I’ve been writing about my experiences using Motley Fool stock picks and Fool Premium services and one thing that I’ve been meaning to get to about all this has to do with a commonly asked question outsiders to the platform (and often outsiders to investing in general) have. Why pay to use Motley Fool services when they provide FREE stock tips?
Motley Fool Free Stock Picks
On the landing page for the Motley Fool Stock Advisor (before login, not after), there they are; a group of “our fortune-building stock picks” which include Amazon, Costco Wholesale, and Gilead. Here is a group of Fool-recommended stock tips right there on the free page waiting for anyone to come along and decide to give those stocks a try, too.
And there is certainly nothing wrong with investing in those companies based on the recommendations of the Motley Fool official site. But what one learns about these free stock picks makes it obvious why a current or future investor might want to get a bit more serious about stock picks and investing advice in general.
Sometimes You Get What You Pay For
From a certain perspective, taking your Motley Fool stock picks for free from what is offered outside the paywall is a bit like some of those job search websites like Glassdoor.com or the LinkedIn job boards.
Sure, you might find a very interesting listing that has a lot going for it whether jobs or stocks, But the problem is that the job or stock opportunity listed is listed for the entire world to see and competition will be INCREDIBLE.
The advantage to paying for stock tips that are behind a paywall? That advantage might be fairly obvious after the example above–your ability to get information that the general public does not have the same kind of access to makes your investment potential greater for the simple reason that you aren’t competing with the rest of the world for the same investment.
Get in on a wave of interest early and you may reap the rewards. But what happens if you have to fight a big wave of people all vying for the same stock? And especially if a group of those people aren’t experienced investors? You start to get the idea that making stock decisions based only on free information (or information from only one free source) might not provide you with the entire picture.
Sometimes it pays to shell out for professional advice. Experienced investors making stock recommendations are never right 100% of the time, but experience in the stock market is worth its weight in gold and if you are new to the marketplace it is a good idea to try to understand the perspectives of these professionals and why they choose the stocks they pick.
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.