The Motley Fool: Stock Advisor
Last year some apps made it possible for a simple mortal like us to be able to enter the game of stock market investments without depending on advisors to be able to do so. Some learned the game so well that they were able to multiply their money by 70%, isn’t that awesome?
I on the other hand took longer to enter the game because I found it scary and not knowing where to invest is a problem. When it comes to money I am not the most adventurous person so for me it wasn’t as easy to start, even though I did play a bit, but not knowing where to invest is my biggest issue and no way I am trusting my money and paying an advisor, that is why when The Motley Fool found me and guided through what they do I got excited, they are just what I needed.
They are an affordable yearly subscription service that provides recommendations on what stocks are good to invest in, simply explained.
The Motley Fool was founded in 1993 by brothers Tom and David Gardner as a traditional print newsletter in a backyard shed in Alexandria, Virginia. In 1994, an April Fool’s joke designed to teach an investing lesson put The Motley Fool on the map. Since those humble beginnings, Tom and David, and the community of Fools they’ve gathered, have been leading the charge for individual investors everywhere.
If a Motley Fool Member held 25 or more stocks from our recommendations for at least 5 years, the likelihood that portfolio would have a positive return is 97%.
How to Invest The Motley Fool Way
1. Buy 25 or more companies recommended by The Motley Fool over time
A well-diversified portfolio typically contains 25-30 company stocks, with the more stocks you own and the longer you hold them increasing your likelihood of making money. By joining one of our premium services like Stock Advisor, Rule Breakers, or Everlasting Stocks, we can help you to build diversified wealth over time.
2. Hold those recommended stocks for 5 years or more
The shorter your investing time horizon, the more we think that you’re gambling with your investment money. A longer time horizon for building wealth allows more time for companies to work on your behalf as a shareholder.
3. Invest new money regularly
Having cash available to invest means being able to add new stocks to your portfolio without first needing to sell other stocks. Investing money from every paycheck — even very small amounts — can create a snowball effect for your portfolio. As that snowball continues to roll downhill, it keeps gaining size and momentum!
4. Hold through market volatility
Be prepared for stock market declines — and take advantage of them. The stock market loses 10% of its value about once per year on average. Declines of 20% tend to happen every four or five years. Even bigger stock market crashes, with the major indexes losing 30% of their worth, occur at roughly 10-year intervals. While market declines are never fun, your best options are to either ignore them or use those turbulent times to your advantage. When the stock market is at a low point is an ideal time to buy more of your best stocks. While a sudden or significant market decline might seem devastating today, that setback won’t matter at all in 10 or 20 years.
5. Let your portfolio's winners keep winning
Not all of our stock picks will be winners. No chance. Historically, we recommend winners 60-70% of the time. We stay invested in our winning stocks because winning companies tend to keep winning. (Remember, this isn’t like a horse race; these are actual companies.) Our highest-performing investments -- like Amazon, Netflix, Shopify, Starbucks, and Zoom -- tend to dramatically outperform our lossmakers.
6. Target long-term returns
Investing with us means focusing on the long term. In the short term, anything can happen. Aim to achieve excellent returns over a 5- to 25-year period. Stock market investing is a long-term game that is best played over your entire lifetime. You can build a portfolio over time that is worth millions of dollars, just by consistently investing small amounts. We’re confident that you can win this investing game, and we’re here to help.
We believe that when investors buy at least 25 great stocks and commit to holding them for at least 5 years, they set themselves up to achieve financial freedom. Let great companies work and succeed for you as you make money with us, calmly, methodically, and over your lifetime.
Our goal is to make you smarter, happier, and richer — forever.