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Motley Fool Rule Breakers

Motley Fool Rule Breakers is an investment advisory service run by The Motley Fool, headed by Fool co-founder David Gardner. It launched in 2004 and its team focuses their selections on high technology, dynamic growth stocks, and Rule Breakers.

Expanded Definition

The service takes a team-based approach, in which David and approximately half a dozen other Rule Breaker analysts recommended two stocks every month, generally new ideas, but occasionally including re-recommendations of previous selections. The service is managed by Ursula Dimmling Mead.

The service generally takes a high-risk, high-reward approach, and focuses on ultra-long-term investing. Attempting to locate disruptive technologies, Rule Breakers focuses on finding the companies deploying these technologies and leading their fields, and generally aims to hold their shares tenaciously through volatility.

Recent Performance

As of April 27, 2009, its 112 recommendations had an average loss of 20.79%, vs. a directly comparable S&P 500 loss over the same period of 29.53% -- ahead of the market, then, by 9 percentage points per pick. Its top performer, Intuitive Surgical, was up 229%.

What a difference (less than) a year makes: By contrast, as of July 23, 2008, its 94 recommendations had an average gain of 11.23%, vs. a directly comparable S&P 500 average gain over the same period of -1.39%. Its top performer, Intuitive Surgical, was up 646%.

In 2007, before the market peak, its average stock was up in excess of 25%.

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