The Motley Fool Canada is one of the most popular financial newsletters in the country. And just like Hardbacon, they’re on a mission to help Canadians get smart about money. What sets them apart? The Motley Fool Canada is heavily focused on stock market picks and investing advice. But they didn’t stop there. The Motley Fool offers an extensive roster of personal finance resources ranging from how-to-budget to stock trading tips, and everything in between. Their niche caters to those who want to take control of their investing journey. So if you’re ready to level up from investing zero to hero, The Motley Fool Canada could be the MVP your portfolio needs. Let’s take a look at everything The Motley Fool Canada has to offer, so you can invest like a Fool without getting screwed.
The Motley Fool origin story
The Motley Fool origin story is a joke. In 1993, brothers Tom and David Gardner unwittingly created The Motley Fool newsletter when they ran a series of newspaper ads promoting a fake sewage-disposal company. It was an April Fool’s joke meant to teach people a lesson about penny stocks. The stunt caught the attention of The Wall Street Journal and The New Yorker.
The media buzz and widespread attention inspired the brothers to publish a book called the Motley Fool Investment Guide. It quickly landed on the bestseller lists of both The New York Times and Bloomberg Businessweek. The book’s wild success led to the launch of Fool.com, and The Motley Fool website was born.
The Motley Fool started with an advertising-based business model but pivoted to a subscription-based model in 2002. By 2012, The Motley Fool came to Canada, setting up shop at Fool.ca. Today, The Motley Fool serves almost 1,000,000 subscribers worldwide.
So what do 1,000,000 people know that you don’t? Fools make more money. What started as a joke in the US has now grown into a household-name stock-picking service. According to their website, their Canadian Stock Advisor subscription service has outperformed the S&P/TSX composite benchmark by more than 300%.
Do Fools rush in where fund managers fear to tread? Au contraire. Instead, The Motley Fool subscribers get access to stock picks based on in-depth financial research. So if stock picks are based on professional market insight and fundamental analysis, why the foolish name?
Oddly enough, it has nothing to do with their original April Fool’s joke. The Motley Fool derives its name from a classic Shakespearean character; the court jester who could speak truth to power and challenge conventional wisdom without losing his head. In true jester fashion, The Motley Fool Canada delivers pithy and facetious investing advice. They cut through the noise with humorous market insight you can take to the bank.
The Motley Fool Canada stock pick home-runs
Is The Motley Fool Canada legit? The proof is in the pudding. The Motley Fool Canada has an incredible track record and is one of the most transparent stock advisory sites out there. Their award-winning analyst team has outperformed the market by about 300% on average. So what are some of their most iconic stock picks? When Wall Street scoffed, Fools rushed in on:
The Motley Fool Canada stock pick strike-outs
Of course, picking only winning stocks is easier said than done. In fact, most stock pickers actually lose money. Does The Motley Fool Canada always get it right? Of course not. But they have a hell of a batting average. Even the pros swing and miss.
The Motley Fool doesn’t hide their mistakes. When they make a call, they track the performance on their website. In the investing section, you’ll find articles that look back on their best and worst stock picks. In fact, their top stock analysts routinely write articles and produce podcasts assessing the performance of their past picks: the good, the bad, and the ugly. A great Motley Fool article to read is a round-table discussion of their analyst’s most embarrassing investing moments, the bad calls they made, and lessons learned.
Every year, Motley Fool co-founder himself, David Gardner, talks about his worst stock picks. So what are some of their most recent strike-outs? Below are some of their worst calls, so if you don’t recognize the company, well, that’s because it was a flop.
- Hawaiian Holdings
Invest like a Fool
Despite some major stock strikeouts, The Motley Fool Canada Stock Advisor subscription service historically outperforms the S&P/TSX composite index. So what’s the secret to their success? They’re not flipping stocks to earn a quick buck; this isn’t a day trading service.
The Motley Fool Canada looks past the short-term price volatility of a stock, and into the heart of a company. They’re in it for the long haul, choosing companies with strong business fundamentals and long-term growth potential. Their professional analysts make recommendations based on in-depth research, fundamental analysis, and their belief in the future of a company.
If you want to invest like a Fool, they advise following these investing principles:
Buy at least 25 Motley Fool stock picks
The Motley Fool believes in diversification. According to them, a well-diversified stock portfolio should hold 25 to 30 different stocks. If a few tank, it won’t hurt as much. And with their track record of winning stock picks, you’re likely to have more than just a few winners.
Invest for the long haul
The Motley Fool isn’t meant for day trading. If you want to make the most of their stock picks, they recommend holding them for at least five years. The longer your investment time horizon, the more time you give a company to grow and share its profits with you.
Whether you dollar cost average or invest what you can afford when you can afford it, the key is to do it consistently. The Motley Fool recommends using new money to buy stocks, rather than selling what you currently have to buy others. An easy way to do this is to buy some stock every payday.
Hold on for dear life
Market volatility is the nature of the beast. Historically, those who hold their stocks through market downturns make more money than those who panic sell. Many successful investors do the opposite of what everyone else is doing; when markets are down, they buy more of their best-performing stocks while they're are on sale.
Hold on to your winners
The cardinal rule of Foolish investing? “This isn’t like a horse race; these are actual companies.” The Motley Fool picks companies they believe in. Their past winning calls like Amazon and Shopify, are industry juggernauts still going strong. Hold on to your winning stocks and let them keep making money for you. You’re more likely to enjoy long-term wealth accumulation, and their strong performance will make up for the losers.
It’s a marathon, not a sprint
Investing is a risk. Stock picking is even riskier. That’s why The Motley Fool is in it for the long run. They recommend holding stock picks anywhere from five to twenty-five years, emphasizing that longer is better. It gives companies the chance to grow and make money for you and it gives you time to recover from market downturns. And as always, the longer you are invested, the more you benefit from the compound effect.
Stock Advisor paid subscription
Are you ready to get Foolish with your money? Right now, The Motley Fool Canada has over 70,000 subscribers; people just like you are already paying for insider stock picks. Their award-winning Stock Advisor service has generated an average of over 100% returns at the time of writing. For $299 a year, here’s what you get:
- Two new stock picks: each month their team of professional analysts will recommend one Canadian and one American stock pick
- Best Buys Now: five recommended best stocks to buy right now chosen from over one hundred and fifty stocks
- Starter Stocks: their stock recommendations for starting a portfolio
- Community and investing resources: exclusive insider access to educational resources and community support
- Members-only forums: exclusive access to groups, discussions, and message boards
- Historical data: you’ll be able to see market data on their past stock picks, winners and losers
- 30-day money-back guarantee: if you cancel your subscription within the first thirty days, you’ll get your membership fee back.
Should you subscribe to The Motley Fool Canada Stock Advisor?
Look, we aren’t going to pretend The Motley Fool Canada is the Babe Ruth of stock picking. They get it right about 60% to 70% of the time. But when they do, they knock it out of the park. And a 70% batting average is Hall of Fame stats.
Are you ready to step up to the plate? Well, that depends on your appetite for risk and your goals. If you’re ready to take more control of your investing journey, The Motley Fool Canada is a great tool to help you get started.
Math is my jam, but stock research makes me go cross-eyed. They’ve done all the nitty-gritty research so you don’t have to. You get the luxury of picking stocks without having to spend hours combing through white papers and financial statements. For newer investors, that process can be incredibly overwhelming, especially if you don’t know what to look for or how to interpret data.
Do people really make money with Stock Advisor? Yes. Do people lose money with Stock Advisor? Also yes. Every investment comes with risk. The Motley Fool Canada stock picks are no exception. Their stock recommendations are heavily researched, but no one has a crystal ball; buy at your own risk. Having said that, their stock recommendations historically outperform the S&P/TSX composite index. So if you’re ready to take your investment journey to the next level, The Motley Fool Canada gets the green light from Hardbacon.
Compare dozens of Canadian Online Brokers platforms and find the one that best suits your needs
About The Author: Heidi Unrau
Heidi Unrau is the senior Finance Journalist at Hardbacon. She studied Economics at the University of Winnipeg, where she fell in love with all-things-finance. At 25, she got her first bank job as an entry-level teller. She moved up the ranks to Credit Analyst, Loans Officer, and now a Personal Finance Writer. In her spare time, you'll find her hiding in the car listening to Freakonomics podcasts, or binge-watching financial crime documentaries with a pint of Häagen-Dazs. When she's not chasing after her two little boys, she's in the hot tub or arguing with her husband over which cash back card to use for date night. She’s addicted to coffee, crypto, and obsessively checking her credit score on Borrowell.
Fun Fact: Heidi has lived in five different provinces across Canada, loves her free Tangerine bank account, and will never cut back on Starbucks. Like ever.
More posts by Heidi Unrau