You get the 5 stocks, which are no surprise… SO, JNJ, PEP,WM, and DEO.  Whoopee… after you get those 5 obvious blue chips, you can cancel.   I felt so stupid for buying the entire year.    Yes, you do get an occasional “intent to buy or sell” on something new, but the bulk of this whole service is about owning those 5 stocks.     I see no reason to subscribe to this service, with such lame information.

Second, the “Hidden Gems” newsletter.   I joined this one because it focuses on small cap stocks which potentially can be very profitable, and require frequent alerts in the newsletter to make sure you are buying and selling at the right times.   Or so I thought…

The problem with the “Hidden Gems” newsletter is that practically all of the stocks they pick LOSE money.   I kid you not.   They had one “winner” which was Boston Beer.   They also had FOSSIL.    But they had another 30 stocks that were BIG LOSERS.   If I had followed their portfolio as they recommend you do, I would have been down, huge.     Here is another problem… you don’t get fast enough info.   Again, the updates are few and far between… 2 per month or so.    There is no way that you can make consistent money on small cap stocks with such infrequent updates to follow.  You are getting beat to the punch on most of the plays here.

Based on the reasons I state above, on both the “Income Investor” and the “Hidden Gems” newsletters from Motley Fool, I can not recommend subscribing to them.  There are much better services on the market, with more frequent updates and information that can be much more profitable.

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5 Reviews on Motley Fool Newsletters

  1. Ron Pertuit says:
    Overall Rating 44444
    Value of Information 44444
    Timeliness of Information 44444
    Exclusivity of Information 44444
    Bang for your Buck 33333

    Folks, you can cancel any of there newsletter at any time and get a prorated refund of the unused portion whether y0u subscribed for a month, a year or two years. Just send them an e-mail and ask to cancel. They send you a refund for the unused portion, no questions asked. I’ve done this time and time again and they haven ‘t ever raised a stink. You may not like their investment advise but they are not a scam. They are an honest accommodating service.

    That being said, I agree with the analysis of Income Investor. And Hidden Gems use to be better when David Garner, co-founder, ran it. Now it is questionable. Other newsletters have done better. Their flag ship newsletter, Stock Advisor, has made me money. It has had some fantastic picks (For example Netflix when no body else believed in the company) And if you are into frequent trading and closely watching your investments their Stock Options Advisor has done reasonably well for me. Keep in mind that none of their stock newsletters are for in-and-out traders. The overall thesis of Motley Fool is to buy promising companies and hold for 3 to 5 years. Their other “claim to value” is the forums which give you access to many other stock traders and their opinions and ideas on a stock by stock basis.

    • Eric says:
      Overall Rating Not Rated
      Value of Information Not Rated
      Timeliness of Information Not Rated
      Exclusivity of Information Not Rated
      Bang for your Buck Not Rated

      I feel the fools were more on the ball in the 90′s when they were giving free advice. I did quite well with several of their recommendations. Now it seems they are making tons with the subscription fees and their advice often isn’t worth the fees. They also keep creating more subscriptions all the time, ‘promising’ incredible returns. I did subscribe to their Stock Advisor two years ago and did well with some of their recommendations. But there were also a few that were total losses. The ‘overall’ returns they show are unreasonable for most investors because it is not practical to hold all the stocks that make up their virtual portfolios. Choose their ‘wrong’ recommendations, and you could end up being very sorry.

  2. Matt Broedell says:
    Overall Rating 11111
    Value of Information Not Rated
    Timeliness of Information Not Rated
    Exclusivity of Information Not Rated
    Bang for your Buck Not Rated

    the Hidden Gems service is great if you want to lose money. It literally gives you so many stocks to choose from, you could never buy them all… and like 3 out of 30 make money. So, unless you happened to get lucky following the 3 they picked which profited, you got KILLED following their picks. Terrible service and a total waste of money.

  3. Jeffrey says:
    Overall Rating 22222
    Value of Information 11111
    Timeliness of Information 22222
    Exclusivity of Information 22222
    Bang for your Buck 11111

    I bought the Income investor newsletter service, too. It’s a nice touch that they mail you a copy, but frankly, I started just thowing them out. The info is useless after the first time you log in. Waste of money, and I paid for the whole year up front, like a moron. Oh well, lesson learned.

  4. Mitchell says:
    Overall Rating Not Rated
    Value of Information Not Rated
    Timeliness of Information Not Rated
    Exclusivity of Information Not Rated
    Bang for your Buck Not Rated

    The picks in the motley fool newsletters are all down big. I have lost over 30k from following these newsletters this year. The advice was truly sub par. I don’t dare follow any other recommendations.