Motley Fool Pro (what am I missing here?)
Motley Fool Pro: 63,340 are interested, but only 1,360 can join.
I'm sure you've seen this at least a thousand times now, just like I did.
So, please help me figure out what am I missing here:
Motley Foll is asking for $2,000 for a one year subscription or $3,000 for 3 years - I get this part.
But when I look at the scorecard on Fool's front page, I see that Motley Fool Pro has returned 40.60% since its inception vs. S&P 500's return of 40.70% during the same time frame.
I don't know what is wrong with my math, but it looks to me like they are asking people to pay them $2,000 a year to match (or slightly underperform) the market's performance!!!
Please help. What is it that I'm missing here?
If you look at the above mentioned scorecard of all Motley Fool services, you see that some of them are outperforming the market while some of them are underperforming it (Hidden gems must be really well hidden). Nothing unusual.
Motley Fool vs. S&P 500Our Service Our Return S&P 500 Stock Advisor
81.68% 22.08% Hidden Gems
14.40% 79.90% Rule Breakers
42.35% 15.60% Income Investor
13.89% 5.10% Inside Value
16.43% 12.78% Million Dollar Portfolio
-2.20% -1.60% Pro
But if you calculate the average of the returns from both columns, you get 29.59% return for MF and 24.94% return for S&P 500. That's 4.65% outperformance for Motley Fool vs. the market.
Unfortunately, that's not 4.65% per year (which would be really nice). This is 4.65% for a period of 10-12 years or so (not sure when their first service was started).
So once again, what is it exactly they are asking people to pay for (through yearly subscriptions)? To pay them so they can outperform the market 5% in 10 years? (And how much those subscriptions cost a year, multiplied by 10?)
What am I missing here again?
I know I sure am as I get these e-mails telling me how David called this amazing 20-bagger, and Tom called that incredible 15-bagger (maybe it was vice versa, I'm not good with names), and how they advised their subscribers to get into this ABC stock right before it gained 281% in a year, etc.
I just know it must be me as 63,340 interested people can't be wrong. It just can't be that somebody is asking you to pay for something you can get for free.
Have one more favor to ask.
Do you ever receive e-mails from Motley Fool talking about their recommendations of Pacific Sun or Satayam Computer and other of their picks which eneded up being 70% - 100% losers of your capital? Or the ones talking about how they recommended MAKO at $30-40, a stock you can buy for $12 today. Or how they recommended NFLX to be your core stock when it was at $300, which you can now get for $80?
Unfortunately, I don't get them. If you do, please let me know what do I need to change in my e-mail security settings as my SPAM filter must be blocking them from my inbox. Never got one.
Luckily, I do get all of their e-mails like "10 stocks to retire Rich", "27 stocks to quadriple your money", "43 stocks you can't afford not to invest in NOW!", it's just the "XYZ stock 60% cheaper than when we recommended it" kind of e-mails that I don't get.
Your help with this will be highly appreciated.
Fool on fools, and don't forget to sign up for Motley Pro. You will never again have a chance to match market's return for less.