Hi:
I'd like to get some feedback on the Motely Fool newsletter "Champion Funds". All my investments in non-taxable accounts are in index funds, which I was able to pick with a little bit of research myself (r2iclub helped in a big way, thanks!). I would like to consider some managed funds for my taxable investments, but I'm simply overwhelmed at the number of choices out there. So, I was wondering if anyone has tried this paid service from Motley Fool (at $149 a year, it's not exactly cheap) and if it really helped you make a choice. Or, is it just a lot of fluff and not much new information ? TIA.
Need opinion on Motley Fool Newsletter
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puneri_punter
- Posts: 161
- Joined: Thu Feb 01, 2007 11:15 pm
Need opinion on Motley Fool Newsletter
I have been a long time big fan of Motley Fool becuase of what they preach. However you need to approach their newsletters with caution.
I have tried almost all their paid newsletters and services.
Without any doubt Champion Funds is the worst!!
I would not recommend it at all. You are better off indexing.
On the other hand I like "Hidden Gems" and still subscribe to it. This newsletter focus on small-cap stocks and can greatly enhance you ability to make the correct picks.
If you want to stick to Mutual funds, I would recommend Financial Engines. This is also a paid service. But then again it overwhemling recommends Vanguard Index Funds (no surprise) :emwink: .
I have tried almost all their paid newsletters and services.
Without any doubt Champion Funds is the worst!!
I would not recommend it at all. You are better off indexing.
On the other hand I like "Hidden Gems" and still subscribe to it. This newsletter focus on small-cap stocks and can greatly enhance you ability to make the correct picks.
If you want to stick to Mutual funds, I would recommend Financial Engines. This is also a paid service. But then again it overwhemling recommends Vanguard Index Funds (no surprise) :emwink: .
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Desi_by_Nature
- Posts: 772
- Joined: Mon Feb 19, 2007 8:57 pm
Need opinion on Motley Fool Newsletter
i have never subscribed to Champion Funds, but i did subscribe to "Hidden Gems" once and thought it was great.
If you're a serious investor and have a few thousand $$ every year to invest in what they tell you to then that $149 is really nothing and will pay for itself in no time.
If you're a serious investor and have a few thousand $$ every year to invest in what they tell you to then that $149 is really nothing and will pay for itself in no time.
Need opinion on Motley Fool Newsletter
thx for the feedback, guys.
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doesntMatter
- Posts: 82
- Joined: Tue Feb 13, 2007 4:45 pm
Need opinion on Motley Fool Newsletter
I have used Bob Brinker's newsletter for fund selection and market timings and have benefitted from it. (DISCLAIMER: I have no referal fee and do not gain in any way by this recomendation). He publishes his moves in monthly newsletters and newsbulletin and the performance of his model portfolios. He does not recomend regular trading, hence not for ppl looking for some action.
Need opinion on Motley Fool Newsletter
Just my personal opinion.
I've never been a fan of Motley Fool. Somehow these folks seem overly interested in selling their products to the readers. Almost every article they have on the website connects the article to one of the paid products they have. I dislike this type of promotion and makes me feel that I am reading some spam email.
Another thing I've noticed that they play around with numbers to inflate their %gains compared with S&P. For example, on their website they claim the following gains compared to S&P:
[HTML]
Our Performance S&P
Stock Advisor 73.39% 31.32%
Hidden Gems 52.96% 22.64%
Champion Funds 34.83% 20.74%
Income Investor 32.28% 22.87%
Inside Value 26.12% 19.69%
Rule Breakers 21.65% 16.25%
[/HTML]
Looks like they are comparing with S&P to their convenience taking the optimal time period. If they were comparing all to the same time period - say last one year - then all %tges under S&P column would have been the same. :mad:
Back in 2005 I took the free trail of their Hidden Gems newsletter... two stocks they recommended back then still remain hidden :D - those were CULS and REDE... even after two years those are not going anywhere - infact performing poorly than S&P. It might be inappropriate to judge them by just couple of recommendations - but then as I said its my personal opinion and first impressions go a long way.
Good luck with their newsletters and I'd say definately use the trial period before you give them your hard earned $$$.
I've never been a fan of Motley Fool. Somehow these folks seem overly interested in selling their products to the readers. Almost every article they have on the website connects the article to one of the paid products they have. I dislike this type of promotion and makes me feel that I am reading some spam email.
Another thing I've noticed that they play around with numbers to inflate their %gains compared with S&P. For example, on their website they claim the following gains compared to S&P:
[HTML]
Our Performance S&P
Stock Advisor 73.39% 31.32%
Hidden Gems 52.96% 22.64%
Champion Funds 34.83% 20.74%
Income Investor 32.28% 22.87%
Inside Value 26.12% 19.69%
Rule Breakers 21.65% 16.25%
[/HTML]
Looks like they are comparing with S&P to their convenience taking the optimal time period. If they were comparing all to the same time period - say last one year - then all %tges under S&P column would have been the same. :mad:
Back in 2005 I took the free trail of their Hidden Gems newsletter... two stocks they recommended back then still remain hidden :D - those were CULS and REDE... even after two years those are not going anywhere - infact performing poorly than S&P. It might be inappropriate to judge them by just couple of recommendations - but then as I said its my personal opinion and first impressions go a long way.
Good luck with their newsletters and I'd say definately use the trial period before you give them your hard earned $$$.
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puneri_punter
- Posts: 161
- Joined: Thu Feb 01, 2007 11:15 pm
Need opinion on Motley Fool Newsletter
#7,
What you are saying is true. As I had said in my original post, you need to approach their newletters with caution. MF is after all a for-profit company. For advertisement they or any Mutual Fund Company will pick a benchmark that shows them in most favorable light.
For comparison, MF (esp Hidden Gems), assumes you bought the S&P on the same date as their recommendation, over a period of time how would you have done. Therefore the S&P Returns are not the same because the time periods are different.
For example, lets assume you had two accounts. In Account 1, every month you bought what MF recommended. In Account 2, every month you bought S&P. At the end of one year you can compare ROI for Account 1 and Account 2. The Gain in Account 2 may not be the same as S&P gain for that year because we have bought S&P every month. This in my opinion is a much better comparison that comparing blindly with one year gain of S&P.
What you are saying is true. As I had said in my original post, you need to approach their newletters with caution. MF is after all a for-profit company. For advertisement they or any Mutual Fund Company will pick a benchmark that shows them in most favorable light.
For comparison, MF (esp Hidden Gems), assumes you bought the S&P on the same date as their recommendation, over a period of time how would you have done. Therefore the S&P Returns are not the same because the time periods are different.
For example, lets assume you had two accounts. In Account 1, every month you bought what MF recommended. In Account 2, every month you bought S&P. At the end of one year you can compare ROI for Account 1 and Account 2. The Gain in Account 2 may not be the same as S&P gain for that year because we have bought S&P every month. This in my opinion is a much better comparison that comparing blindly with one year gain of S&P.
Need opinion on Motley Fool Newsletter
Desi_by_nature: i'm looking at mututal funds mostly, at this time. when I'm ready to venture into individual stocks, i'll probably give "hidden gems" a shot.
shoonya, agree with your assesment of their advertisments. It's quite annoying to read through an article only to find out that it's nothing but a glorified sales pitch. I was hoping that their champion funds newsletter would be useful, I'm probably going to take a free trial and go from there.
puneri, I thought they simply compared each of their portfolios with the S&P 500, exactly since inception.
How about the Morningstar premium service? Has anyone tried that ? They seem to be offering access to all their analyst reports for a nominal fee. That's the other option I was thinking about.
shoonya, agree with your assesment of their advertisments. It's quite annoying to read through an article only to find out that it's nothing but a glorified sales pitch. I was hoping that their champion funds newsletter would be useful, I'm probably going to take a free trial and go from there.
puneri, I thought they simply compared each of their portfolios with the S&P 500, exactly since inception.
How about the Morningstar premium service? Has anyone tried that ? They seem to be offering access to all their analyst reports for a nominal fee. That's the other option I was thinking about.