The Motley Fool

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Motley Fool
MotleyFoollogo.png
Type Private
Founded July 1993
Headquarters Alexandria, Virginia, United States
Founder(s) David and Tom Gardner, and Erik Rydholm
Slogan(s) To Educate, Amuse & Enrich
Website http://www.fool.com
http://www.fool.co.uk
http://www.fool.com.au
http://www.fool.ca
http://www.fool.com.sg

The Motley Fool is a multimedia financial-services company that provides financial solutions for investors through various stock, investing, and personal finance products. The Alexandria, Virginia-based private company was founded in July 1993 by co-chairmen and brothers David and Tom Gardner, and Erik Rydholm, who has since left. The company employs approximately 200 people.

The Business[edit]

Investment advice[edit]

The Motley Fool offers a wide range of stock news and analysis at its free website, www.fool.com, as well as through a variety of paid investment advice services. The services, many of which combine a traditional paper newsletter with interactive electronic discussion boards and other tools, cover a range of styles from small caps to international stocks, to options, to shorting.[1]

Mutual funds[edit]

In June 2009, Motley Fool Funds launched its first mutual fund, Motley Fool Independence Fund.[2] As of early 2014, the fund (FOOLX) had significantly lagged broad market indexes (such as the Russell 2000).[citation needed]

In November 2010, Motley Fool funds launched Motley Fool Great America Fund. As of early 2014, the fund had outperformed the Russell 2000 and the most popular low-cost ETF tracking the Russell 2000, the iShares Russell 2000 (IWM).[citation needed]

In November 2011, Motley Fool funds launched Motley Fool Epic Voyage Fund. As of early March 2014, the return of the S&P 500 had been double that of the Epic Voyage Fund.[citation needed]

History[edit]

The name "Motley Fool" is taken from Shakespeare's comedy As You Like It.[3][4]

In August 1994, brothers David and Tom Gardner parlayed their one-year-old investment newsletter into a content partnership with America Online. The Motley Fool gained renown for its early recommendations of stocks, such as Amazon.com, America Online (AOL), Amgen, eBay, PayPal, and Starbucks, and was featured in a cover story for Fortune magazine (1996) about the emergence of online interactive discussion as a new form of investment research.[citation needed] In April 1997, the site was moved from AOL to the Fool.com website,[5] and a UK site, Fool.co.uk, was established.[citation needed]

Motley Fool content is available to the public on Fool.com and fool.co.uk, and in its Motley Fool Money podcast and nationally syndicated newspaper column. The Gardners have written several bestselling books on investing, most recently the New York Times Best Seller Motley Fool Million Dollar Portfolio, published in December 2008.[6] Their third book, Rule Makers and Rule Breakers, was published in 2000.[7] Their best-known book, The Motley Fool Investment Guide, was in 2003 called the "#1 All-Time Classic" by investment club members of the NAIC.[citation needed]

During the financial crisis and the dot-com bubble collapse in 2001, the company, in common with its peers, ran into trouble, resulting in the loss of 80% of the staff in a series of three layoffs and the closure of its nascent operations in Germany and Japan. Following the 2000–2002 stock market downturn, Motley Fool started to cover more strategies, such as a range of investment styles from small cap stock investing to growth and technology stocks, to dividend investing.[citation needed]

A December 2005 Washington Post article detailed the Motley Fool's 10-year lease for new offices in Old Town Alexandria, Virginia, taking over office space vacated by Time-Life.[citation needed]

In September 2006, the company unveiled its newest offering, Motley Fool CAPS, a service that monitors and ranks the most successful stock pickers amongst its members.[citation needed]

In 2011, the company launched Fool Australia,[8] followed in 2012 by Fool Canada[9] and Fool Singapore.[10]

In 2013, the UK company reported a £1m loss on sales of £2m.[citation needed]

Premium services[edit]

Motley Fool Stock Advisor[edit]

In April 2002, the company launched the first of its premium subscription services. David and Tom Gardner pick one stock each month in a brotherly competition to best each other and the S&P 500. They maintain a consistent buy-and-hold style, tending to let their winning stocks compound returns over longer periods of time. As of January 2014, their average returns on the stocks recommended is 148.52%.[citation needed]

Others[edit]

  • Motley Fool Champion Shares Pro (UK)[citation needed]
  • Motley Fool Hidden Gems - Small cap stocks[citation needed]
  • Motley Fool Income Investor - A newsletter focusing on high yield stocks[citation needed]
  • Motley Fool Inside Value - A newsletter for value investors[citation needed]
  • Motley Fool Million Dollar Portfolio - A managed portfolio of $1 million of The Motley Fool's own money[citation needed]
  • Motley Fool Million Dollar Portfolio 360 - A service that combines access to the Million Dollar Portfolio with access to most other newsletters[citation needed]
  • Motley Fool Million Dollar Portfolio Deep Value - Concentrated portfolio for Value investors[citation needed]
  • Motley Fool One - Allows subscribers to view all the newsletters in one place[citation needed]
  • Motley Fool Options - An options recommendation service used in conjunction with investments in securities[citation needed]
  • Motley Fool Pro[citation needed]
  • Motley Fool Rule Breakers - David Gardner and a team of analysts choose mid-cap companies they see as using disruptive innovation to change the marketplace[citation needed]
  • Motley Fool Rule Your Retirement - Retirement planning advice[citation needed]
  • Motley Fool Share Advisor (Australia)[citation needed]
  • Motley Fool Share Advisor (UK)[citation needed]
  • Motley Fool Special Ops[citation needed]
  • Motley Fool Supernova - Gives subscribers access to a team of analysts building a portfolio of David Gardner's stocks. This service consists of three portfolios: one for regular wage earners, another for people nearing retirement, and a third portfolio which pits baskets of stocks against each other in a battle to see the "best of the bunch". Returns on the Odyssey portfolio were 64.7% growth after 20 months (as of February 2014)[citation needed]

Community discussion boards[edit]

The Motley Fool hosts online discussion boards to help participants make better financial decisions. Registered users can get access to all non-newsletter boards that cover a variety of stock, personal finance, and investing concepts. The discussion boards are used heavily to recruit future Motley Fool staffers; frequent posters are first awarded free subscriptions to their favorite Motley Fool newsletters then eventually receive a small stipend and "TMF" username moniker to patrol the boards. Some veteran posters have gone on to found investment newsletters and hedge funds of their own, for example Stephen Bland in the UK, who launched The Dividend Letter in 2008.[citation needed]

Blog Network[edit]

The MF Blog Network is a stock analysis and news site that provides a platform for non-Motley Fool staff writers to submit articles. They receive compensation ($50) for each article submitted and additional compensation for how many recommendations or "editors picks" they receive.[citation needed]

The Foolish Four[edit]

In 2000, Motley Fool ran into controversy with its eventually discredited Foolish Four investment theory.[11] The theory had been constituted squarely on the shoulders of the Dogs of the Dow analysis popular at the time. In the same year, Motley Fool writer Ann Coleman admitted that the Foolish Four method "turned out to be not nearly as wonderful a strategy as we thought."[12]

See also[edit]

References[edit]

  1. ^ "Motley Fool". Fool.com. ]
  2. ^ "New mutual fund is both motley and foolish". Marketwatch.com. Retrieved 2013-09-12. 
  3. ^ Harold Bloom & Pamela Loos (2007). As You Like It. p. 10.  "Indeed, after meeting Touchstone, Jaques wants to change his own life, to take on the life of a motley fool himself."
  4. ^ William Shakespeare (2004). DUKE SENIOR. Why, how now, monsieur! what a life is this, That your poor friends must woo your company? What, you look merrily! JAQUES. A fool, a fool! I met a fool i' th' forest, A motley fool. Sparklesoup Classics. p. 23. 
  5. ^ "About The Motley Fool:History". Fool.com. Retrieved 2013-09-12. 
  6. ^ David Gardner & Tom Gardner (2008). Motley Fool Million Dollar Portfolio. 
  7. ^ David Gardner & Tom Gardner. The Motley Fools Rule Breakers Rule Makers : The Foolish Guide To Picking Stocks. ISBN 9780684857176. 
  8. ^ "About Us - Fool Canada". Retrieved 13 May 2013. 
  9. ^ "About Us - Fool Australia". Retrieved 13 May 2013. 
  10. ^ "About Us - Fool Singapore". Retrieved 13 May 2013. 
  11. ^ "Dogs of the Dow and the Foolish Four". Investorhome.com. Retrieved 2013-09-12. 
  12. ^ "Fool Four Moves On". Fool.com. Retrieved 2013-09-12. 

External links[edit]