Economic Fools: David Gardner on 'The Motley Fool Million Dollar Portfolio'

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IT MAY BE a new year, but the struggling economy and fragile stock market weren't left behind in 2008.

No matter to David Gardner, one-half of the brothers who founded financial advice company the Motley Fool. In fact, Gardner said, this is the perfect time to invest in the stock market and take advantage of the low prices of many stocks.

He and his brother Tom have co-authored a book that offers investors — both greenhorns and old hands — advice on "how to build and grow a panic-proof investment portfolio," in the words of the subtitle.

But ironically, the Gardners began working on "The Motley Fool Million Dollar Portfolio" long before the economy really took a dive.

"Gosh, if we had [known], the first thing we would have done has nothing to do with the book — we would have sold everything!" said David Gardner with a laugh. "We are very patient, and I think we convey that in our book."

Gardner's quick jump between genial joking around and off-the-cuff detailed financial analysis is the trademark of almost everything the Motley Fool does. It's serious and savvy advice that encourages readers to take control of their own finances, and offers the knowledge to help them do so. But it's also simple, clear, engaging and irreverent.

"The Million Dollar Portfolio" book is an offshoot of the eponymous "Motley Fool Million Dollar Portfolio" Web experiment that allowed users to watch Tom Gardner invest and manage $1 million of the Motley Fool's money.

While giving investment advice is nothing new for the Motley Fool, Gardner explained that this book is significantly different from what the Fool has done in the past.

"This is the first book where we really lay out a number of different investment approaches," he said. "In past books, we've advocated a primary approach ... so we've kind of been modeling for people out there based on our own behavior. With this book, we try to take that further by showing different ways to invest, all of which are valid and are pertinent to different types of people."

"I would say this is the 'What Color is Your Parachute' [a career guide] Motley Fool book. In the past, we've said, 'Hey, we like blue parachutes. We think you should wear a blue parachute.' This time, we're like, 'Here's eight different color parachutes.' For a lot of us, it becomes which one do you want to do or follow."

He also explained that while he and his brother may not follow all of the strategies outlined in the book, he has complete faith in each of them.

"Every approach outlined in the book is followed at the Motley Fool. We have a cadre of stock pickers here at the Fool, and we pay them, so clearly we believe in their advice," Gardner said with a laugh. "It's just that they are taking a different approach."

Gardner explained that dividend investing, for example, is more relevant for older people who are looking for income or for younger people who are more conservative. "Is that my strategy? No, it's not. Am I comfortable with it? Definitely. Not only am I comfortable with it, but it's a living, breathing part of the Motley Fool."

"That's the 'motley' in Motley Fool," he said. "It isn't that one approach is superior to the others. It's about finding superior practitioners of each approach, and not just practitioners, but communicators — people that are effective at teaching and helping you learn which of these parachutes you're going to wear."

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