Motley Fool Performance – August 2016

Motley Fool Performance – August 2016
4.17 (83.33%) 12 votes

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Here are the latest performance stats for all the Motley Fool services, since their inception. Returns are calculated using the official methodology of each service, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

Special Ops and Deep Value Update

Note that due to the shuttering of both the Deep Value and Special Ops services, this is the last month I’ll be able to provide updated performance stats for them.

in Performance

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Better Late Than Never: Special Ops and MDP Deep Value to Shut Down
5 (100%) 1 vote

After years of dismal performance, the Motley Fool has announced that it is shutting down both their Special Ops and MDP Deep Value services.

It’s about time.

I’ve been calling for them to give Special Ops and MDP DV the “old yeller” treatment for a while now. I think I first officially put them on a death watch back in February of 2014. Then in January 2015 they announced some big changes at Special Ops (and the removal of Ron Gross from the Million Dollar Portfolio lead advisor role) which I likened to rearranging chairs on the Titanic.

A scant 20 months later, they are pulling the trigger.

The announcement email sites poor performance and declining member participation, and the shut down will occur in the next few weeks:

In the coming weeks, we’ll be shuttering the dedicated websites for these services, including their discussion boards and coverage, and the advisors will no longer be making real-time trade alerts or maintaining the services’ online portfolios.

Performance has definitely been terrible. When I first mentioned the death watch for Special Ops in 2014, their average total returns were trailing the S&P by -68%. Little did I know that would be their high-water mark, and performance only got worse from there. When they announced their changes a year later, it had fallen to -87%. For the last 5 months (and 8 of the last 10), they’ve been below 100%. In their most recent month, they hit an all time low of -110% below the S&P. Even worse than their performance relative to the S&P was the fact that their absolute average returns were negative or near 0 for 10 of the last 12 months.

MDP Deep Value followed a similar death spiral with February 2014 performance vs. the S&P at -27% also their high-water mark, and their most recent month at -90%. While the absolute returns were strongly positive, in the last 12 months those returns plummeted to the single digits.

Beyond performance, I think the biggest problem is that the methodologies of these 2 services were entirely outside the strengths of the Motley Fool philosophy, which is basically different flavors of long term buy and hold investing. As I said in my prior post back in January 2015:

I think that’s the problem with this type of investing. In theory these severely undervalued or misunderstood investments will one day unlock their value and you’ll make a lot of money. The problem is that hedge funds and private equity firms have armies of high paid analysts searching for the same opportunities. I don’t think the Motley Fool can consistently compete with those types of resources on this playing field where it’s not about long term, buy and hold investing, where you can beat the hedge funds just by holding on longer. This is about identifying the opportunities early and getting in on the investments before every one else catches on. How many times can Motley Fool do that – enough to produce that long term accuracy they are now focusing on? I’m not convinced they can.

Seems that I was right (if only I could have this kind of foresight with all my investing!).

Motley Fool One members will continue to have limited access to the services via the MF One Fool IQ tool, which is their in-house stock screening tool and will allow them to see what stocks those advisors are watching or recommending, as well as updates on the active recommendations in both Special Ops and MDP DV. In my view this is really just a way to quietly wind the services down entirely, and throw a bone to the high-paying One members who might have been following those services.

Although I’m sure a shock to the small number of fans of this service, this is absolutely the right decision. Hopefully, Motley Fool will instead focus on their strengths, and better utilize the resources that were dedicated to these two services. For anyone looking for a replacement for these services, I would suggest Inside Value, which also follows a value-investing approach, but actually performs consistently well.

in MDP Deep Value, Special Ops

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Motley Fool Performance – July 2016

Motley Fool Performance – July 2016
4 (80%) 10 votes
Motley Fool July Performance

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Here are the latest performance stats for all the Motley Fool services, since their inception. Returns are calculated using the official methodology of each service, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

in Performance

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Motley Fool Performance – June 2016

Motley Fool Performance – June 2016
3.8 (76%) 5 votes
Motley Fool Performance Stats

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Here are the latest performance stats for all the Motley Fool services, since their inception. Returns are calculated using the official methodology of each service, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

in Performance

{ 4 comments }

Motley Fool Performance – May 2016

Motley Fool Performance – May 2016
5 (100%) 2 votes
Motley Fool Performance

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Here are the latest performance stats for all the Motley Fool services, since their inception. Returns are calculated using the official methodology of each service, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

in Performance

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Motley Fool Performance – April 2016

Motley Fool Performance – April 2016
4 (80%) 4 votes
Motley Fool Performance

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Here are the latest performance stats for all the Motley Fool services, since their inception. The returns are calculated using the official methodology of each of the services, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

in Performance

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Motley Fool Performance – March 2016

Motley Fool Performance – March 2016
4.5 (90%) 4 votes
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Here are the latest performance stats for all the Motley Fool services, since their inception. The returns are calculated using the official methodology of each of the services, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

in Performance

{ 7 comments }

Motley Fool Performance – February 2016

Motley Fool Performance – February 2016
4.43 (88.57%) 7 votes
MF Performance Stats - 2016-02Feb

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Here are the latest performance stats for all the Motley Fool services, since their inception. The returns are calculated using the official methodology of each of the services, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

in Performance

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Motley Fool Performance – January 2016

Motley Fool Performance – January 2016
3.2 (64%) 10 votes
Motley Fool Performance

Click to Enlarge

Here are the latest performance stats for all the Motley Fool services, since their inception. The returns are calculated using the official methodology of each of the services, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

 

2016 Stumbles Out the Door and a New Supernova Portfolio

The Market has not been pretty so far this year with the S&P down -5% through January, and not surprisingly the Motley Fool services almost all stumbled as well. Income Investor and Pro were the only services that actually improved (technically Special Ops did as well, but at -100% performance since inception, I’ve written it off as dead). Good to see Pro’s hedges and diversified investment strategies providing some protection against the down turn.

Supernova Phoenix is notable for the -38% month over month drop, not because it was the service with the biggest drop (Supernova Odyssey grabs that prize at -46% month over month) but because it’s been billed as a portfolio for retirees and those near retirement age. That’s not the kind of volatility I’d want to see if I were in that demographic, so if you are, beware.

Finally, you’ll notice the addition of the Odyssey 2 portfolio, which is the next generation of the Odyssey portfolio concept meant for those who are investing on a regular basis. It just started in January and is underperforming the S&P already, but it’s early days for the portfolio so we’ll see how it looks a year from now. My concern is that they are spreading their analysts too thin in Supernova, and instead use some of their members as official advisors. They did this with the original Odyssey and Phoenix (and Phoenix 2) portfolios, and while the original portfolios have had success, and there are some extremely bright investors among their membership, I think there is a limit to how far they can take that strategy.

in Performance

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Motley Fool Performance – December 2015

Motley Fool Performance – December 2015
3.2 (64%) 15 votes
MF Performance Stats - 2015-12Dec

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Here are the latest performance stats for all the Motley Fool services, since their inception. The returns are calculated using the official methodology of each of the services, per the Motley Fool site.

If you like these posts, share with a friend, and rate the content by clicking on the stars above. You can sign up via email (in the right sidebar) to get instant notifications when my monthly performance stats are updated. You can follow me on Twitter too at @motleyfoolrview.

And of course, leave a comment below and let me know what you think.

Check the Performance category to see all my performance posts.

in Performance

{ 10 comments }