Can investing be a lucrative game? Brothers David and Tom Gardner founded the online investment advisory service, The Motley Fool, in 1993 to help people become better investors while having fun doing it. 20 years later their Stock Advisor growth and value portfolios have beaten the market by a wide margin.
We’ll talk with “Head Fool”, Co-Founder and CEO, Tom Gardner, about their unusual approach and impressive track record.
WEALTHTRACK Episode #1111; Originally Broadcast on September 05, 2014
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TOM GARDNER
Tom Gardner
Co-Founder & CEO
, The Motley Fool
Since our founding ten years ago WEALTHTRACK’s mission has been to help you and us build financial security through long-term diversified investing. We have carefully chosen our guests to make sure they are among the best in the business, based on their philosophy, process, performance, appraisal by independent sources, peer recognition and reputation for integrity. We also have to like them. There is a no jerks rule here at WealthTrack!
We know that technology has radically changed investing. We have access to more news and financial information than ever before… For better or worse we can respond to it instantly and much more cheaply. But has it made us better investors?
20 plus years ago two brothers, David and Tom Gardner took advantage of new technology, the internet, and started an online investment service called The Motley Fool. Their goal: to make their audience better investors. I have known about The Motley Fool for years, friends and family members were subscribers. But The Fool was not on my radar screen because I don’t pay a lot of attention to stock advisory services. I mostly talk to mutual fund managers whose portfolios and performance I can track over periods of years.
So why am I making an exception with The Motley Fool?
One reason is I really like what The Motley Fool has done: create an online community of investors and provide them with first rate research and recommendations.
How do I know its first rate? I looked at their track record, which is readily available on their website. Since 2002 their Stock Advisor service shows both David and Tom have outdistanced the S&P 500’s 50% plus gain by considerable margins. David Gardner’s swing for the fences growth approach has buried the market with its 200+% advance. Tom Gardner’s more cautious value approach has handily beaten it with 80% gains.
Mark Hulbert’s Hulbert’s Financial Digest, which tracks more than 200 investment-advisory newsletter services has given Stock Advisor and several other Motley Fool newsletters top marks over the years.
Also, The Motley Fool now has three mutual funds. The oldest, Motley Fool Independence is rated four star by Morningstar and its 5 year track record puts it in the top fifth of its world stock category. It has handily beaten the market and its peers. Motley Fool Great America fund, rated five star, is near the top ten percent of its mid-cap growth category.
I recently started reading their flagship Motley Fool Stock Advisor newsletter co-written by the founding brothers. It’s fun, easily understood and similar to WEALTHTRACK, takes a long term approach to investing.
So I reached out to the company and younger brother Tom accepted the invitation. I started by asking him for his 20 year perspective on what makes us better investors.
As always, if you can’t join us to watch the show on your local public television station, you can view it on WEALTHTRACK.com. Plus, for those of you who would like to see our program in advance of the broadcast, you can subscribe to our WEALTHTRACK PREMIUM subscription service.
We’ll also have an EXTRA interview with Gardner about why he believes conscious capitalism is picking up momentum and what qualities he looks for in a company. It will be available exclusively on our website.
Have a great weekend and make the week ahead a profitable and productive one.
Best regards,
Extend Your Holding Periods For Stocks And Mutual Funds
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GARDNER: PRICING POWER
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Price: $78.12 on 8/19
52-week range: $67.93 – $82.50
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This is Tom Gardeners’ first appearance on WEALTHTRACK.
TOM GARDNER: CONSCIOUS CAPITALISM
Tom Gardner, Co-Founder and CEO of The Motley Fool, believes that conscious capitalism is picking up momentum. We asked him to explain why.