The Motley Fool Stock Advisor Update: 49% Returns and Counting
Several weeks ago, I started my journey with The Motley Fool Stock Advisor. After a few weeks, I checked on my simulated stock portfolio and made some changes to my investments based on the changes The Motley Fool suggested. Below is how my investments have performed so far and what the stock advisor has been able to teach me about investing, my risk tolerance, and more.
An Update on My Investments
As noted in my previous updates, I am using an investment simulator to test out The Motley Fool stock advisor services. Using the stock advisor to help me choose $10,000 in investments, I have been able to reach an annual return rate of 49.81%.
Pinterest is my biggest gain with a 43.28% return since my initial investment. Square and ASML Holdings have both seen a return of 29.25% and 23.97%, respectively. Zoom is my lowest performer at just 1.2%, but it is still in the green.
What The Motley Fool Stock Advisor Has Taught Me
More than any return on investment, I have learned a lot about the stock market and myself while using The Motley Fool Stock Advisor. In fact, I knew little-to-nothing about what my investment style might be like, what companies I’d be interested in, or what my risk tolerance was. The stock advisor has helped me realize a little bit about each of these things.
For me, my risk tolerance is fairly low, even with fake money. When I saw Netflix was consistently losing money, even if there might be an uptick in the future, I dropped it. I also saw, through Investopedia, how my portfolio should be balanced (i.e. if I have $10,000 to invest, no more than 20% should be invested in one thing). The process also taught me which companies I gravitate to, IPOs and tech.
On top of that, The Motley Fool’s picks taught me about what might perform well in the future as well. When reading about the trends of each company, market history, and other facts provided by The Motley Fool I was able to get a better idea about the direction the market might be heading in. Really, they put all of the information you need at your fingertips to be a successful investor.
For now, because the investments I’ve made are doing well, I’m going to kick back for a few. I will still likely check in on my portfolio on a weekly or bi-weekly basis, without stressing about it too much. When I check in again if there are major market changes, I may make changes to my investments.
Overall, The Motley Fool has not let me down in terms of helping me learn more about the market, what companies I am interested in (and which I’m not), and what my investing style will be like. When it comes time for me to invest real money, I’ll have a better idea of what I’m doing thanks to this advisor. In fact, I may take some of its advice in the first few months of the new year.