Motley Fool Blast Off 2020 UK

Service Information Pack

Blast Off UK 2020 is a unique portfolio of top-rated, highly vetted US growth stocks which we believe have ‘maximum potential upside’ for 2020 and beyond.

Each stock is selected by Motley Fool Co-Founder and ‘Chief Rule Breaker’ David Gardner, who for the past 20 years, has helped thousands of US investors stay on the bleeding edge of innovation.

The service currently contains the research behind a full 15 high-potential US-listed ‘buy’ recommendations, with an additional 5 being added on a quarterly basis.

Each of these 15 ‘Moonshot’ stocks are allocated into 3 unique categories, each specifically designed to try and help your portfolio ‘Blast Off’ to success.

What Is Blast Off UK 2020?

The chart on the right was drawn at the end of November 2019, and shows the top 20 biggest winners in Motley Fool history up until that point.1

Over the years, The Motley Fool have had dozens of stock pickers analyse thousands of stocks… including not only stocks selected by US analysts, but also those recommended by our analysts in Australia, Canada, Germany, and the UK too.

But remarkably, 17 of those top 20 picks were all recommended by David Gardner. (Note: not all Motley Fool services have been running for the same amount of time.)

Why Should I Consider Following David Gardner’s Recommendations?

1. Returns calculated from a Motley Fool study into 3,795 recommendations across Motley Fool ideas services worldwide over a period from 08/03/02 to 29/11/19. Of the top 20 shares, 17 have been selected by David

Gardner within the US Motley Fool Rule Breakers and US Motley Fool Stock Advisor services. Not all of the services have been running for the same length of time.

What Is The Secret Behind David’s Success So Far?

This might sound a little strange at first, but David actually began developing his unique investment approach more than 25 years ago while studying and writing about baseball statistics.

In those days, conventional wisdom was that ‘striking out’ was the worst thing a batter could do. And that ‘batting average’ was the most important way to evaluate a player.

But David stumbled across a radical new baseball theory being championed by a statistician named Bill James, that was challenging all the old rules.

According to this new theory, batting average is a bad way

to evaluate players because it counts a ‘home run’ the same as a ‘single’, even though a home run is a lot more valuable than a single.

As a passionate investor, David realised that the conventional wisdom in the investing world was suffering from the same problem as the conventional wisdom in baseball.

In other words, many investors were so afraid of ‘striking out’ that they were focusing on hitting singles, instead of trying to hit the much more valuable home runs.

Here’s the simple reason why we believe you shouldn’t be afraid to ‘strike out’:

1. Shares you invest in have finite downside. Because you can’t lose more than you invest (please note: we’re talking straightforward equity holdings here).

2. Some shares have potentially unlimited upside. Because you could potentially multi-bag on your initial investment many times over (and I don’t mean to boast, but The Motley Fool have the track record to prove it).

In other words: the size of your ‘HOME RUN’ investing winners could have a much bigger impact on your overall returns than your stock-picking ‘batting average’.

Motley Fool Co-Founder & 'Chief Rule Breaker' David Gardner

What is a ‘Moonshot’ stock?

Simply put, a ‘Moonshot’ stock is one that we believe could earn you ‘maximum potential upside’, rather than simply beat the market.

Inside Blast Off UK 2020, we’ve identified four unique signs that help us try and pinpoint the next great ‘Moonshot’ stock ideas.

All of our recommendations will hold at least one of these traits; however, we get most excited when a business exudes several of them.

The Four Signs of a ‘Moonshot’ stock

Sign of a Moonshot Stock #1:

Company

Size

While it’s possible for the world’s largest companies to deliver impressive returns, nearly all of these companies are simply too big to fit our mandate of “maximum potential upside.”

We believe it’s easier for a $1 billion business to become a $5 billion business than it is for a $100 billion business to become a $500 billion one.

Not all US companies we invest in will be small-caps by traditional definition (sub-$3bn), but it wouldn’t surprise us if our largest winners were originally some of our smallest.

The Four Signs of a ‘Moonshot’ stock

Sign of a Moonshot Stock #2:

Market

Opportunity

We believe it can be hard for a company to potentially multiply in size if the market it serves isn’t very large.

Some companies’ core markets are large, while others find fresh upside through unlocking new optionality. And frequently it takes time for the world to realise just how large certain markets can be.

Inside Blast Off UK 2020, we’re on the look-out for important, emerging industries — those that we believe could give rise to multiple potential winners and perhaps even a few mega-winners.

The Four Signs of a ‘Moonshot’ stock

Sign of a Moonshot Stock #3:

Visionary

Leadership

In a world of rapid and constant change, leaders who can successfully navigate their companies through that change are more important than ever.

We’re attracted to the leaders who understand what the future looks like and know how to get there.

Vision isn’t all that matters in a leader, of course. Ownership, incentives, track record, and clear strategies are all important to look at and think about.

However, as we look for investments that we think have the potential to go on to multi-bag, vision stands out as a critical factor.

The Four Signs of a ‘Moonshot’ stock

Sign of a Moonshot Stock #4:

Winners

Often Keep

Winning

Companies that already exhibit strong fundamental performance and impressive price appreciation can often be some of the best contenders to continue outperforming in the future.

Winning companies might not look cheap to some investors, but many outstanding companies can potentially exceed expectations for years on end.

While the likes of the City and Wall Street may look down on buying shares post-price appreciation, we’ve learned that winning companies sometimes have a tendency to keep on winning.

All stocks inside Blast Off UK 2020 have been selected by David Gardner, with analyst Nathan Parmelee and UK Chief Investment Advisor Mark Rogers adding extra proprietary analysis to establish which opportunities could be best for UK investors.

Blast Off UK 2020 is intended to help you choose the US shares for the most aggressive 10-25% of your portfolio. It is NOT meant to be a full investing solution that recommends shares you would consider investing ALL your money in. These are higher risk selections.

We prioritise power over accuracy. Some of our picks could swim while others may sink, and that’s OK. We embrace volatility and patience, understanding that potentially explosive returns can often unfold over multiple years.

The stocks inside the Blast Off UK 2020 portfolio are divided into three unique categories:

The Stocks Inside Blast Off UK 2020

The Blast Off UK 2020 Stock Categories

Blast Off UK 2020 Stock Category #1:

Under-

The-Radar

We believe that one way to perhaps gain an advantage on other investors is to fish where they often aren’t fishing.

This category contains potential ‘home run’ stocks that are flying so far under the radar, that even David’s most trusted ‘inner circle’ of analysts in his longer running US portfolio services have never publicly recommended these stocks.

We’re not afraid to see value where others do not

The Blast Off UK 2020 Stock Categories

Blast Off UK 2020 Stock Category #2:

‘Spiffy-

Poppers’

A ‘Spiffy-Pop’ stock is one that we believe has the potential to at some point in the future, have its share price go up more in one day than what you originally paid for it.

To give you an example, let’s say you paid £15 for ‘Share A’. If this one day grows to be worth £100, and on any given day after that jumps from £100 to £116, that’s a ‘Spiffy-Popper’.

These true ‘Moonshots’ are the companies that David and the team think have the potential to be the next giant winners.

We’re hunting for tomorrow’s big potential winners

The Blast Off UK 2020 Stock Categories

Blast Off UK 2020 Stock Category #3:

On The

Launchpad

We believe that not every big opportunity has to come with an excessive level of risk.

In this category, you’ll find shares with what we consider to be a lot of potential, but they perhaps have a more acceptable level of risk, when placed alongside some of the other opportunities.

These are companies that are already ‘built’ and perhaps are now more established, but we believe there’s still a ton of runway available to hopefully lock in potentially astronomical growth.

We seek to balance risk with reward

David GardnerDavid Gardner, Co-Founder and ‘Chief Rule Breaker’ at The Motley Fool, is one of

the US’s most respected and trusted sources on investing. As an educator, stock

picker, author, lecturer, and media personality, David wears many different hats.

Along with his brother Tom, David has led The Motley Fool’s growth from a 16-

page newsletter in 1993 to a worldwide investment and financial advisory services

company that educates, amuses, and enriches more than 30 million people each

month. In that time, The Motley Fool has helped Fools everywhere achieve financial

independence across a wide variety of online and offline media channels, including

its award-winning website, its best-selling Simon & Schuster and self-published

books, and a nationally syndicated weekly newspaper column carried by more than

200 publications.

David graduated as a Morehead-Cain Scholar from the University of North Carolina

at Chapel Hill in 1988 and later wrote for Louis Rukeyser’s Wall Street newsletter

before starting The Motley Fool. In 1997, together with Mia Hamm, David received

the University of North Carolina’s “Distinguished Young Alumni Award,” which

recognizes alumni younger than 40 whose achievements have brought credit to the

university. Since 1999, David has been a member of the New York Stock Exchange’s

Individual Investors Advisory Committee, and he also serves on the board of the

Folger Shakespeare Library in Washington.

Meet The Team Behind Blast Off UK 2020

Nathan ParmeleeNathan Parmelee is an advisor on our Blast Off UK 2020, Partnership Portfolio UK, Share Advisor and Motley Fool Pro services.

Having written for our US website since 2004, Nathan is one of the most accomplished investors at The Motley Fool. He served as the Lead Advisor for Motley Fool US’ Global Gains service, before taking over the UK’s Motley Fool Pro portfolio in 2011. He then joined the Partnership Portfolio UK team at its launch in 2019.

Before coming to the Fool, Nathan worked for a well-regarded industrial and financial services company, where he learned the intricacies of corporate acquisitions. His previous life allowed him to see the world — including a three-year stint in Japan.

His true passion was investing however, and after impressing fellow investors in the Motley Fool community with his research, he was invited to write for The Motley Fool by our founder Tom Gardner — setting in motion an investing career that has seen Nathan recommend shares from across the globe for more than a decade.

Nathan’s investing interests include consumer goods, industrials, agriculture, and special situations.

Meet The Team Behind Blast Off UK 2020

Mark Rogers

Mark Rogers is the Chief Investment Advisor of Motley Fool UK.

Business and investing have been in Mark’s blood for as long as he can remember — Mark grew up around a family business in the North of England, and got his break in investing in the late 1990s, when his family’s firm was bought out. A few years later he began investing with his portion of the proceeds, and has never looked back.

Mark brought his love for investing to The Motley Fool in 2013, serving as an Advisor specialising in growth investments for Motley Fool Share

Advisor, Motley Fool Hidden Winners, and The Partnership Portfolio UK.

As the Head of The Motley Fool’s UK Investing Team, Mark approaches the stock market with the same old-fashioned business instincts and values that he honed on the factory floor. He specialises in unearthing top-quality under-the-radar investments in the small-cap market, and holds the CFA UK Level 4 Certificate in Investment Management.

Meet The Team Behind Blast Off UK 2020

Blast Off UK 2020 is currently closed to new members.

However, from time-to-time, the situation arises where we are able reopen the doors for a strictly limited time only.

To add yourself to our ‘no obligation’ invitation list, simply click the button below, and enter your email address in the box provided. We’ll then make sure you’re made aware of any

reopenings, as soon as they become available.

Click here to join the invitation list

How Can I join Blast Off UK 2020?

• The prices of all shares, and the income from them, can fall as well as rise.

• You run an extra risk of losing money when you buy shares in certain smaller

companies including “penny shares”.

• There is a big difference between the buying price and the selling price of these shares. If

you have to sell them immediately, you may get back much less than you paid for them.

The price may change quickly, it may go down as well as up and you may not get back

the full amount invested. It may be difficult to sell or realise the investment.

• You should not speculate using money you cannot afford to lose, or rely on dividend

income for non-discretionary living expenses.

• This service includes recommendations of securities listed on overseas stock

exchanges. Investors may incur extra dealing charges, administrative costs or

withholding taxes when dealing in these securities and should check with their

stockbroker before dealing. Many UK stockbroking platforms levy an ‘FX charge’ when

dealing in securities in other currencies, and this can be a multiple of the standard

dealing cost. This can mean the price needs to move much further in your favour

before you will be able to realise a profit. You should also be aware that dividends

may be paid in US dollars or in other currencies, and that these could also attract

additional charges. If this is the first time you have dealt in US-listed stocks, your

broker will probably ask you to complete a W-8BEN form as a formality. Additionally,

some brokers may also ask you to complete a NR301 form if this is the first time you

have dealt Canadian-listed stocks. Completing these forms establishes your foreign

ownership and prevents double taxation. Bear in mind the time difference as well

when dealing on North American markets - you will generally be served best by

issuing dealing orders when the relevant market is open.

• There are additional risks in investing on overseas stock exchanges. Companies

listed on stock exchanges other than the London Stock Exchange may be subject to

different accounting and reporting standards, and your regulatory protection may

not be the same. You should seek professional advice if you need a more detailed

assessment of these risks.

• Changes in exchange rates may have a significant and materially adverse effect on

the value of the value or price of these investments in sterling terms. You could lose

money in sterling even if the stock price rises in dollar terms, although this could also

work in your favour.

• Performance statistics are calculated on a like-for-like basis with regard to currencies,

so US dollar investments or Canadian dollar investments will be considered purely in

their own currencies without any adjustment for changes in exchange rates. These

may not accurately reflect real returns for a sterling-based UK investor.

• We have taken all reasonable care to ensure that all statements of fact and opinion

contained in this publication are fair and accurate in all material aspects.

• Investors should seek appropriate professional advice from their stockbroker or other

adviser if any points are unclear.

• This service gives general advice only, and the investments mentioned may not

necessarily be suitable for any individual. You must consider your own circumstances

and make your own decisions.

Risk Warning

Blast Off UK 2020 is a Motley Fool product:

For all queries please email CustomerServices@Fool.co.uk. Alternatively you can call us on 0207 462 4300 Mon-Fri (except for public holidays). Authorised by The McHattie Group, St Brandon’s House, 29 Great George Street, Bristol, BS1 5QT.Telephone: 0117 407 0225. Email: enquiries@mchattie.co.uk. The McHattie Group is authorised and regulated by the Financial Conduct Authority and offers restricted advice on certain types of investment only.

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