Why You Should Use Motley Fool Stock Advisor to Choose Your Stocks
By Space Coast Daily // March 23, 2021
For most investors, the biggest issue you have is picking the right stocks. Investing in ETFs and bonds with robo-advisors like SoFi is an easy, low-risk option, but you’re not going to net high returns from this strategy.
It’s good to mix in some individual stocks with your portfolio to make those big yields throughout your investing career.
But how do you pick those stocks?
The Motley Fool Stock Advisor has a long history of success and remains one of the few legitimate stock picking platforms around today. Let’s take a look at why you should consider it. For full details of the platform, check out this Motley Fool review.
How Does Stock Advisor Choose My Stocks?
Stock Advisor is the basic entry level program for the paid subscribers of the Motley Fool. The Fool is unlikely to make you an overnight stock market millionaire, but it does offer some intriguing recommendations.
Subscribers gain the following three features for stock picking:
■ Two tailored stock picks in the monthly newsletter.
■ The Starter Stocks report, which gives you 10 different stocks to start your portfolio.
■ The Best Stocks to Buy report provides a list of the current best buying opportunities.
You will spot a mix of household names and up-and-coming companies to choose from. Of course, the stocks you decide to invest in are ultimately your choice.
Subscribers also have a forum they can discuss the markets in. This investment community can be invaluable for the beginner.
Who is Stock Advisor Aimed At?
Motley Fool Stock Advisor is not an ideal platform for everybody. If you’re a long-term investor, the Fool’s stock picks work out more often than not.
Day traders and other types of short-term traders are not catered to here. On average, the Fool recommends being prepared to hold recommended stocks for a minimum of 2-3 years.
This doesn’t mean you won’t see huge returns months after investment, but this is the exception more than the rule.
Screen Your Stocks with the Motley Fool
One of the most useful tools available to investors is the free online stock screener. This feature helps you to pick out the best investments and deepdive into any company or investment that catches your eye.
You can find different stocks with a variety of different filters, such as volatility, class, and sector. There’s also a ‘Conviction’ filter, which focuses on how industry analysts feel about a certain stock.
There are star ratings on each stock, but these are applied by individual Fool members, so tread with caution. The crowd isn’t always right.
Which Stocks Does the Motley Fool Focus On?
Newer investors are advised to do their due diligence when building their portfolios and invest in companies that are all but guaranteed to still be trading profitably ten years from now.
The majority of stock recommendations are large cap stocks, which is any company with a market value north of $10 billion. In other words, these are big companies with solid foundations beneath them.
There’s a time and a place for penny stocks and other speculative investments, but most of your portfolio should be invested in large cap and mega cap stocks. This is the only way to be sure that you’ll weather the storm throughout the next boom and bust cycle.
All the best robo-advisors, the cutting edge of investing technology, follow the same principles.
Should I Invest in High Yield or High Dividend Stocks?
Rarely will you find a high yield stock with a lot of potential to soar higher. Many stocks are either one or the other. It’s not uncommon to spot high dividend blue chip stocks, for example, because these stocks typically have low volatility, so it encourages investors to buy shares and hold them. It’s the marker of stability.
Choosing between high dividend yield and companies with potential is tough.
Although buying low and selling high is the name of the game, try to strike a balance. Regular high dividend stocks with dividends reinvested are one of the best legitimate ways to make money online.
But ultimately it’s up to the investor and the goals they have.
Does the Motley Fool Stock Advisor Beat the Markets?
During the period 2011-2022, the average S&P 500 annual return was 13.9%. This was what you would have gained during the biggest bull run in history.
Sounds great, right?
If you educate yourself on investing you would see that much bigger returns could have been yielded. The Fool’s Stock Advisor program, since February 2002, has returned 562%, when compared to a total of 120% on the S&P 500.
You can comprehensively say that during its nearly 20-year history, it’s comprehensively beaten the market.
These figures alone demonstrate the credibility of this program and indicate why investors should put their trust in this program.
Have you tried out the Motley Fool Stock Advisor program?