Motley Fool Rule Breaker Review: Is It Worth It?

Long-term investing is something every investor looks forward to. If you make the right decisions, it can produce thrilling long-term benefits.

This is why we have decided to bring you the Motley fool Rule breaker review.

Motley Fool Rule Breaker is an online site and electronic newsletter provided by the Gardner brothers, David and Tom as one of the tools that help millions of people reach financial freedom.

Since its inception, the Gardner brothers have helped investors make the right choices by providing them with the best stock picks for their money.

Should you join the team?

Read our Motley fool Rule breaker review to find out!

What Is Motley Fool ?

Founded in 1993 by the Gardner brothers David and Tom, Motley Fool is a private financial and investing advice company. Since the 1990s, they have been known for giving practical, unique, and result-oriented investing advice.

Through their website, podcasts, books, newspaper letters, radio shows, and premium investing services, they have helped millions of people reach financial freedom. One of Motley Fool’s popular stock picking services is the Motley Fool Rule Breakers.

What Is Motley Fool Rule Breaker?

Motley Fool Rule Breaker is a stockpiling newsletter for high-growth stocks in emerging or relatively new markets. Launched in 2004 by David Gardner, it aims to help people make the right investment choices by giving them high-growth stock options to choose from. Sounds fair enough right?!

Here, David’s team of stock analysts seek to discover under-appreciated companies with high-growth stocks that have a long-term potential of generating cash.

They recommend two new stocks per month with their analysis which is called “starter stocks” and provide a set of “Best Buys Now”. These are 5 stocks that you are advised to buy with your money now. They also give you “new stock recommendations” which are new stocks in the market

The monthly stock picks are not cheap stocks or fickle commodity stocks. You’re basically investing in small-cap and mid-cap stocks – stocks with a market capitalization between $500 million to $10 billion from companies with high growth potential.

Now you will say, with all these standards how well have they performed. Rule Breakers is more than doubling the S&P 500, with 287% returns vs. the S&P’s 91% since its inception.
They have a high record of having increasing stock price hours after its release. For instance, in less than 1.5 months, The QDEL stock-pick is already up 56%.

How Does The Motley Fool Rule Breaker Work?

Just like other Motley Fool services, Thursday is the important day when you get an email on the “New stock recommendation”. It is important to have your money to purchase as soon as you see their recommendation. This is because, within the first few hours of recommendation, the stock immediately rises to about $2-$3.

They also release their 5 “Best Buys Now” every Third Thursday of the month

What Makes A Rule Breaker?- Investment Strategy.

The Motley Fool Rule Breakers investment strategy is focused on finding hidden gems in the market. Hence, not all stocks are liable to be bought or invested in.

To come up with growth stocks suitable for rule-breakers, David chooses stocks that are under either of these categories.

  • Stocks in emerging countries (e.g. China, India, South Africa, South Korea, Mexico, Thailand, Indonesia, etc)
  • Newly listed stocks on the stock exchange -IPO stocks
  • Stocks in fast-growing and developing industries (i.e. Cyber Security, Big Data, Cloud Computing, 3D Printing, etc)
  • Stocks of future technology companies (e.g. Internet of things, 5G, Artificial Intelligence, Blockchain, etc

Furthermore, companies must also meet a certain standard. There are six unique rule that helps rule breaker make a good pick of companies

  • Sustainable advantage gained through business momentum, patent protection, visionary leadership, or inept competitors
  • Good management and smart backing – it must have a good management team and strong leadership
  • Top dog and a first mover in a vital, emerging industry – it must be an inventive company that is making ground-breaking moves in developing industries
  • Strong consumer appeal i.e. it must have strong branding and strong customer interest
  • Strong past price appreciation – The best growth stocks gradually move to keep growing. David believes that a company that has unlocked a success recipe can continue outperforming for a long timeLine 5
  • Proof that it is overvalued according to the financial media i.e. If an amazing growth company is “too expensive” for the financial media, that may be a sign that Wall Street is just underestimating its transformative value.

Is The Rule Breakers Free? | How Much Does It Cost?

In as much as the goal for Rule Breakers is to help you attain financial freedom, it is not free. Rule breakers cost $99 per year.

The best part is that you can cancel anytime within the first 30 days of your registration and still get a 100% refund.

Don’t rejoice yet, this offer may not be around for so long. So, hurry now and join the extraordinary group of rule-breakers by clicking the button below

Pros And Cons

The benefits of Motley Fool’s rule breaker is evident for all to see. Notwithstanding, there are some parts that don’t sit well with me. Let’s look at them below.

Pros

  • It has a long track record of “beating the stock market”
  • Gives detailed information about the stock you intend to invest in. This helps your research before you invest your money.
  • It gives the users direct access to their expertise and allows them to tap into their knowledge
  • It makes it easier to know the winning investment.

Cons

  • The risk could be too high for some investors
  • Because research and information are given to you easily, you may lose curiosity to keep tabs on your money.
  • It is a very good plan for investors who enjoy diversified investing

Is Rule Breakers Worth It?

Yes, it is worth it. Since the launch of Rule breakers, its sole aim has been to “beat the market”. Undeniably, they have done just that! Looking at their track record proves that the strategy helps them hit the goal.

Some notable stock increase over the years includes Tesla which has gone up to 7001%, Intuitive Surgical, about 5030%, and a lot of others.

Customers Are Saying..

“If I can do it, you can do it. I was able to buy my house because of investments through here. It’s been a life-changing experience for me.” LINDA D. Nashua, New Hampshire

“The first thing is they have to try it. They have to give it a chance for one month. Make the effort, make the commitment, and see for yourself.” MITCHELL S. Guadalajara, Mexico

Still interested in this very different stock investing newsletter? Keep reading.

Who Is Rule Breaker For?

Rule breakers are majorly for long-growth investors with cash to invest as soon as a recommendation comes in. It is not for new investors seeking to gain ground. If you can withstand the fluctuations in stock price, then go ahead with Rule breakers.

Rule Breaker vs. Stock Advisor

The Rule Breaker review isn’t complete without mentioning the Stock Advisor. Since the goal is to “beat the market”, there are two newsletters produced to aid this cause. They are:

  • Rule Breaker
  • Stock Advisor

These two newsletters are very similar. However, the major difference between the two lies in the investing strategy. While the Rule Breaker seeks to sideline the risks and go ahead with investing to produce a big win, the Stock Advisor is very careful in selecting which stock to invest in.

Stock Advisor is your best bet If you’re just looking for a few stocks pick. If you’re looking to expand and diversify your portfolio with a wider range of unique companies, the Rule Breakers plan can unlock a lot of long-term opportunities that you can’t access with the Stock Advisor subscription alone.

From my research, the two options were designed with different methods and intended for a different audience. The most important thing is to find which category of investor you are and which plan best suits your interest.

To find out more about the different Motley plans, visit the official website below.

My Thought On This Is…

This Motley Fool Rule Breakers review helps you if you are a long-term investor with extra funds to invest regularly. Their stock picks are a legit way to successfully invest in individual stocks.

Rule Breakers can expose you to investment ideas you never imagined.

So, get on David’s team and start getting the best investing ideas!

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References

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