I’ve been using premium services for investors offered by the Motley Fool and writing about my experiences with the company’s resources, stock picks, investment advice, and tools. So when I write about these, I do it from a unique position–I’m not an expert in picking stocks and I do not invest for a living.
In other words, I am a lot like a typical reader who is looking for good information about such investment tools. That means I’m not interested in a bunch of hyperbole (like you get from a lot of blogs) talking in general terms without offering any specific useful advice.
So when I review the services of a company like those provided by Motley Fool, I have my B.S. detector on. Is the company feeding you a line of over-optimistic crap in hopes that you’ll join an endless hit parade of suckers being parted with their money? Or does the advice you get ring true?
Motley Fool Premium Services For Investors: Advice And How-Tos
Some might assume that signing up for premium services at a company like Motley Fool means you are an experienced investment pro and that newcomers needn’t bother. But this is not true–among the offerings you will find at Fool.com? A LOT of advice aimed at people looking for information to get started or to evolve from a starter investor. And is that advice any good?
Fool.com instructional material includes the following line;
“It might surprise you to learn that a $10,000 investment in the S&P 500 index 50 years ago would be worth nearly $1.2 million today. Stock investing, when done well, is among the most effective ways to build long-term wealth.”
In the same way there are warning signs from scam artists (promises of risk-free investing is one), there are indicators you are dealing with a reputable and pro-consumer company. This particular statement is telling (in a sort of “are they a scam or not” way) because while the statement is technically true, what they DON’T do is try to intimate that all investors can achieve this.
How Serious Investment Advice Is Supposed To Work
The Motley Fool identifies itself as a serious investment education platform by urging consumers to avoid risky investments or investment strategies that have no protection against loss of capital through diversified portfolios, smart buy-and-sell strategies, etc.
How does Motley Fool “prove” itself as a reputable source of sound investment advice? It’s all about how the company encourages investors to adopt best practices that are commonly used by investors to make sound decisions about how they use their money.
One of the most basic and important pieces of investment advice you can get from any company? You should plan your investments consistently and in a manner that suits your style. Some people don’t have the time to do a lot of research on an individual stock.
Others love analyzing them and have the inclination to run the numbers. Some (like me) hate all the math. All of this is extremely relevant to your investment strategy–you don’t want to get wrapped up in doing complex math or lengthy research? You want to avoid certain investment approaches that require all of that. It really can be that simple.
Motley Fool advice encourages you to examine issues like these–not just the stocks and their performance, but also your own “investment personality” to see what is right for you. Doing so is a crucial part of being an informed investor and making the smart choices.
I’ve done the legwork on Fool.com so you don’t have to; what I mean by that is that for those who are worried that the investment advice there might be scammy, poorly thought out, or just plain inaccurate, you can rest assured that Fool.com’s advice is excellent for anyone who wants to begin or continue investing in stocks.
Joe Wallace specializes in personal finance, military affairs, and consumer protection topics. Since 1995, his work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and collects unusual vinyl records, which gives him an excuse to write the vinyl blog Turntabling.net.