Supernova Explorer 1 Mission Launches!

Motley Fool Supernova launched a new mission today, called Explorer 1, focused on researching a new sector or trend each month and then selecting the best investment from among that group. Motley Fool will invest $20,000 in each of these picks each month, but they are stand alone picks and are not to be considered part of a portfolio. One caveat is that the companies that are eligible for this mission are the same Supernova Universe stocks, which is limited to David Gardner’s picks in Stock Advisor and his picks from Rule Breakers.

From their website:

Explorer 1 is Supernova’s newest mission, a novel approach to unlocking even more great investments from within our universe of stocks. Each month, we turn our focus to a select group of stocks, put them through our rigorous analysis, vote for a winner. You can use these recommendations as an additional source of guidance, as a vote of confidence in stocks you’re following, or as a way to discover opportunities you might have missed…

Our Explorations take you into different parts of the Supernova Universe, investigating a trend or technology, or turning a light on stocks that have a particular trait in common. Many months, we’ll endeavor to uncover opportunities in stocks that aren’t in the spotlight — going deeper into our universe to bring you even more opportunities…

Each month, we study a set of stocks and vote for the one we believe is most likely to beat the market over the next three years. This Discovery is our mission’s official recommendation as a timely stock to buy.

At the end of each Exploration, The Motley Fool invests $20,000 into the winning Discovery stock…

Our mission charter commits Explorer 1 to invest in each winning Discovery stock for a period of three years. At the end of that period, The Motley Fool will sell the stock and use the profits for a prize for Supernova members, or another Foolish distribution, such as a donation to charity…

Emphasis mine on the last sentence. That’s an interesting twist on the mission, and I’ll be curious to see how that plays out 3 years from now, and it would be nice if they donated any profits to a great charity.

I’m intrigued by this new mission. I really like the idea of doing deep dives into different industries and trends, and learning more about individual companies. It will hopefully be a layer of coverage that is not currently available in Supernova, or its related services, Stock Advisor and Rule Breakers. Supernova continues to evolve nicely since its inception, and is becoming a service worth it’s premium price tag (if the stellar performance isn’t enough for you!)

{ 7 comments… add one }
  • John January 22, 2014, 12:57 pm

    What do you think about the $1,500 price tag compared to other “missions?”

    • Kevin January 22, 2014, 11:14 pm

      John the price tag is a premium one for sure but I think you have to take into account the size of your portfolio relative to that fee. If you are only investing $15,000 the price is prohibitive. If you are investing $50,000 it makes a lot more sense.

      • Heather January 31, 2014, 12:15 pm

        So which investing service would you suggest is most productive and useful for small investments…under $20,000?

        • Kevin January 31, 2014, 1:10 pm

          One of the less expensive services might be better. Inside Value gives you buy and sell guidance but no allocation guidance. I just posted a new review page. Stock Advisor is also a classic one to start with but you don’t get the specific valuation guidance as you do for inside value.

          • Heather January 31, 2014, 2:56 pm

            Thanks for your response, Kevin.
            One more…how would you compare inside value to simple services such as etrade or scottrade?

          • Kevin January 31, 2014, 3:27 pm

            Heather, etrade and scottrade are brokerages where you house your money and stocks and can execute trades. They don’t make trade recommendations (outside of research reports they might give you access to). Inside Value is a Motley Fool service that provides investment recommendations but you still need a separate account (such as etrade) to place trades.

          • Heather January 31, 2014, 3:29 pm

            Thank you- that’s exactly what I wanted to know…if inside value provides the brokerage services as well as recommendations and v/v. Thanks so much! (:

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