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The Motley Fool Stock Advisor Update: 49% Returns and Counting

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The Motley Fool Stock Advisor

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%.

The motley fool stock advisor

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.

Final Thoughts

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.

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What Are the Pros and Cons of International Investing?

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Every time you turn on the news, it’s likely you see updates of political strife, wars, and international injustices. Without completely experiencing life abroad, it can feel somewhat ambiguous. Without doing your research, it may be easy to assume that international investing is risky or uncertain. However, that isn’t necessarily the case. If you have started investing, it’s likely you eventually will wondering what are the pros and cons of international investing. Here is what you need to know.

 

Why Should You Consider Investing Internationally?

With so many investment options within the United States, you may wonder why you should even consider investing internationally. Well, there are a few reasons.

For one, international markets are incredibly diverse, and include opportunities to invest in industries you can’t invest in domestically. Every country has different economic strengths, and it may prove worthwhile to research growing industries in those countries.

Secondly, many major companies are based overseas. By investing outside of the United States, you are able to diversify your investments and find more large-scale opportunities. And while strong performance isn’t necessarily given, by investing in international companies, you broaden the opportunities a viable to you.

Lastly, investing internationally diversifies your investments. As you know, it’s never good to have all of your eggs in one basket. If you only invest domestically and the country economy crashes, you may suffer more than if you diversified your investment portfolio.

 

Cons of International Investing

What are the drawbacks of international investing? One potential pitfall is the risk with not knowing everything that is going on abroad. A country’s economy could be near collapse, and unless you follow the news often, you could miss it. In turn, your finances could take a hit. Whether a country is suffering politically or socially, it could impact your bottom line.

Another potential con of investing internationally is the difference in regulatory requirements. While you are likely pretty familiar with the compliance expectations within the United States, other countries aren’t necessarily held up to the same standard. That means the information you receive about your investments abroad may be completely different than you’re used to, making it challenging to fully understand. Or worse, you could receive totally inaccurate investment reports!

Further, the differences in international currencies could affect your investments. Any fluctuations in currencies when compared to the US dollar could affect your investments. This could be helpful or harmful; but either way, it creates another factor in comparing your international investments versus your domestic investments.

 

Is Investing Internationally Right for You?

So, is international investing right for you? While there are some potential risks and differences to investing internationally, it also helps to diversify your nest egg. If you’re able to keep up with various socioeconomic conditions of countries abroad, or work with a financial advisor who can help you along the way, investing internationally may provide the diversification you are looking for.
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How to Find Out if a House Is in Foreclosure

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Find Out if a House Is in Foreclosure

Buying a house that’s in foreclosure can be a smart way to start investing in real estate. You can get your own home for a bargain. Therefore, you would have a lot of housing security. Even better, you can buy the house, flip it, and make good income. Do you know how to find out if a house is in foreclosure? Here’s what you need to know …

What Does It Mean to Buy a House That’s In Foreclosure?

When a homeowner is unable to make payments on their mortgage, the lender can take the house back. The house is in foreclosure. Then, the lender can put the house up for auction to recoup some of their costs. They want to offload that property quickly. Therefore, they offer those houses at very low prices. The result is that you can get those homes at a very low price.

How to Find Foreclosure Houses for Sale

You can find foreclosure houses for sale on various websites. For example, Foreclosure.com and Auction.com are two are websites that offer exactly this kind of real estate investment opportunity. Additionally, you can search for foreclosed homes for sale on major real estate websites such as MLS and Zillow.

On Zillow, you would go to the listing type and select “foreclosures” from the Sale section. If you want to see which houses might become available for seen, then you can select both “foreclosed” or “pre-foreclosure” under the Potential Listings section (in contrast to the Sale section.)

In fact, Zillow is a great resource not just for finding the home to buy but also for getting information about how to buy a home that’s in foreclosure. Obviously, the process is slightly different from buying other homes. There are some details to be aware of so that you get it all done as easily, affordably, and appropriately as possible.

How to Find Out if a House Is in Foreclosure

So, that’s how you find foreclosed homes for sale. But how do you find out if a house is in foreclosure? In other words, what if you want to check about the status of a home that you’re interested in purchasing? Zillow lists three good ways to find out if a house is in foreclosure:

1. Search Public Records

There’s a process that the lender must go through when putting a home into foreclosure. Part of that process requires that they file a variety of different legal notices with the county recorder. Those legal notices are public record. Therefore, if you want to find out if a house is is foreclosure, you can check for those public records.

Just go to the county recorder’s office for the county in which the home is located. Search for a Notice of Default, Notice of Sale, or lis pendens. The latter is a public notice that there’s a lawsuit associated with the property. This tells you the state of the home. It’s an easy, free way to find out if a house is in foreclosure.

Tips for Searching Public Records

Tip #1: Sometimes you’ll first need to search the County Assessor’s website. You’ll go there to find out the property’s parcel number. This will also give you the owner’s name. Then you’ll use that information to search the county recorder’s office. SF Gate has more information on this.

Tip #2: Depending on where you live, it’s possible that not all records will be available online. In some counties, you may have to visit the courthouse or City Hall in person in order to search the public records. However, you do have that right. Don’t be intimidated.

Tip #3: Check back often. They update the public records regularly. Therefore, the status can change quickly. If you’re serious about buying a home in foreclosure then you might want to check weekly.

2. Check Government Agencies

There are government agencies that publish foreclosure listings. This is one way to find a house in foreclosure for real estate investing. It’s also how you can check if a house you’re interested in is in foreclosure. Furthermore, these agencies usually make the guidelines really clear for you in terms of what would be necessary to purchase the home. Websites to check include:

  • The Federal Housing Administration (FHA)
  • Fannie Mae
  • The Treasury Department
  • Small Business Administration (SBA)

3. Check the Sign

Did you see a house in your neighborhood that you’re interested in purchasing? If so, then you might be able to just check the for sale sign to find out if it’s in foreclosure. Oftentimes, the sign will have a mark reading “foreclosure” or “bank repo.” Then you know for sure that this is the status of the house.

4. Check Bank Listings

In addition to Zillow’s advice, WikiHow offers two more tips. The first is that banks generally list pre-foreclosure and foreclosure homes for sale. You can search their database. If you have a specific address that you want to know about, use that information to find out if a house is in foreclosure.

5. Check the Taxes

Local tax authorities are sometimes aware of the foreclosure status of the home. If you give them a home’s address, then they can search for you to find out if it’s in foreclosure. They aren’t the number one resource but they can be an important tool in your search.

Working with Real Estate Agents on Foreclosure Home Purchases

Another way that you can find out if a house is in foreclosure is to ask the real estate agent. When you call to learn about the property, simply ask. They’ll tell you if that’s the case. In particular, if you see a very low price for a home, then you should ask this question.

If you’re interested in purchasing homes that are in foreclosure, then you might also want to work with a realtor of your own to make the purchase. There are realtors who specialize in exactly this type of home sale. They’ll be able to to help you figure out homes that are available for purchase. Moreover, they’ll know all of the steps to take in order to process the purchase.

Finally, it’s important to know that when a home is in foreclosure, a real estate attorney gets assigned to the property. If you find out the name of that individual, then you can contact them directly. RealtyTrac says that this is the best way to confirm whether or not a home is in foreclosure.

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Is It Ethical to Invest in Mining?

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ethical investing in mining

What you do with your money matters. Of course, it matters to your life personally. But the ricochet effect is so much bigger than that. How you spend and invest your money truly does impact the world. That’s why ethical investing is so important. By choosing to invest in the things that align with your values, you live a richer life. So, what about mining? Is it ethical to invest in mining?

What Is Ethical Investing and Why Does It Matter?

Ethical investing basically just means that you choose to invest in the things that matter to you. If you are concerned that fast fashion leads to environmental destruction and slave labor, for example, then you don’t invest in companies that create throwaway clothes.

Ethical investing varies from person to person in two key ways:

  • What your ethics are
  • How much research you do into your investments

Investing in mining might pose no ethical problems for one person. On the other hand, someone concerned about the environmental damage sometimes done by mining might find investing in the issue very problematic. That’s part one: what types of things align with or are against your ethics?

Part two is how much research you give to make sure that you engage in ethical investing. Some people do very little. If they see that something is completely against their ethics, then they don’t invest. For example, a vegan wouldn’t likely invest in factory farming. But they might do deep research into every aspect of a company to make sure that no part of what they do impacts animals in any way. Then there are the people who do exactly that kind of deep research. Ethical investing exists on a scale: how much are you willing to research, educate yourself, and carefully choose your investments to align with your belief systems.

Why Ethical Investing Matters

Where you put your money makes a difference in what happens in the world. If you want to live a life aligned with your deepest values, then this means that you also give attention to where you spend and invest your money. This is one tangible way that you have an impact on the world. You get to have a voice in creating the world that you want to see.

Moreover, ethical investing helps you to live a richer life. Money matters but it simply isn’t everything. Having all of the money in the world doesn’t feel good to most people if they get it by doing harm. The more you dig deep inside to understand your core values, the happier you’ll likely be. When you invest in ways that support those values, it feels good.

Is It Ethical to Invest in Mining?

If you have no interest at all in the effects mining has on the world,  then you have no quandary. For you, investing in mining doesn’t compete with your values. But many people do have concerns about this topic.

Why Is Mining a Problem?

The major concern that people have when it comes to ethical investing in mining is the damage that mining does to the environment. MIT notes that “unregulated mining has the potential to release harmful substances into the soil, air, and water.” It doesn’t matter what type of mining you’re doing – open pit, underground, etc. Regardless, it all has the potential to cause environmental damage. This kind of damage can harm the planet and all of the things living on it, including humans.

But It’s Not Always a Problem

Scientists agree that mining can cause environmental damage. However, it doesn’t always have to. The risks can be mitigated. The American Geosciences Institute says, “The key to effective mitigation lies in implementing scientific and technological advances that prevent or control undesired environmental impacts.” When proper regulation, oversight, and care, the environmental damage can be limited.

Honestly, It’s a Tough Issue for Ethical Investing

When it comes down to it, mining is not a clear cut issue. It’s not good or bad. Yes, it can cause some environmental damage. But at the same time, to stop mining all together would significantly change our lives. Not all humans are prepared for that. Moreover, sometimes there is a lot of good with the bad.

Consider, for example, lithium mining. Stockhead, in discussing the issue of ethical investing in the mining industry, reminds us that, “Lithium is mostly used for battery energy storage and other positive uses like more energy efficient production of glass.” So, although the mining itself may cause environmental harm, the way the lithium is used can make environmental improvements. How does one balance that?

This is where we circle back to that question of how much research you’re willing to do. Mining isn’t an either/or issue. Therefore, ethical investing in mining requires that you really delve into the nuances of the topic. If you want to be responsible about it, then you will need to research the effects of different types of mining. Moreover, you’ll need to look at the practices of different companies. It’s not easy, but then perhaps living a life truly aligned with your own ethics isn’t easy.

Tips for Ethical Investing In Mining

If you want to invest in mining, then the first thing to do is to ask yourself what ethics you have about the situation. The better you know yourself, the better you’ll be able to tell if your investments align with your beliefs. For example, the same article about lithium mining discusses uranium mining. On the one hand, it can go to build weapons, which is highly unethical to some people. On the other hand, it has lower emissions than other mining, so that could be ethical for other people. Knowing your values helps you make your investing decisions.

Next up is to do the research. Learn about different kinds of mining. Learn about the companies you might want to invest in. Of course, each person will do this to varying degrees. Therefore, do what feels comfortable for you.

Here are some additional tips for ethical investing in mining:

  • Ask yourself about the end use of the product being mined? Does it contribute to a world that aligns with your ethics?
  • Generally speaking, investing in oil and coal currently aren’t considered ethical investments.
  • How transparent about the big issues are the companies you invest with?
  • What are each company’s goals and commitments to offsetting the problems of the industry?
  • What can you learn about human rights abuses and exploitation in the mining industries?
  • Work with a financial advisor who understands your ethics and will help you find the right investments.

What do you think: Is it ethical to invest in mining?

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Stock Market Black Friday Hours

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Stock Market Black Friday hours

You take your investing seriously. Therefore, you pay close attention to the stock market. But things get strange around the holidays. It can be hard to keep up with the changing hours during this busy time of year. Here is all that you need to know about 2020’s Stock Market Black Friday hours. Black Friday falls on Friday, November 27, 2020.

Regular (Non-Holiday) Stock Market Hours

If you’re a serious investor, then chances are that you already know this. However, it’s always good to review. There are two different U.S. stock markets: NYSE and NASDAQ. Additionally, there’s the U.S. bond market. Each of these have slightly different operating hours during normal (non-holiday) times. Those are as follows:

NYSE Normal, Non-Holiday Stock Market Hours

On regular trading days, NYSE opens Monday – Friday. The core trading sessions starts at 9:30 am and runs until 4 pm (ET). However, the pre-opening session begins at 6:30 am ET. Moreover, there’s a late trading sessions that goes until 8 pm ET (or 5 pm PT).

NASDAQ Normal, Non-Holiday Stock Market Hours

NASDAQ has very similar hours to NYSE. Regular core trading session hours are exactly the same: 9:30 am – 4 pm ET, Monday – Friday. Even the late trading hours are the same, ending at 8 pm. However, they actually open earlier. The NASDAQ pre-opening hours begin at 4 am ET.

U.S. Bond Market Normal, Non-Holiday Hours

Bond markets typically begin trading at 8 am ET. They typically end trading at 5 pm. Early trading hours begin at 4 am ET. Late trading hours end at 8 pm ET. There are also bond auctions. For example, the NYSE has two daily bond auctions, at 4 am ET and at 8 am ET.

Note that there are many different options when it comes to all of the stock and bond markets. NYSE alone has times for Tape A, B, and C, American Equities, Arca Equities, NYSE Chicago and more. The times given here cover most trading but you can get details directly from NYSE and NASDAQ if you need more specific information.

The Stock Markets and Bond Markets Close For Thanksgiving

Of course, Thanksgiving is a federal holiday. While stock markets and bond markets don’t observe all holidays, they do observe the major ones. Obviously, Thanksgiving is a major holiday in the United States. Therefore, NYSE, NASDAQ, and the US Bond Markets all observe the holiday. No trading happens on Thanksgiving, which is Thursday, November 26, 2020.

Stock Market Black Friday Hours

NYSE and NASDAQ both re-open for trading on the Friday following Thanksgiving Day. However, they limit trading hours. They close early, at 1 pm EST on Friday.

The US Bonds market also closes early on Thanksgiving Day. However, they are open one hour later than the stock markets. Therefore, they close at 2 pm EST on Friday.

Regular stock market and bond market hours resume on Monday following Thanksgiving.

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The Motley Fool Stock Advisor Review Update

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The motley fool stock advisor review

A few weeks ago I started using The Motley Fool Stock Advisor to see how their picks faired in the market. As an investing novice, my knowledge of what makes a good investment was relatively limited prior to using the stock advisor account. However, after a few weeks of observing my faux investments and making notes of how they are performing, I’ve learned a bit. Here is what I’ve found during my Motley Fool Stock Advisor review…

How The Motley Fool Teaches You About Investing

As I discussed in my initial review, The Motley Fool stock advisor is probably best-used by newbies (like myself) and intermediate investors. More seasoned investors may find the advisor informational, but I assume most experienced stock market investors know much of what is recommended.

The daily stock picks are displayed on The Motley Fool Stock Advisor like this…

The Motley Fool Stock Advisor Review

When you like to expand each company, it provides more in-depth information about the stock and its performance history. As I looked at each recommendation, I noted The Motley Fool tends to suggest stocks that have had a steady increase in value over the last six months. Fiverr, for instance, had a starting price of around $63 six months ago and now is priced around $181. Seeing this trajectory can help you identify an expanding company that may produce decent returns.

My Stock Picks

It should be noted that I did not stick to all of the “top picks” from The Fool. Netflix was not a pick but it was listed among the top movers from the advisor the week I began. I have also always been excited about what Netflix does (in the market and as a company). Here is how they’ve been performing…

the motley fool stock advisor review

In my initial review of The Motley Fool Stock Advisor, I took a look at how easy it was to use and how much information was provided to newbies like me. Honestly, I’ve been pleasantly surprised by all the data the advisor provides on each investment. It gives me information on what I should pay attention to when I invest in the future.

Next Investments

My next move will be to alter my investment holdings based on the new recommendations from The Motley Fool this month. I plan to replace Solar Edge Technologies and Netflix in my portfolio with similarly-priced stock. These two are the only investments I’ve made since taking The Motley Fool’s advice that have not shown a positive return. Considering I invested in five companies, that is pretty great.

The net loss has also not been huge. For Netflix, which was only a “top mover” and not technically a Motley Fool recommendation, I’ve only lost $38 total. Solar Edge, on the other hand, has given me a net loss of $478. Trading these two stocks out for one of two of The Motley Fool recommendations may these small losses around.

When it comes down to it though, less than $550 in total loss for $10,000 in investments is not bad at all. If I were to make these stock picks myself, I would not have thought to consider any of these businesses. My highest earner, ASML Holdings, is a company I’ve never even heard of.

Similar to my last choice, I picked one of The Motley Fool’s picks for the day (Zoom) and I also picked Tesla, one of the day’s top movers. We will see how it goes.

The Motley Fool Stock Advisor Review

Conclusion

In conclusion, The Motley Fool is educating investors, especially novices like me, on how to research and truly pick a good stock. I have been able to learn more about each stock, why it may be a good investment, and what signifies a stock that will provide good returns.

If you have been considering trying out The Motley Fool Stock Advisor, it is incredibly affordable at just $99 per year (for now). Don’t miss out on this great stock advice at a great price!

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