Do You Trust The Motley Fool?

Is anyone a member of the Motley Fool stock picking news letter? Do you believe it is legit or more hype? They claim to have recommended buying stocks like Amazon and Netflix in the early 2000s. Now they are predicting AI will be the next big thing.

Are you interested to get in on it or would you rather invest in something else like real estate?

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Motley Fool Australia
Motley Fool Australia

Comments

  • +15

    predicting AI will be the next big thing

    Well there’s no way it won’t be…

  • +1

    lol

  • +13

    Buy high sell low.

    • +3

      Hey you subscribe to r/wallstreetbets too?!

      • +3

        We’re in October. How’s your pumpkin stocks going?

    • +1

      Turn your fortunes around by going short instead of buying.

      • +1

        my ex said going short was part of the problem :(

    • But how can I sell low if the line only go up?
      t. fellow regard

  • +3

    Those who can, do. Those who can't, make their money teaching.

  • -1

    AI is pushed because hedge funds hold huge positions in big tech. They need big tech prices to pump to use them as collateral and prevent themselves getting margin called on their overall losing positions.

  • +2

    https://www.youtube.com/watch?v=JV9Ob3eB5KY

    https://www.youtube.com/watch?v=crE4pxcgDQQ

    Now they are predicting AI will be the next big thing.

    Why didn't they predict that when Nvidia share price was near $100 one year ago posting $6b revenue back then to now guiding $16b for next earnings.

    • Interesting, the first video on Aussie stocks perform really well over 5 years. But the US stocks did awful during that one year period.

  • +1

    I know a guy, who knows a guy who knows someone who works in a race horse stable. Call me

    • +1

      PM me your number. Sounds great.

      • Yellow pages under plastic math thingys with angles marked on it.
        Don't share (please)
        But about the horse. Goes well.(New paint job) A few blood noses now and then, but he's due a win. Giggidy,giddy up.

  • +1

    I subscribed for a year, around 2006 - 2007. I found I had the same level of successes and failures buying their recommendations as I did doing my own research and buying my own picks so I didn't worry about renewing the subscription.
    Note that they recommended Thorn, Collection House and Retail Food Group in my time with them - but also Adbri, which has really only hit the skids in the last 12 months or so. Transurban was a recommendation I later wished I'd acted on.

  • +7

    Motley Fool aren’t scammers, but are their newsletter picks better than you could do yourself with research? They certainly follow the herd.
    I had their general newsletter years ago, it was ok. I got their yield newsletter off the back of a bargain trial here, and I found it below average (part of that was a market focused on capital gains, so not entirely their fault).

    Their entire business model is to target less sophisticated investors with the idea you can skip the work of investing by paying them. This isn’t true, or at least it is no more true than buying a fund or managed ETF.

    If I had $100 to spend on learning about investing I would subscribe to Money magazine (and read it), read the newspapers, and buy a couple of books (a random walk down wall street and something from Buffet and read them).

    After reading them you will either want to learn more and be an active investor, or leave it to a managed investment like super etc.

    • +2

      The only thing I will say about newsletters in general, is they often give you the impetus to take action - I often see opportunities, or worry about threats and don’t act when I should - waiting for more info. Having a newsletter chime in primes you for action.

      • How about sell recommendations? They said they do those in the newsletter. Are those usually on the money?

        • +3

          Their entire business model is to target less sophisticated investors with the idea you can skip the work of investing by paying them.

    • +1

      You'd likely do just as well picking your stocks by throwing darts.

  • +1

    I will put it this way - I get a free annual subscription to them with my credit card, and don't subscribe. Previous experiences with their newsletter have not been positive.

  • +8

    The best get rich quick scheme is to sell other people “get rich quick schemes”.

    • and then turn THAT in a ponzie pyramid scheme

  • +5

    If you're a subscriber to their newsletter (which, IMO is beyond obnoxious in relation to the sheer volume they send) then you should already know the answer. Their M.O. is mostly marketing spam with an urgent call to action to draw in the novices and the uneducated. But if you're not already a subscriber, you could always subscribe for their free newsletter just to see how much noise they make.

    They're all hype and all marketing for me. I'd never pay a cent to them when there's much better content out there for free.

    • How about if you are short on time? Is it worth buying some of their recommendations and you also get notified when to sell? What better content is free?

      • +1

        If you are short on time, you don't have time to be a stock picker, just stick to ETFs.

  • +3

    They claim to have recommended buying stocks like Amazon and Netflix in the early 2000s

    And how many other stocks have they recommended?
    And how many times have they also said to sell Amazon and Netflix over the years (to take profits, to invest the profits in the next 'Amazon' and 'Netflix').
    If they recommend thousands of stocks, then they are surely to get some right.
    How many losing stocks have they also recommended?
    Your total return is a combination of your winners and losers.

    Look at how they make their own money. They require people to subscribe to their service. If they could continuously outperform, then why would they be selling you anything?

    Its not a total scam, but you are better off just to purchase low cost ETF's, and get the market return (8%-10% in general).

    • Are ETF's low risk or high risk?

      • -1

        It depends on your definition.
        Generally ETF's are considered high risk, but they are less risky than individual shares (such as Amazon and Netflix).

  • Do You Trust The Motley Fool?

    The few times I've looked at this website, it feels like you should do the opposite to what they say!!

    If they say buy, you should sell.

    • +1

      In their email they are pumping Google, IBM, Nvidia. All the obvious AI stocks.

      • LOL Nvidia….. That stock is so over valued at the moment, as soon as the AI buzz wears off, it'll crash hard!

        As for IBM, what is big blue up to these days that makes it a buy?

        • My mistake, it was Microsoft, not IBM.

  • +3

    Recommend 100 stocks.

    Pick the 3 that do best.

    Ignore the rest.

    "Look at how good we are at picking stocks!"

    • I remember a while back a lot of their articles even used to have an automated message at the bottom that said something like:

      CIO Scott Phillips recently divulged his picks for the 5 best ASX stocks to invest in, and ___ wasn't one of them.

      You could tell it was automated, because sometimes it would glitch out if it couldn't find a stock name in the article body text, and would verbatim put that boilerplate response there complete with the gap where the stock name was supposed to be.

      Maybe they're going all-in on AI in the hopes that they can delegate even more of their article-writing to computers.

  • +2

    There is a hint in their name as to their target market.

  • +1

    Inverse Motley Fool and you'll be rich!

  • Now they are predicting AI will be the next big thing.

    I completed my AI masters degree at ANU 35 years ago. They are a bit late.

  • +2

    Everyone of their recommendations I purchased went down in value. Had far better luck with my own picks/ETFs

    • How long did you hold? I noticed stocks can be rubbish over a one year period sometimes but perform really well over a five year period.

      • Wait until they talk up a stock in their free newsletter. It can really move a small cap with low volume.

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