Motley Fool Supernova: Truth in Advertising

With Supernova opening its membership again recently, the Motley Fool marketing machine is at full blast. One of the charts they’ve included in their marketing materials for Supernova is the following chart, touting their very successful recommendation of Apple.

Source: The Motley Fool

Source: The Motley Fool

Impressive indeed. A great recommendation.

However they did not mention one of their worst performing picks: Westport Innovations, one of the first picks of the Odyssey portfolio. Westport was heavily touted back in early 2012 as one of their top stock recommendations. But it hasn’t faired nearly as well as Apple. So I’ve included my own view of that recommendation history.

Source: Google Finance

Source: Google Finance

 

Motley Fool Marketing must be stopped!

I’m a fan of Motley Fool, and recommend their services in general, but I’ve talked a lot about how spamerrific their marketing is. In fairness to the advisors over at Supernova, they’ve owned up to what a mistake the Westport recommendation turned out to be. And as a whole, the Supernova performance has been pretty strong. But before you sign up for any of their services, including Supernova, make sure you understand the whole story. No investing service is perfect, and every investor will have their share of losses, including some that tank like Westport has.

 

 

{ 1 comment… add one }
  • David December 13, 2014, 3:49 pm

    Kevin, thanks for the follow up. One comment about joining SuperNova is that perhaps there should be a change in recommendations with time. So while you show Odyssey 1 with a positive performance, I joined in Feb 2014 and it’s a net loser (about 1%), taking out Apple. (I’m not counting that since I, like most of the rest of the world, already had AAPL) So buying in at a different date than the beginning leads to a different level of underperformance. Of course buying WPRT in 2/14 wasn’t as bad as buying in 2012 but I bought it and lost anyway. I just did not have time to look at each of the stocks in the portfolio; in retrospect it may have been dumber. Maybe there’s some way of reflecting this different performance based on when one got in. But TMF also COULD change their recommendations from “buy” to “hold” and let newcomers have a different view than those who come in at inception. I appreciate your valuable service.

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