Do you want to be a great investor?
Well, just pick companies that go up in the stock market instead of down.
It’s that simple.
Everything revolves around a single number of value that fluctuates as the company navigates the business and struggles to turn a profit.
In fact, as an investor, you don’t have to win with every stock.
You won’t win with every stock.
Fortunately, you only have to be slightly better than 50%.
You may have a single stock in your portfolio that does super well and doubles in value over a few years.
However, that will probably be canceled out by a different stock that does terribly and tanks over a few years.
The third stock, a stock that either goes up slightly or down slightly, is the difference maker that determines whether you’ll be grabbing a vacation or working a few extra years.
Well, you’ll need a way to beat the market.
What is the Motley Fool?
David and Tom Gardner started the Motley Fool in the early days of the internet burst, the 90s.
Their goal was to help investors find great stocks before they hit it BIG.
Their goal was to help investors be just a little better than 50% so that they could make a bunch of money.
Today, the Motley Fool runs a full suite of podcasts, webpages, and stock predictions.
It’s a full-service stock advising machine that helps people beat the market.
Their newsletter, “Stock Advisor,” has over half a million subscribers.
These guys claim that if you’d been picking stocks just based on the Stock Advisor, you’d beat the market by 382% to 91% over the lifespan of the newsletter.
Want more information on Stock Advisor?
Is it worth it?
You can check out our surprising review of the service.
David Versus Tom
Both David and Tom started the Motley Fool, and they both submit their separate picks to the Stock Advisor newsletter.
And while they get equal credit for being brilliant investors who have started a wildly successful stock-picking machine…
…David is the slightly better stock picker (so far).
David Gardner’s stock picks for the Stock Advisor have outperformed his brother’s picks by a wide margin.
Tom’s Stock Advisor picks have beat the S&P 500.
Tom’s picks have gained 161%, while the S&P 500 has only gained 95%.
And as good as this sounds, David has done even better.
David’s Stock Advisor picks have gathered momentum amounting to 548% over the same amount of time.
If you were only picking David instead of Tom, you could beat the market by a lot more.
We bought a subscription to Motley Fool’s incredibly popular Stock Advisor service over four years ago to figure out just how good the stocks picks were.
Over that time, David picked high-performance stocks like AMZN, NFLX, DIS, BKNG, and SHOP.
All of those picks that were just listed have shot up over 1,000% in the timespan after he picked them.
David usually finds one stock each year that has an incredible performance.
Plus, if you get in on the ground floor when he recommends, you stand to make a lot of money.
The Motley Fool now also runs The Motley Fool Rule Breakers which is just for David’s picks.
Since Rule Breakers has launched, the picks have more than doubled the gains that the market saw.
*** Alert: SPECIAL UPDATE **** Here are 3 reasons why we love the Motley Fool:
1. On January 2nd of this year I received the email below from the Motley Fool recommending Tesla (TSLA). On that date, the stock was at $425. TSLA released strong earnings on January 29th and has gone up huge every day since. As of 10:30 am ET on February 4 the stock is at $865. It was even up $130, Feb 3rd. After a strong earnings release on January 29th, TSLA stock is now UP $440 or 103% in the 4 weeks since they recommended it!
2. Then on January 23, 2020 the Motley Fool sent out an email saying Amazon (AMZN) was rated as their BEST BUY when the stock was at $1880. On January 31 the stock closed at $2008 after releasing strong earnings the day before, up $138 in one day!
3. Yes the virus has scared the market and global markets are down. But that is GREAT NEWS when you want to buy stocks because now they are just on sale! You never want to pay full price for anything so
David Gardner Stock Performance (Since 2016)
Not convinced yet?
Here are some highlights from David Gardner’s stock picks over the last few years, since 2016.
While it doesn’t give you an idea of just what the averages are, we’ll take a look at those below.
For now, just think what it would’ve meant to have any of these individual stocks in your portfolio.
- January 2016 pick of PLNT is up 519%
- February 2016 pick of SHOP is up 1,502%
- March 2016 pick of SHOP again is up 1185%
- Sept 2016 pick of TEAM is up 323%
- October 2016 pick of RMD is up 160%
- Nov 2016 pick of ETSY is up 230%
- Nov 16 pick of UI is up 251%
- January 2017 pick of TWLO is up 255%
- Feb 2017 pick of TREX is up 161%
- Feb 2017 pick of TTD is up 667%
- March 2017 pick ov VEEV is up 204%
- May 2017 pick of TTD again is up another 411%
- January 2018 pick of AYX is up 361%
- Nov 2018 pick of GH is up 109%
- January 2019 pick of SKX is up 61%
- Feb 2019 pic of GH is up 58%
- March 2019 pick of ROKU is up 159%
- June 2019 pick of NVCR is up 51%
- Sept 2019 picks are up 21 and 2%
- Oct picks are up 22 and 25%
- Nov 2019 picks are up 4 and 10% already
David Gardner vs. The S&P 500
Now, those are some hand picked stocks from the last few years that have way outperformed the market expectations.
While that isn’t perhaps the best statistical sample for you to see how well David Gardner’s stocks are performing, let’s compare David’s picks to a better sample.
The S&P 500 is a collection of 500 of the largest companies that are listed on the stock exchange.
A stock that plays the S&P 500 bets on all of these companies as a collective, which gives you a nice, stable stock that should give returns.
Here’s how David’s picks compared to the S&P 500 over the last few years:
- 2016 picks are up 194% as an average vs. the S&P 500 being up 59% since 2016
- 2017 picks are up 107% as an average vs. the S&P 500 being up 32% since 2017
- 2018 picks are up 41% as an average vs. the S&P 500 being up 18% since 2018
- 2019 picks are up 19% as an average vs. the S&P 500 being up 9% since 2017
Look at those stats!
If you had just been picking the full set of David Gardner’s stocks instead of the S&P 500 you would have exponentially more money since 2016.
While the gains are marginal in the short run, it turns into huge amounts of money over just a few years.
Now, extrapolate this data out a few years into the future.
If you buy some of David’s stocks now, there’s a pretty good chance that you could make a ton of money off of them!
If you had his 2016 picks in your portfolio now, in 2020, you’d be well on your way to a huge payday.
Investing in his current stocks for just a few years could pay huge returns.
Motley Fool Stock Advisor Summary
Here's What You Get:
- Two brand new stock recommendations and analysis per month delivered in real-time to your email.
- on the first Thursday of the month there will be a new stock recommendation from Tom Gardner
- on the third Thursday of the month there will be a new stock recommendation from David Gardner
- Access to all of the Motley Fool's Stock Advisor recommendations they made in 2019, 2018, 2017 and 2016.
- The Motley Fool's Top 10 Best Stock to Buy RIGHT Now report that features some of their recent picks that still offer the best potential return.
- on the second Thursday of the month Tom will release his New Best Stocks to Buy Now
- on the fourth Thursday of the month David Gardner will release his Top 5 Stocks to Buy Now
- The Motley Fool's Top 5 Starter Stocks report that features the ideal stocks that should be the foundation of new investor's portfolios.
- 24/7 Monitoring: They will let you know when they believe it's time to sell any of their stock picks
- Toll-free customer service. Yes, real people answer the phone.
- You also get:
- A clear explanation of WHY they recommended each stock and the factors considered
- A Risk Profile that explains the upside and downside of every stock pick
- Starter Stocks: If you are just starting a portfolio, they will tell you their 10 rock-solid stocks that should be the foundation of your portfolio
- Fool Knowledge Base: 24/7 access to their full library of reports and research to help you get their opinion on other stocks that you might own or be considering buying
- Market News Updates: They keep you informed of all noteworthy news and trends in the investing world.
How Much Does It Cost? The normal price is $199 a year. No commitment. Cancel any time. However, they constantly run pricing promotions for new customers like "TRY IT FOR JUST $19" and "50% OFF for New Subscribers."
How to Get David’s Picks Each Week
The best way to stay up to date with David Gardner’s stock picks and market analysis, you should do what we tell you to do…
…and subscribe to the Motley Fool Rule Breakers services.
Usually the service is around $300 a year, but usually there are also deals and promotions that allow you to jump in for 50% off or at a lower monthly rate.
Follow this link to the Motley Fool Rule Breakers and you’ll get to see the latest promotion that they are running!
You should be able to try the service for quite a bit cheaper than the full price.
Usually they are also running a deal that allows you to take advantage of a 30-day cancellation period.
You’ll get a full refund and they give it to you without you having to explain yourself!
If you aren’t ready for the full service, you can check out David’s podcast, the Rule Breaker Investing podcast.
We’ve found that Gardner has beaten the S&P 500’s performance for every single 5-stock set that he recommends over the period of a year.
The podcast is a great way to get into the game without paying for the entry fee.
If you like the podcast and appreciate David’s approach, then you can get the full service to take full advantage.
5 of David’s 2019 Picks and How They’re Doing in 2020
Let’s take a look at 5 of David Gardner’s stock picks from early in 2019.
We’ll see why David chose the stock in the first place, how the stock performed over time, and where the stock currently is in 2020.
David’s podcast gives you a look into the services that they offer.
These 2019 picks are from the January 23rd podcast, “5 Stocks Shrouded in Mystery.”
We’ve selected this podcast at random so that you can see how you would’ve done if you’d listened to a random podcast and bought those stocks on David’s advice!
Pick #1: Carter’s (CRI)
Carter’s, with the NYSE index of CRI, is a children’s clothing company that has a bunch of stores.
They have multiple brands of clothing and have been around for a while.
It’s pretty likely that your parents bought clothing from Carter’s, and you may have done so for your own kids, and you kids might do so for their kids, and so on.
The company has been around, and David thought that it would stay around for a while.
The company has hundreds of stores and does a lot of international business, and also was a forward player in the e-commerce space.
They also have been pretty realistic about the future of retail and the ecommerce world.
They’ve been focusing on closing under-performing stores and driving more traffic online.
When David ran the podcast, the day of the show Carter’s was trading for $78 a share.
How is Carter’s Doing in 2020?
As of today (1/21/2020), Carter’s is worth $110.38 a share.
That means that the stock went up by a good bit, by more than the market average for stocks.
The company has been successful in it’s closing of stores and the outlook for Carters looks solid.
Pick #2: Ellie Mae (ELLI)
At the time of the 2019 show, Ellie Mae (ELLI) was trading for $69.
The company runs the Encompass Mortgage platform, which a lot of industry leading mortgage lenders use to originate loans and lower costs.
The Encompass platform is a big deal.
The stock went down quite a bit over the course of the months prior to David picking it, but he thought that it was under-performing at the time and that it would bounce back.
A few weeks before David’s show, Ellie Mae said that it was going to move to the Amazon Web Services platform.
David thought that this would be a good move and that the stock had a lot of potential.
How is Ellie Mae Doing in 2020?
Well, this is a bit of a tricky question.
If you look up ELLI right now you’ll see that the stock isn’t worth any money right now, because the stock no longer exists.
But this isn’t because it crashed or because Ellie Mae went bankrupt, it is because the company was acquired.
If you had sold the stock when the Motley Fool Stock Advisory recommended that you sell before the acquisition, you would’ve made out with $98.99 per share, which is about a 50% increase in the original stock price at the time of the podcast.
So while we’ll call this a definite win for David, it certainly has a bit of an asterisk on it because your growth potential is capped at the time of the acquisition.
Pick #3: IPG Photonics (IPGP)
IPGP is a NASDAQ company. IPG Photonics was started by a Russian immagrant who now lives in the United States, and he’s got a long history of building companies that do really well.
He has built a ton of intellectual property that is moving the industry toward fibre lasers instead of different kinds of lasers.
Basically, he owns a better version of lasers that people are buying.
Now, David loved this stock because it had lost about half of the value that it had in the summer of 2018.
Which, for him, made it a bargain in the early days of 2019. At the time that the podcast was running you could’ve picked up IPGP for about $128 a share.
How is IPG Photonics Doing in 2020?
David once again made a solid pick.
If you had turned off the podcast and immediately made a trade for IPGP, you’d have seen your stock increase from $128 to $144.85 over the course of 2019 to where it sits currently.
It’s not a bad stock, and might even go up from where it is. IPG Photonics looks like a great long term pick that David could’ve gotten you in early on.
Pick #4: Mercadolibre (MELI)
Mercadolibre is something that David called in the podcast “one of my favorite companies.”
The stock was worth a solid $349 when David recommended that you buy it. What is MELI?
Well, it is the e-commerce leader of Latin America.
David thought that the emerging middle class in Latin America was going to continue to watch Mercadolibre grow with it.
He recommended that you go in and go in fast on MELI.
How is Mercadolibre Doing in 2020?
Suppose you listened to David’s podcast and thought to yourself that MELI sounded like a great bargain.
It represents something of the Amazon of Latin America.
Suppose you put all your money into this single stock?
Well, as of today (1/21/2020), MELI is trading for $658.46 a share, which would mean that you’ve almost doubled your money in a single year!
Now that’s a great stock pick.
Pick #5: Planet Fitness (PLNT)
When David told you to buy Planet Fitness, the gym phenomenon that is banking on relatable branding and cheap membership fees, the stock was trading at $58 a share.
The wellness space is continuing to boom, and David thought that one year ago, despite the rise of boutique fitness and hipster wellness, PLNT would be able to rise through the trends and be a solid bet.
How is Planet Fitness Doing in 2020?
PLNT has gone up from $58 a share the day that David recorded this podcast to $78.90 a share today (1/21/2020).
That means that if you bet on Planet Fitness like David recommended, you’d have made decent returns on your stock.
So how much is a subscription to the Fool's Rule Breaker service?
The Rule Breaker service is usually $299 a year, but there is a special sales page for new subscribers. They frequently run special promotions like "50% OFF" and "TRY IT FOR JUST $19." So if you are a new subscriber, click THIS LINK and you can try it for just $19 and see their latest sales promotion.
And, there is a 30 day cancellation period for a full refund.
Results of David’s 2019 Picks in 2020
Every single one of David’s Rule Breakers picks from the January edition of the podcast made money almost a year from the date that he picked it.
While one stock is no longer trading, if you continued to follow Fool advice, you’d have gotten out with some nice earnings.
The other 4 stocks are showing no signs of slowing down.
If you got in on MELI early in 2019, you would have doubled your money by this time this year!
Needless to say, David has a knack for picking great stocks and a crack team of analysts to back up the moves that he is advising.
If you pick David’s 5 stocks from an early edition of rule breakers from this year, you might see some great returns for 2021.