Motley Fool Rule Breakers Review: Is It Right for You?
What is Motley Fool Rule Breakers?
Motley Fool Rule Breakers is a stock subscription service that focuses on finding high-growth companies. It is one of Motley Fool’s most popular services, and it has a track record of beating the market.
Is Motley Fool Rule Breakers legitimate?
Yes, Motley Fool Rule Breakers is a legitimate stock subscription service. It is owned and operated by The Motley Fool, which is a well-respected financial information company.
Is the Motley Fool Rule Breakers subscription really worth it?
That depends on your investment goals and risk tolerance. If you are looking for a stock subscription service that can help you find high-growth companies, then Motley Fool Rule Breakers may be worth it for you. However, it is important to note that investing in high-growth companies is also riskier.
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Motley Fool Rule Breakers Investment Strategy
The Motley Fool Rule Breakers investment strategy is focused on finding hidden gems in the stock market. These are stocks that are not yet well-known but have the potential to be the market leaders of the future.
The Rule Breakers team looks for five key things in a good growth stock:
- Innovation: The company must be innovative and make waves in an emerging industry.
- Competitive advantage: The company must have a competitive advantage over its competitors, such as patents or proprietary technology.
- Sustainable business: The company must have a sustainable business model and be unlikely to be disrupted by new technology.
- Good management: The company must have a good management team with a strong track record.
- Strong consumer appeal: The company must have strong branding and customer interest.
The Rule Breakers team finds these high-growth stocks in a variety of places, including:
- Emerging countries: Stocks in emerging countries such as China, India, and South Korea have the potential to grow rapidly as these economies develop.
- IPO stocks: Newly listed stocks on the stock exchange can be a good source of high-growth stocks, as they are often companies that are growing quickly and expanding into new markets.
- Fast-growing industries: Stocks in fast-growing industries such as cybersecurity, big data, and cloud computing can be good investments, as these industries are expected to continue to grow rapidly in the coming years.
- Future technology companies: Stocks of companies that are developing new technologies such as the Internet of Things, 5G, and artificial intelligence can be good investments, as these technologies are expected to have a major impact on the global economy in the coming years.
However, it is important to note that investing in high-growth stocks is also riskier than investing in more established companies. High-growth stocks can be volatile and their prices can fluctuate wildly. Therefore, it is important to do your own research before investing in any stock, and only invest money that you can afford to lose.
Rule Breakers Top Stock Picks
Mercado Libre, one of the longest-held Rule Breakers stock picks, operates online e-commerce marketplaces.
The stock can be volatile, but it has risen high overall. Since it first entered the Rule Breakers portfolio, Mercado Libre has gained over 7,850% as of October 18, 2023.
Rule Breakers, which has a keen eye for e-commerce winners, recommended Shopify in October 2023. The stock has since surged over 2,450%, adjusting for a 2022 stock split.
The Motley Fool also recommends:
Airbnb, Alphabet, Booking Holdings, DocuSign, Etsy, Fiverr International, Home Depot, Mastercard, Six Flags Entertainment, Starbucks, StoneCo, Target, and Visa.
Rule Breakers Performance: Outperforming the Market Since 2004
Rule Breakers, a stock recommendation service from The Motley Fool, has outperformed the S&P 500 by more than 224% since its inception in 2004. The service has recommended 131 stocks that have returned over 100%, beating many leading money managers on Wall Street.
Advantages and Disadvantages of Rule Breakers
Rule Breakers Pros:
- Proven winners: These stocks have a history of strong performance, suggesting that they are well-managed and have a bright future.
- Good value: You can currently buy these stocks at a discounted price, giving you the potential to earn even greater returns in the future.
- Beats the market: These stocks have consistently outperformed the S&P 500, suggesting that they have the potential to help you grow your wealth faster.
Rule Breakers Cons:
- Bumpy ride: High-growth stocks are often volatile, meaning that their prices can fluctuate wildly. This can be stressful for investors, and it can also lead to losses if you sell at the wrong time.
- Costly to renew: If you take advantage of the discounted introductory rate, you may have to pay a higher price to renew your subscription or service.
- Not a guarantee: Even the best-performing stocks can experience setbacks, and there is no guarantee that any stock will deliver positive returns.
Overall, the pros and cons of investing in high-growth stocks need to be carefully weighed before making a decision. These stocks can offer the potential for high returns, but they also come with increased risk. Investors should only invest in high-growth stocks if they are comfortable with the volatility and are willing to hold their investments for the long term.