Motley Fool Augmented Reality Review
Motley Fool Augmented Reality is a stock-picking service that attempts to uncover innovative tech companies that are set up for massive growth. The service features a portfolio of 28 hand-selected stocks that are set to disrupt the tech industry. Is the service worth paying for? Read our review to find out.
About The Motley Fool
The Motley Fool is a financial news and investment research firm founded in 1993 by brothers Tom and David Gardner. It’s a financial media powerhouse best known for its flagship Stock Advisor newsletter, which has outpaced the returns of the S&P 500 by more than 3x since it launched in 2003.
Motley Fool now runs multiple premium investment services, most of which specialize in stock picking. We’ve written about not only Stock Advisor, but also other popular services from the company like Motley Fool Everlasting Portfolio, Motley Fool Rule Breakers, Motley Fool Options, and Rule Your Retirement.
Today, we’re going to take a look at one of the company’s newer services, Augmented Reality. Augmented Reality is a little bit different from other Motley Fool stock picking services, but it promises the same market-beating returns.
So, is this service worth signing up for? Keep reading our Motley Fool Augmented Reality review to find out.
About Motley Fool Augmented Reality
Motley Fool is known for providing well-research stock picks with a history of beating the stock market. The company’s flagship service, Stock Advisor, offers two new stock picks to members every single month. The Stock Advisor service has been around for more than 20 years and is still thriving.
The company has since launched a handful of new services with unique value propositions. Most of these services specialize in specific types of stock picks.
The subject of today’s review is the Motley Fool’s Augmented Reality service (also referred to as “Rule Breakers: Augmented Reality and Beyond”).
Augmented Reality is a stock-picking service that focuses on the next generation of technology. Specifically, it’s interested in the development of metaverses, virtual reality gaming, AR applications in healthcare, and more.
Motley Fool believes that augmented reality and virtual reality could lead the next wave of technological innovation. The Augmented Reality service is designed to help you find the Amazon, Netflix, or Apple of this emerging tech niche.
The idea is a lot like investing in Amazon in the early 2000s. If you invested $1,000 in Amazon in 2010, your investment would be worth over $20,000 today.
Investing in Amazon might seem obvious now, but at the time, it was just one tech company in a sea of thousands of promising tech stocks. You had to understand how the internet was evolving to be able to pick Amazon out of the haystack.
Now, on the cusp of a new generation of disruptive tech, Motley Fool’s Augmented Reality service seeks to uncover the hidden gems that will deliver explosive returns in the decade ahead.
|📈 Features||Stock Picks|
|📊 Performance||70%+ Lifetime Returns|
|✅ Discounts||$600 Off|
What Do Augmented Reality Members Get?
Augmented Reality is a purposefully simple service with three key offerings:
- Access to Motley Fool’s Augmented Reality Research
- Access to the Augmented Reality Portfolio
- Buy/Sell Alerts for Stocks
Let’s take a look at each of these core offerings.
Augmented Reality Research
Motley Fool is in the business of stock market research. The company’s analysts do in-depth research on a range of augmented reality technology stocks before narrowing down their recommendations to a select few. Once a stock is chosen as a winner, Motley Fool analysts send an alert and a research report to subscribers.
The service’s research reports are cover all of the information you need to know about a company while still being approachable for casual investors. This is one of the areas where the Fool really shines. If you’ve ever combed through financial reports or SEC filings or read through an analyst report, you probably noticed right away how overwhelming they can be. They are loaded with technical writing, jargon, and complex charts.
A research report is only valuable if a) you actually read it, and b) you understand what you are reading. Motley Fool’s research reports check both those boxes. They are easy-to-read and easy to comprehend.
A Motley Fool Augmented Reality research report is generally 1,000-1,500 words and includes the following sections:
- Why the Company Will Be a Leader in Augmented Reality
- Why the Company Is a Good Investment
- Potential Risks
- The Bottom Line
The Augmented Reality research reports are particularly interesting to read since they focus on companies that are shaping the future of technology.
Augmented Reality Portfolio
Augmented Reality subscribers have access to the full Augmented Reality portfolio of stocks. This is a list of all of the current investment recommendations with information about their performance and links to the latest research reports.
Investment recommendations fall under three main categories:
- Leading the Way – These are established companies that you are likely to recognize. They already have a strong footing in the technology industry. They may not be set up for parabolic growth, but they are a bit less risky to invest in since the companies are already thriving. This group of stocks is intended to add a bit of stability to your portfolio.
- Shaping the World – These are the big companies that are currently shaping the world of augmented reality, but aren’t yet household names. They are slightly riskier than the companies “leading the way,” but they may also yield higher returns in the long run.
- Highfliers of the Future – These are the companies with the most potential. They are newer companies that are disrupting their respective industries with augmented or virtual reality applications. Since the companies are new and often have small market caps, they are relatively risk investments. However, they may also provide the best long-term returns.
If you are signing up for the Augmented Reality service, the portfolio is the most valuable resource and the reason to pay for the service. Research reports are great, but most investors just want to know which stocks they should buy, and that’s exactly what you get with the portfolio. When you sign up, you get instant access to 30+ hand-picked augmented reality stocks that are set up for massive growth.
We will analyze the returns of this portfolio later in the review.
The Augmented Reality portfolio is constantly evolving. Motley Fool will issue buy alerts and sell alerts whenever they adjust their recommendations. For example, if analysts discover a great new company, they will issue a new buy alert. If a company in the portfolio is underperforming, they will issue a sell alert.
This service is designed for long-term investors, so alerts aren’t very frequent. There’s typically no more than one alert each month.
Motley Fool Augmented Reality Performance
Now, it’s time to answer the most important question in our Augmented Reality review – how does the portfolio perform?
If you are paying for this service, you are paying for stock picks and you want to make sure those stock picks deliver. While we can’t reveal any of the actual stock picks, we can reveal some interesting statistics about the portfolio.
We will start with the most relevant. The portfolio was launched in June of 2019 and, as of October 2020, returned 69.3%. During that same period, the S&P 500 returned 18.4%, meaning the AR portfolio beat the market by over 50%
Here are some interesting statistics on the stocks in the portfolio as of on October 2020.
- The average market cap is $268 Billion (median:$49 Billion )
- The average stock price at the time of the recommendation is $180 (median: $134.26)
- The lowest priced stock is ~$30
- The most expensive stock is ~$1,000
- The return of the entire portfolio is 69.3%
- 23 stocks have positive returns
- 5 stocks have negative returns
- The average gain is 87.17%
- The average loss is -12.82%
- The biggest gainer is up 406%
- The biggest decline is down 34%
Overall, Augmented Reality offers a well-balanced portfolio that combines both established companies and growth companies. The service’s returns from its first year are impressive.
Motley Fool Augmented Reality Pricing
Augmented Reality normally costs $1,999 per year, but you discounts are available from time to time. When you sign up, you get instant access to all of the resources mentioned above. While the subscription recurs annually, you get a lot of value upfront and you may find that you only need access for one year.
Is Motley Fool Augmented Reality Worth the Money?
Now that you know about Motley Fool’s AR service and the portfolio performance, it’s time to answer the question you likely came to this review for: Is the subscription worth paying for?
We think Augmented Reality is a great service and the portfolio yielded impressive returns in its first year. That said, you don’t just need a great stock picking service, you need a service that is great for you. Every investor has different needs and circumstances so it’s important to make sure you choose the service that best suits your needs.
If you are considering signing up for Motley Fool’s Augmented Reality, consider the following two questions.
Does the Service Line Up with Your Investment Strategy?
Augmented Reality is a specialized service that is suitable for a select group of investors. If you the following criteria apply to you, the service is likely to be a good fit for you.
- You plan to hold your positions for at least 3 to 5 years – Augmented Reality offers long-term stock picks that are likely to experience short-term price swings. Investors need to be focused on the bigger picture and have long-term investment horizons.
- You plan to diversify with at least 12-15 stocks – The power of this service comes from its portfolio structure. Augmented Reality users aren’t looking for one hot stock to put all their money into. After all, when looking for the next big companies of the future, you can’t expect to put all of your eggs in one basket and get it right. The team behind Augmented Reality recommends that you diversify by adding at least 12-15 of the 30+ recommended stocks.
- You are okay with some volatility – The stock market can be volatile. Tech has been particularly volatile due to the sector’s explosive growth. If you are looking for stocks that return upwards of 100%, you can’t let 10-20% swings shake you out of a position. Risk-conscious investors may want to be proactive with risk management (for example, by setting stop losses), but you should understand the volatility you may experience before you invest your money.
If you have a long-term time horizon, are ready to build a diverse portfolio, and can stomach market volatility, the Augmented Reality stock picks will likely mesh well with your investing strategy.
How Much Capital Are You Investing With?
In many areas, value is subjective. In the world of investing, it’s actually relatively easy to gauge the value of an investment advisory service. You’re simply attempting to answer the question, “will this service make me more money than they charge me?”
Fortunately, we have the data to perform that analysis.
We can analyze Motley Fool’s performance relative to the subscription cost. The subscription costs $1,399/year, and the portfolio has returned ~70% over the past year. The S&P 500 has returned ~20%, meaning the Augmented Reality portfolio yielded 50% higher returns.
So, how much are 50% higher returns worth to you? You can run the numbers based on how much money you plan to invest. The following example is intended as an educational experiment and should not be misconstrued as financial advice. You should always talk to a certified financial professional or do your own assessment before purchasing a service.
- If you invest $1,000, the increased returns are worth $500
- If you invest $10,000, the increased returns are worth $5,000
- If you invest $100,000, the increased returns are worth $50,000
Of course, this example is oversimplified to help illustrate the point. Past performance is not indicative of future returns, and the Augmented Reality portfolio’s performance will vary by year (some years higher, some years lower).
The example above is intended to get you thinking about the value of the service relative to your portfolio size. We can apply the same assessment to consider how much the portfolio needs to return for you to break even on the subscription fee.
- If you invest $1,000, the portfolio needs to beat the market by 140%
- If you invest $10,000, the portfolio needs to beat the market by 14%
- If you invest $100,000, the portfolio needs to beat the market by 1.4%
If you are only investing a few thousand dollars, it may be difficult to recoup your subscription fee. You would be better suited with a service like Motley Fool’s Stock Advisor, which is available for only $99 per year. You might also consider Motley Fool Rule Breakers, which has more of a focus on tech stocks than Stock Advisor but still costs only $299 per year.
If you have upwards of $10,000 to invest, the service starts to become more valuable. Keep in mind that while Augmented Reality has only been around a few years, the Fool has a 20+ year track record of beating the market with its other services.
Motley Fool Augmented Reality Review: Final Verdict
Motley Fool Augmented Reality is a unique service that is focused on uncovering the winners of the next era of technology. The service is easy to use and the research is very approachable for casual investors. In keeping with the Motley Fool’s history of strong performances, the Augmented Reality portfolio returned ~70% in its first year.
Technology is likely to continue to be a leading sector for years to come. If you are looking for stock picks that are focused on innovative tech companies, Augmented Reality is a great choice.
Motley Fool Augmented Reality FAQs
Does Motley Fool offer a free trial for Augmented Reality?
Motley Fool doesn’t offer a free trial for its Augmented Reality service. However, every new subscription comes with a 30-day money-back guarantee. Your refund will come in the form of credits that you can spend on other Motley Fool services.
Are Augmented Reality stocks available in Stock Advisor?
Stock Advisor and Augmented Reality are separate stock picking services from the Motley Fool with separate portfolios. It’s possible that both portfolios will include the same stock at the same time, but the portfolios are not designed to overlap. In fact, part of the appeal of the Augmented Reality service is that the stocks it recommends are typically not recommended by other Motley Fool services.
Is Augmented Reality included with Motley Fool Rule Breakers?
The Motley Fool Augmented Reality service was created by some of the same analysts who work on Motley Fool Rule Breakers. However, the two services are distinct and don’t share stock picks.