Motley Fool Everlasting Stocks Review

About Motley Fool Everlasting Stocks

Everlasting Stocks from The Motley Fool is a stock picking service run by Tom Gardner and his team of analysts. Since launching in 2018, it’s outpaced the S&P 500 by more than 3x.

Everlasting Stocks can be used in conjunction with The Motley Fool’s more popular newsletters, Stock Advisor and Rule Breakers, or stand on its own. Compared to these other services, Everlasting Stocks focuses more on long-term portfolio management.

So, can this service help grow your portfolio? Find out if it’s right for you in our Everlasting Stocks review. 

Motley Fool Everlasting Stocks Pricing Options

Everlasting Stocks costs $299 per year. You can cancel within 30 days for your money back if you’re not happy with the service.

New members can get their first-year subscription for $99.

Everlasting Portfolio Investing Style

Everlasting Stocks focuses on fundamentally strong growth stocks with the potential for massive gains in the future. Given that purview, it’s not surprising that many of the stocks that Everlasting Stocks recommends are in the tech sector – some of the top-performing picks include Shopify, Atlassian, and Meta (formerly Facebook).

If you’ve ever tried Stock Advisor or another service from The Motley Fool, the growth investing focus of Everlasting Stocks will feel familiar. That’s no coincidence, since Tom Gardner and his team contribute half the picks that Stock Advisor issues.

One important difference, though, is that Everlasting Stocks picks are designed to be held for the long-term rather than a few years. The service launched in 2018 with 10 stocks in the portfolio, and only one has since been removed. 

Motley Fool Everlasting Stocks Features

Stock Recommendations

The Everlasting Stocks portfolio originally included 10 stocks, but today it’s up to 26 stocks. Unlike other services from The Motley Fool, there’s no set cadence for when new recommendations appear. Instead, recommendations are issued as Gardner’s team identifies them. In 2020, that meant 5 new stocks recommendations were issued. In 2021, there have been 12 new recommendations.

Anytime a new recommendation is issued, subscribers are notified by email. Each recommendation comes with a brief explanation of why Gardner likes the stock, but there’s no deep dive into companies’ fundamentals. Everlasting Stocks will also issue re-recommendations for stocks already in the portfolio whenever Gardner’s team thinks they’re warranted. 

Within-Portfolio Rankings

One of the neat features that Everlasting Stocks recently added is a monthly ranking of all the stocks currently in the portfolio. This is useful because the rankings make it easy to decide how to invest if you have additional money you want to contribute to your portfolio. The ranking system is pretty simple – it’s a list numbered from 1 to 20 – and Gardner includes a brief note with updates about the highest-ranking stocks.

Motley Fool Everlasting Stocks Historical Performance

Since launching in 2018, the Everlasting Stocks portfolio has returned 90.2% compared to 28.6% for the S&P 500 over the same time period.

However, the performance of individual stocks has been extremely variable. Tesla, the leading stock in the portfolio and one of the original stocks included when Everlasting Stocks started, has gained nearly 2,000%. Shopify has gained 980%. On the other end of the spectrum, there are five stocks that have lost more than 50% of their value.

That kind of hit-and-miss record makes it hard to selectively invest in Everlasting Stocks picks. If you miss out on an explosive winner like Tesla, you could easily underperform the market.

How Does Everlasting Stocks Compare to Other Services?

Compared to other stock-picking services from The Motley Fool like Stock Advisor and Rule Breakers, Everlasting Stocks is more targeted towards long-term growth investors. Since new picks are relatively infrequent, you don’t need to move money around your portfolio every month. In addition, Everlasting Stocks aims to hold stocks for at least five years, compared to two to four years for most Stock Advisor picks.

Relative to services outside The Motley Fool universe, Everlasting Stocks has an impressively strong performance record. However, the performance of individual stocks has been very mixed, and Everlasting Stocks doesn’t use stop losses as some other services do. In addition, Everlasting Stocks doesn’t offer much in the way of research tools for you to dig into the recommended stocks on your own. For that, you might consider a service like IBD Leaderboard.

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What Type of Investor is Motley Fool Everlasting Stocks Best For?

Everlasting Stocks is best for long-term investors who are willing to take big swings on growth stocks that could either explode in value or severely disappoint. While the portfolio has beaten the S&P 500 on the strength of its initial picks, it remains to be seen whether Gardner and his team can consistently find new stocks that will outperform the market going forward.

Everlasting Stocks is also ideally suited for investors who like to take a hands-off approach to their portfolio. The service has a long investing time horizon, and it can be months between new stock picks. Investors who like to buy and sell with some frequency are likely to find that the cadence of Everlasting Stocks doesn’t work for them.

Pros

• Outperformed the S&P 500 by 3x in 4 years
• Simple monthly ranking system for re-investment
• Long-term investment horizon
• Very easy to follow and requires little effort

Cons

• High-risk approach with some stocks losing big
• No tools for self-guided research