Key Competencies

Solo Research

Jobs To Be Done

Journey Mapping

Decision Trees

Selling a Stock

Overview

  • Created a journey map based on the varied processes users take when deciding to sell a stock

  • Interviewed expert stock investors to learn the optimal process for selling a stock under various conditions

  • Designed a “pocket stock advisor” tool that helps users decide whether or not to sell a stock

Background

The Motley Fool has a investment philosophy, backed by the performance of stock recommendations over the last 30 years, that can be boiled down to two statements: “hold stocks for 5 years” and “hold 25-35 stocks.” The Motley Fool does not recommend selling stocks often because they are confident that their stocks will outperform the market in the long run. However, the lack of guidance about selling stocks can cause members to feel abandoned when they are in a situation when selling a stock could be necessary. For this project, I attempted to answer two questions:

  • What do users do when they sell as stock?

  • What should users do when they sell a stock?

“The most important factor I consider [when making a decision to sell a stock is the] loss in the position. I’ll ride out something for a while, but if something isn’t going anywhere and I don’t feel there’s any prospects, then I just might liquidate it to put it into something else. But if something’s not performing as it should, then I assess, do I want to take that loss?”
— Motley Fool Backstage Member

Methodology

Exploratory interviews were a natural methodology for understanding the user dynamics behind selling a stock, so I took a Jobs to be Done approach to writing the research questions and script for this project. I recruited 9 premium members from The Motley Fool Backstage email list with the help of the Business Intelligence Team. During interviews, users spoke passionately about the uncertainty they feel when selling a stock. It was clear to me that with so many questions, users would value the chance to know what experts think about their personal situation. The next step was to repeat the interview with an audience of experts - 6 Motley Fool Investment Analysts.

Key Takeaways

Motley Fool Analysts

  • Analysts make investment theses about stocks, a statement about why the company’s value will increase over time based on their research on the stock

  • Leaving a stock in the stock market is the best chance that the stock will make money, so only sell stocks when an investment thesis is “broken”

  • If someone needs cash immediately, its better to pull from savings than from the stock market

Motley Fool Backstage Members

  • Members are bought into The Motley Fool’s investment philosophy, and generally don’t like to sell their stocks

  • When a member considers selling a stock, it is usually because the stock price has fallen or stagnated, and they would rather use the money elsewhere

  • Selling a stock is a difficult process that usually involves tracking the stock for 1-3 months while making a decision

A map of the journey a Motley Fool Backstage user takes when they reluctantly decide to sell one of their stocks.

Outcomes

After speaking with members and analysts, I developed the following resources:

  • Journey Map: Selling a Stock

  • Analyst Decision Tree

The goal of the analyst decision tree was to chart out all of the advice that Motley Fool analysts would give a member in unique contexts, and to adapt that information into an appealing quiz-like format. Users click through the experience, called The Pocket Investor, answering questions about a stock they are considering selling. It encompasses many financial situations, everything from “I need money for an emergency” to “I don’t think this stock will make money because something has changed in our society.” At the end of the experience, The Pocket Investor presents users with actionable advice and links them to relevant Motley Fool for their financial and personal situation.

The Pocket Analyst tool is currently being expanded on to be pitched to leadership as a tool exclusive to members who have subscribed to the Epic Bundle, a mid-tier service. These members typically come into The Motley Fool having already owned stocks, and need help figuring out which ones to sell and which ones to hold on to. This proposal also won a participation prize for an internal idea-pitch competition and was selected for an alternate speaking engagement at IxD23.

The decision tree that I made by identifying and organizing the key themes of the analyst advice collected in expert interviews.