What is Motley Fool Wealth Management’s investing approach, and what is “Foolish” investing?
Bottom line: We aim to grow your money and build long-term, lasting wealth. Our “Foolish” investors put your money to work through active stock picking and professional portfolio management, giving you the potential to outperform the market. Here’s how we do it:
High-conviction ideas
Your portfolio will include only heavily vetted companies that our Analysts and Portfolio Managers personally believe have lots of room to grow, and the potential to reward you as an investor in the process.
Each concentrated equity strategy holds only between 20 and 35 stocks to give each business the chance to make a meaningful impact on your overall returns.
Distinguishing quality
We’re constantly on the lookout for standout businesses with strong track records, solid fundamentals, and the potential to outperform their peers.
Our “Four Pillars of Quality” anchor our stock-selection process. These pillars include:
- Management, culture and incentives
- Business economics (i.e. strong balance sheets and healthy reinvestment of profits)
- Competitive advantages
- Trajectory (where we see the business in 5-10 years)
Concentrated, equity-based strategies
For some investors, an index or mutual fund that simply matches average market performance is sufficient. But we and our clients belong to a select group of investors who want the chance to do better by investing in individual stock positions. That’s why you own the individual positions in a tax-efficient separately managed account (SMA).
Long-term, buy-and-hold philosophy
Our goal is to grow your wealth for the future, so we handpick only stocks we believe have the potential to deliver compounding returns to shareholders over several-year holding patterns.