If you are an assertive investor who is constantly looking for the perfect stocks to invest in, then the Rule Breakers is the right investing service for you. This service looks for high-growth stocks that the team believes are more likely to yield high revenues and outperform the market for long periods.
The Rule Breakers service prefers companies that can convert a high growth rate into a driving force for cash flow in the long-term. Even more, the team adopts a great investment strategy that follows certain stock selection criteria, which have shown highly effective results for many years.
So, are you interested in Rule Breakers service from the Motley Fool so far? Well, you should be!
Here’s all the necessary information you need to know about this service and why you should definitely opt for it.
About the Rule Breakers
The Rule Breakers is a dedicated stock advising service. It is mainly destined for users who are interested in high-growth investments. When subscribing to the service, you will receive two particular stock picks monthly and get a selection of “starter stocks” too.
The Rule Breakers service has 144% returns compared to 67% returns of the S&P 500.
Since 2009, the Rule Breakers stock picks have performed very well. Take a look at the next chart:
The service has been doing a fantastic job so far. But how does it work?
The Fool site is updated every Thursday when you will get an email with new recommendations:
- One particular New Stock Picks and Recommendation on the second Thursday of every month.
- Five Best Buys Now on the third Thursday.
- New Stock Picks and Recommendation on the fourth Thursday.
Here’s an example the “Best Buys Now” email:
You will receive a new stock recommendation twice a month.
As for the “New Stock Recommendation,” you will get an email with the top pick provided by David and the different members of his team as well as an in-depth analysis. Here’s an example of the email:
You should always be prepared to make purchases once you receive the stock recommendations. That would definitely increase your chances of success. There is a “Fool Effect” where the recommended stock goes up to $2-$3 during the first few hours of the pick’s release.
How Did the Service Perform so far?
As mentioned in the chart before, the Rule Breakers have always beaten the market since 2009. One of the reasons that made this service very profitable on the market is their efficient investment strategy: they pick various stocks that make double or triple increase every year. Here are some examples:
If you had invested $1,000 in every one of these three stocks, you would end up with $60,060!
As long as you are a premium member of the Fool’s Rule Breakers, you will have full access to all the different stocks on the platform.
Compared to the Stock Advisors service, the Rule Breakers is much more volatile because it primarily focuses on growth businesses. It is normal to have higher risks because when these companies are among the most successful businesses on the market. When the stocks get right, the percentage returns rise very high compared to other average-return stocks. However, it might get worse when the stock is wrong.
In fact, during the last three years, the top stock pick percentage return in Rule Breakers is significantly higher than the top stock pick return in Stock Advisor. Also, the lowest stock pick percentage return in Rule Breakers is lower than the worst stock pick in Stock Advisor. But still, the overall performance in the Rule Breakers is pretty amazing and yields high results. On average, about four of the total stock picks are losers, and the winners are far enough to cover up these losses.
The Rule Breakers service focuses on stocks with 6 unique criteria for investing, and it why it has performed so well so far:
- Look for first movers and top dogs in the op emerging industries.
- Look for companies with the maintainable advantage gained via patent protection, business momentum, inept competitors, or visionary leadership.
- Focus on appreciation of past price. Typically, the greatest growth stocks keep rising, and their advantages favor them to maintain impressive revenues and growth of cash flow.
- Seek out smart backing and excellent management.
- Look for companies with solid consumer appeal.
- Focus on grossly overvalued stocks according to the financial media.
With this investment strategy and excellent investing criteria, the Rule Breakers succeeded in pointing out some stocks before they were acknowledged by the investors of Wall Street which turned into highly profitable companies, like Tesla and Baidu.
Rule Breakers Main Options?
In the “Home” tab, you will find all the current stock recommendations and updates. Also, you will find information about the forthcoming schedule for stock picks, overall service’s performance, the most recent articles, and more.
To get more information a specific company, you can click on the logo of its stock. It will re-direct you to the analysis page of Fool premium where you will find out why it is recommended as well as detailed evaluation about the different suggested stocks, from the basics to charts and ratios.
Besides, there is an additional option “Choose what you want to do with this stock,” which allows you to get notified when and why you should buy or sell the stock. These recommendations are provided by the expert team of the Fool’s Rule Breakers. Here’s an example:
In addition, you can pick the stocks you are interested in and put them in “My Favorites”. This will allow you to track these stocks and get notified when to buy or sell them. Also, you will get notified when there is a significant price fluctuation of these stocks.
Alternatively, the performance page shows all the different stocks that were previously recommended during all these years back to 2004 when everything started. You can look for potential stocks to put into your favorites page to get notified about any news. Besides, you have the opportunity to check their ratings regarding their risk and how it is measured.
It is important to note that the Rule Breakers service is very transparent when it comes to the stock recommendations. The team reveals its closed and open recommendations for every user.
Finally, there is a “stop orders” option to control your losses and keep your investment risk low.
You will find various articles and reports in the “Research” category to get to know more about the different investing themes like technology.
Typically, the Fool is recommending the giant tech company Apple in its various services, and they offer other stocks as well that will be influenced by the iPhone’s sales in an indirect way. When you purchase these stocks, you will make a great investing approach that is indirect and more under the radar instead of purchasing shares of AAPL.
Also, the “Rule Breakers Community” is another amazing feature of this service where you will have the chance to share ideas and communicate with the other members of Fool. The discussions flow is pretty interesting, and the different members are always willing to help with sharing information about the stock market. Also, the site has discussion boards to make it even easier to manage and user-friendly. You will unlock this feature when you enroll in the Motley Fool membership, which includes both services Stock Advisor and Rule Breakers as well.
Moreover, when you head to the “About Rule Breakers” section, you will find a lot of valuable information to make the best out of the service. For instance, you will find information on the Fool ratings of risks and how are they defined.
The Current Best Stock Picks in the Rule Breakers
Unfortunately, I can’t share the Rule Breakers top picks of the month publicly because of the Fool’s policy. But I can assure you that you will find various profitable stock picks when you subscribe to the service that will certainly help you generate high revenues.
The Rule Breakers High-Quality Podcast
Podcasts are a helpful way to listen to the latest updates of the stock market while still manage to do other activities at the same time. The Rule Breakers Investing podcast is hosted by the co-founder of the company, David Gardner. He is a popular figure in the community of finance and has been one of the best stock pickers on the market for quite some time. Every week, you will get very beneficial information through the podcasts, where David shares his valuable ideas on the most disruptive and innovative public companies of the day. Besides, you will get handy instructions on how to make the best out of the Rule Breakers Investing principles to help you gain higher profits.
You can check the Twitter page of the Rule Breakers podcast (@RBIPodcast) where David usually responds to the various tweets posted by the users.
The Motley Fool Rule Stock Picks Performance
I have been using the Rule Breakers for four years. First, I bought the two specific recommendations using a virtual trading account. Then, I was so overwhelmed with the initial results that I started purchasing $1,000 of every one of their stock picks the real trading account Etrade.
Here is a chart of the overall performance during these four years (I included my performance in Stock Advisors for comparison):
Here are the results until May 3, 2019:
- From January 2016 to April 2019, I had been buying $1,000 of the two monthly picks, and the total investment of $80,000 had turned to $159,804 with the Rule Breakers, in comparaison to $129,399 with Stock Advice picks.
- In 2016, the picks of Rule Breakers were up to 175% in three years, which is 126% better than the S&P 500. Even more, one of the picks has reached 1156% in returns in 2016.
- The stocks were up 110% from the 24 picks Rule Breakers in 2017. 21 out of 24 are profitable. From 2017, the top winners were TTD and TWLO with respectively up 576% and 347%. During that year, one stock was down 78%, but still, the average return of the different 24 stocks is up 87% better than the S&P 500.
- The 24 stock picks have beaten the market by 33% from 2018. Within these 24 stocks, 16 are profitable. From 2018, the top winners were MDB and AYX with respectively up 317% and 210%. During that year, one stock was down 43%, which still the median return of the 24 stocks is up 33% better than the S&P 500.
- From the beginning of 2019, I have invested in 8 of the stock picks of Rule Breakers. 7 out of 8 are up, and they succeeded in outperforming the market by 6%.
The Motley Fool reduced the subscription price in 2019. Now it only costs $99 per year or $19 per month, compared to the original price of $299 per year in the previous years.
Also, you have the chance to cancel your subscription within 30 days after making the purchase. But I doubt that you would do because the Rule Breakers is totally worth every penny you invest in.
Motley Fool Stock Advisor Vs. Rule Breakers
There are some differences between the two services that depend on the preferences of the investors. But overall, the platform is quite similar for both of them.
Take a look at the performance chart of both services during the last three years.
During this period, the general percentage returns of picks of the Rule Breakers service is significantly higher than the picks of the Stock Advisors service. Even though the Rule Breakers succeeded in picking stocks of more than 500% and 1100%, it did pick larger losers than Stock Advisors as well. If you don’t have the money, aren’t disciplined, and don’t purchase every stock recommended by Rule Breakers, you may miss out some of the best picks of the service.
On the other hand, the Stock Advisor service focuses more on popular stocks, and it is more suitable for the different investors who prefer lower volatility. Compared to the Stock Advisor, the Rule Breakers service focuses more on companies with higher growth potential, and it has much more volatility. So, make sure to choose the right service that matches your risk tolerance. Keep in mind that higher investment risk means higher profits. The best example is the 1156.10% return I made with the Rule Breakers in 2016.
Both of the services offer 12 stocks every month. Also, their management teams are members of the Stock Advisor service. The co-founders David and Tom Gardner provide recommendations and helpful tips in the Stock Advisor, while the Rule Breakers is managed by David Gardner alone.
The Rule Breakers service from Motley Fool, which has beaten the S&P 500 index for more than 15 years, is a very profitable way to invest in individual stocks. I believe that the Rule Breakers is a must-have service for every investor due to its various features and its low-cost subscription fee. Besides, it is recommended to invest regularly to make the best out of the service and generate high profits.