The Hulbert Financial Digest recently named the Motley Fool Inside Value, Rule Breakers, and Stock Advisor newsletters as the best performing investment newsletters out of the more than 200 newsletters that it tracks. The Wall Street Journal did a full write-up (subscription required), but those services took the top 3 spots based on average annual returns over the last five years of 18%, 16%, and 15% respectively. The overall market returned only 7.2% during that same time (in this study the Wilshire 5000 was the benchmark).
The article makes the point that all 3 services have different investing approaches (with very few overlapping stock selections), but the common theme among them is a focus on investing in quality companies and a long term, buy and hold approach.
The fact that Motley Fool took the top 3 spots is really very impressive, and a testament to their approach. Congratulations to them and the team on such great performance. Not all of their newsletters have performed as well (or even earned a positive return), but Hulbert points out that 5 of the 6 Motley Fool investment newsletters that he currently tracks have beaten the Wilshire 5000. It should be pointed out however, that Motley Fool had several model portfolios in the 90’s that underperformed that benchmark according to Hulbert, so there is a little bit of survivorship bias at play there.
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