Supernova Strategy – Video Transcript

What is Motley Fool Supernova and why was it launched?


Motley Fool Supernova was launched in order to bring together the work that I've been doing in Rule Breakers and Stock Advisor at the two services that I've served for more than 10 years each … and really bring all those 200 stock picks together into a single service, a single universe, adding a great deal of convenience for people who are looking for what I think of as 200 of the most innovative companies of our time. My favorite companies. That's why we picked them. But specifically, to bring those together into portfolios.

What is the difference between Supernova and Motley Fool Wealth Management's Supernova SMA strategy?


The difference between Motley Fool Supernova and the Supernova strategy that we use in Wealth Management is in Wealth Management you have a comprehensive Wealth Management solution for you with a team of professional money managers behind that who are picking stocks and managing that portfolio for your benefit. We make all the hard decisions for you.

There's many decisions that typical investors don't even think about that they're making regularly and they're making sub-optimally. Decisions like, “Oh, that's a new idea there. I like this stock. I have no more money.” How hard do you think that decision is? What stock are you going to sell to raise the capital for that purchase? Do you trim across those positions? Is this stock actually offering a higher return in the future for you than the ones you currently own? Those are tough decisions and we make those decisions for you.


What Motley Fool Wealth Management and that team is doing is completely different in this sense. That team is doing it for its customers. In other words, if you or somebody who doesn't want to spend additional time on a website figuring out which stock to buy, or even if we tell you how much through Supernova, if you don't want to do that [and] you want a simpler life, then I think Motley Fool Wealth Management is ideally positioned in order to offer members who want an experience that gives them stocks like Supernova or the other SMAs and actually just does it for them.

What is the Supernova SMA strategy of your custom-blended SMA?


The Supernova SMA strategy is based on finding innovative companies that serve large market opportunities. They tend to have management teams that are going to go after those opportunities and find the technologies and the products that capture that value. So following along in Motley Fool Supernova, there are many, many missions. With the SMA, there's one portfolio and my team and I, we are looking within the Supernova universe and we are coming up with what we think are our highest-conviction ideas and building a portfolio around those.

Why did the Fool Wealth team decide to include Supernova as one of its seven signature SMA strategies?


It's important to offer the Supernova strategy — a growth strategy — as part of Wealth Management's Separately Managed Accounts because every investor has a need for their portfolio to provide for some future needs that they're going to have and to really achieve those goals and those aspirations, you need to have some growth … some growth aspect, even if you're in retirement.

Why should investors be excited about Motley Fool Wealth Management SMAs?


You know, when I think about starting the company with my brother, Tom, 24 years ago, our message at the time … it still is our message … you can do this. You can do this yourself with our help.

But over the course of time, we recognized that a lot of people didn't necessarily want to do it themselves. They would have loved somebody to do it for them. So to have a professionally trained team at Motley Fool Wealth Management — and that team looking at the same stocks I am and deciding which ones are most appropriate for a new member or a member's portfolio — and to have them doing that for you … that's a great offering and it's a delight now, in our 24th year, to be able to offer that through Motley Fool Wealth Management.


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