music selection: “Dance Of Death” — Iron Maiden

The Motley Fool played an important part in my early investing journey.  My undergrad and grad school training involved indoctrination in the Efficient Market Hypothesis, which we “proved” using THE ONE HIGH AND HOLY MATHEMATICS [Amen] quite exhaustively.  I started out quite content to index myself and wait four decades to retire.  It was the Fool that persuaded me perhaps markets were not 100% efficient and it might be possible to beat the indexes and retire early.  For that I am forever thankful.

One of the things I liked best about the Fool was their impeccable ethics.  Alas, that is also where they fell from grace.  Their marketing has always been rather aggressive but not too long ago they stepped over the line with their Sierra Wireless advertisement.  They essentially guaranteed an 8,500% return.  They further described the issue as “the only stock you will ever need to own.”  This clearly violated their long held view on prudent diversification.

There were many howls of protest on the (excellent) user boards within the site.  And here is where the Gardner brothers really dropped the ball for me.  They could have owned up and admitted they made a mistake and outlined what was being done to ensure the marketing department wouldn’t run amok again.  Instead, they made excuses.  The community wanted an apology and none was forthcoming.  I was subscribed to “Stock Advisor” and “Income Investor” and called customer service to cancel and request refunds on each.  To their credit there was no resistance to issuing my pro-rated refund.

I still play CAPS on their site.  I still read Alyce Lomax.  And I especially still read Morgan Housel.  But I don’t give them my money.

Devour your prey raptors!

Why I Canceled My Motley Fool Subscriptions

Never miss another opportunity to devour prey!

7 thoughts on “Why I Canceled My Motley Fool Subscriptions

  • June 11, 2015 at 11:27 am
    Permalink

    What is CAPS ? Do you spend time on Seeking Alpha ?

    Was an old Vanguarder myself, with all the usual suspects books from Malkiel, Swedroe, Rick Ferri etc before last October. Used to lurk on Bogleheads.org/Diehards.org.

    Any ideas on Tim Plaehn’s monthly dividend newsletter ?

    Thanks

    Vihs

    Reply
    • June 11, 2015 at 12:23 pm
      Permalink

      CAPS is a stock picking game with about 75k users. You can vote up to 200 tickers to either outperform or underperform the S&P500. You earn points for how many ever percent your pick outperforms (or underperforms) the index. It is a pretty good tool to see what the general consensus on a stock is.

      I am not familiar with Tim Plaehn’s work.

      -TLK-

      Reply
  • June 12, 2015 at 4:09 am
    Permalink

    I do not take stock tips from any site. At most I take a stock tip as an idea and then evaluate myself. Did you purchase that stock? Or you just canceled the subscription because of the blatant claim of 8500% ROI?

    Reply
    • June 12, 2015 at 2:11 pm
      Permalink

      Martin, thanks for reading! I commend you for not taking any stock advice blindly. I hope all my readers use what I post here to learn how to trade for themselves. I did not purchase Sierra Wireless (the balance sheet was a hot mess). I kept the subscription for about a month as I tried to elicit an explanation for the outrageous behavior from customer service and from the full times on the internal message boards. In the end, I got only excuses and decided I could no longer rely on the ethics and objectivity of MF analysis. Canceled.

      Reply
  • June 13, 2015 at 4:51 am
    Permalink

    I also do not take tips , do my dd from many sources. No newsletters or subscriptions, ever…
    My positions are here, all long..
    A mid -life investor , investing in stocks since October 2014, in Taxable, and 401ks.

    DGI remains the core, with ever larger forays into Income Growth/High Yield

    Rental Real Estate, Smaller Local Bank plays

    CURRENT HOLDINGS:

    ABBV, AEG, AFL, AMGN, AZN, BA, BAX , BBL, BEN, BMO, BNS, BP, CAT, CELG, CHRW, CMI, CNI, COP, COST,CVX,

    DEO, DOV, EMR, GE, GILD, GBX, GIS, GSK, HP, HSBC, HSY JNJ, KMI, KO, LMT, LVS. MMM,

    NOV, NSC, NSRGY, OKE, PEP, PG, PM, POT, QCOM, RDS-B, RY, SOUHY,STO,

    SU, T, TD, TIS, TJX, TOT, TROW, TRV, UL, UNP, VZ, WFM, WMB, WMT, XOM

    Reits: HCP, OHI, WPC, STWD. STAG, O, VTR, SBRA, DLR, LXP, MPW, ARESF, DUNDF, DRETF,DREUF, NWHUF

    UTES : SO NGG PPL BEP BIP D DPG UTF

    mREITs : MORL, REM

    BDC: HTGC

    MLP: MLPL ARLP BX CLMT HCLP MEMP NTI EPD ETP

    CEFs : CEFL, PCI, PFN, THQ, GRX,STK, IGR , JPS, RVT

    Option/ROC CEFs : JGV, DIAX, BXMX, QQQX, ETY

    HALL OF SHAME :

    NADL, SDRL, ESV

    Income Chasers :

    STB, AI, TAL, TGH

    AUSSIE BANKS: ANZBY NABZY WBK

    Small but Growing Rapidly Loyal3 Portfolio: To Teach the Kids about DGI

    AAPL, DIS, HAS, HSY, KO, KRFT, MAT, MCD, MSFT, NKE, PEP, UL, WMT, YUM
    I like your 1/3 strategy and trying to replicate something similar, Muni CEFs beaten down now …

    Thanks
    Vish

    Reply
    • June 16, 2015 at 12:58 pm
      Permalink

      Love this: “Small but Growing Rapidly Loyal3 Portfolio: To Teach the Kids about DGI”

      Start them off right!

      Reply
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