Motley Fool Everlasting Stocks Review – What Does This Service Offer?

UPDATE: Motley Fool Everlasting Stocks is no longer a standalone service offering. It may be purchased as part of the Motley Fool Epic. Read our Motley Fool Epic review here or check out the service here.

About Motley Fool Everlasting Stocks

Everlasting Stocks is one of the newest stock picking services from The Motley Fool. It’s run by some of the same analysts who run Motley Fool’s flagship Stock Advisor service, which has outperformed the S&P 500 by more than 3-to-1 over the past 20 years. However, Everlasting Stocks takes more of a holistic portfolio approach to help long-term investors build a strong and diverse set of stock holdings.

In our Motley Fool Everlasting Stocks review, we’ll take a closer look at everything this stock picking service offers. We’ll also compare Everlasting Stocks against Stock Advisor and Rule Breakers, another popular Motley Fool stock picking service.

Motley Fool Everlasting Stocks Pricing Options

Motley Fool Everlasting Stocks costs $299 per year. It comes with a 30-day money-back guarantee in case you try out the service and aren’t thrilled with it.

You can also get access to Everlasting Stock through the Motley Fool’s Epic Bundle. This bundle costs $499 per year and includes the Everlasting Stocks, Stock Advisor, Rule Breakers, and Real Estate Winners services.

Motley Fool Everlasting Stocks Investing Style

Everlasting Stocks has a similar investing style to The Motley Fool’s other stock picking services. It’s mainly focused on long-term growth stocks that Motley Fool’s analysts think will be disruptive within their industries. Everlasting Stocks intends for investors to hold onto stock picks for a minimum of five years.

A significant portion of the stocks that Everlasting Stocks recommends are in tech or are tech-adjacent, since this is where a lot of growth is currently happening in the market. However, the service also recommends stocks from the financial industry and even from industries with major physical footprints like logistics and theme parks.

Compared to Stock Advisor and Rule Breakers, Everlasting Stocks aims to help investors build a more cohesive and diverse portfolio. The idea is that the Everlasting Stocks portfolio will be less affected by a downturn in a single industry, like tech, than the Stock Advisor and Rule Breakers portfolios are.

However, it’s difficult to say how true this is in practice. The Everlasting Stocks portfolio is currently heavily exposed to the tech sector. The Everlasting Stocks dashboard tracks portfolio allocation by sector, but analysts don’t really discuss diversification much when explaining why they recommend particular stocks.

Stock Pick Format

Everlasting Stocks issues two new stock recommendations per month, usually one week apart. Each new recommendation is ready to buy. You don’t need to wait for a specific entry price or look for a trigger. Once the recommendation is released, you can buy the stock anytime within the next few days (or longer if there are no significant changes in the market).

For investors who want to know more about what they’re buying and why, the Everlasting Stocks team releases a short research report with each recommendation. This report includes a summary of what the company does, why Motley Fool analysts think it’s potentially disruptive, and what the company’s risks are. There aren’t any details that you could use to run a detailed fundamental or financial analysis, but the research report is nice for understanding the basic thesis behind a stock pick.

You can view all current stock picks in the portfolio in an interactive table. This enables you to see when positions were recommended and how they’ve performed relative to the S&P 500. You might notice that some stocks appear in the portfolio twice. This is because Everlasting Stocks will re-recommend companies that the service is exceptionally bullish about, particularly if the stock’s price has recently dropped and investors have a chance to double-down at a discount.

Everlasting Stocks has been around for less than five years, so the service has only closed a few positions so far. When it’s time to exit an investment, the analyst team will send out an update to subscribers letting them know to sell and offering a brief explanation why.

Motley Fool Everlasting Stocks Additional Features

In addition to the twice-monthly recommendations, Everlasting Stocks offers a list of 10 ranked stocks that investors can buy right now. All 10 stocks come from the Everlasting Stocks portfolio. This list can be very useful if you have some extra cash to invest and don’t want to wait until the next recommendation comes out.

Motley Fool Everlasting Stocks Performance

Everlasting Stocks launched in September 2018. Between then and February 2023, the service has returned 4.59% compared to 11.45% for the S&P 500.

Before you judge this service too harshly, keep in mind that Everlasting Stock picks have a minimum investment horizon of five years. The service isn’t yet five years old, and its tech-heavy portfolio was significantly impacted by the 2022 tech downturn. Four picks have returned more than 100% and one – Tesla – has returned more than 1,000%.

One thing to keep in mind is that Everlasting Stocks, like other Motley Fool stock picking services, isn’t always great at dumping losing picks. Five picks have lost more than 80% of their value, and one of these picks – Upstart – was re-recommended twice. Seeing Everlasting Stocks double- and triple-down on a losing stock isn’t promising, although you can easily limit your losses by adding your own stop losses to the service’s recommendations.

What Type of Investor is Everlasting Stocks Best For?

Everlasting Stocks is designed for long-term investors who want to invest in disruptive growth stocks. You should have at least a five-year investment horizon to get the most out of this service. In addition, you’ll want to have a portfolio of at least $5,000 and ideally $10,000 or more to make the cost of the service worthwhile. 

Investors can use Everlasting Stocks while doing very little of their own research, but we’d recommend adding your own stop losses when you buy into picks. If you want to pick and choose what stocks to invest in, you can use Everlasting Stocks’ top 10 ranking list to generate ideas and find investment opportunities.

Motley Fool Everlasting Stocks vs. Stock Advisor and Rule Breakers

Everlasting Stocks is closely related to Motley Fool’s Stock Advisor and Rule Breakers services. So, is it worth using Everlasting Stocks over these other services?

You can read our full Everlasting Stocks vs. Stock Advisor comparison here. Here’s a quick summary.

For anyone new to Motley Fool, it makes more sense to go with the flagship Stock Advisor service than with Everlasting Stocks. You’ll still get two stock recommendations per month and a monthly list of the top 10 stocks to double down on. However, Stock Advisor also offers a list of 10 “foundational” stocks that you can use to launch a new portfolio. At $199 per month, Stock Advisor is also a little bit cheaper than Everlasting Stocks.

There’s a lot of overlap between Stock Advisor and Everlasting Stocks picks, so the services aren’t fundamentally different in terms of what you’ll be investing in.

If you already have a Stock Advisor subscription, adding either Rule Breakers or Everlasting Stocks gives you access to more stock picks each month. Here, it’s a bit of a toss-up as to which service is better. Rule Breakers is a little more tech-heavy than Everlasting Stocks, but there’s a fair amount of overlap in the recommendations.

For an extra $50 per year, you could buy The Motley Fool’s Epic Bundle and get all three services plus Real Estate Winners. This is a good option if you want a lot of stock picks as well as real estate stock ideas to diversify your portfolio.