Math and common sense.
Take two stocks, one that grows at 5% annually, and one that tanks 50% in the first year and proceeds to grow 10% annually. The latter stock will take 16 years to overtake the former stock in price. That analysis does not take into account any accumulated gray hair or additional risk of downturn and loss of compounding.
On the other hand, if you purchased shares of a Dow Jones index fund via a dollar cost averaging scheme on the market’s peak day before the Great Depression, you would have doubled your money by 1936. Source
You should keep in mind the certainty of long-term inflation that is constantly eating away at your savings account.
All things considered and done right, value investing is a low-risk avenue to keep some of your assets from depreciating.
We will NEVER ask to control any of your banking and investing accounts. We will ALWAYS leave the final judgment call to you, as we believe your money is ultimately your responsibility.
We do not target 401Ks, IRAs, rollover accounts, or the like. Our target customers are people who would otherwise invest in index funds, mutual funds, and blue chip stocks.
We do not provide facilities to trade on our platform, and we hope we never will. Our journey is to optimize the quality of advice we give you.
We trust that you will personally verify all recommendations ShortRoad provides, and all financial decisions are ultimately your responsibility. ShortRoad simply seeks to automate a lot of the analysis beforehand.
Because we want to use this service that we’re building out, and we intend on providing the same level of service to you as we would provide ourselves. We won’t settle until ShortRoad gives us recommendations for companies we want to see in our personal portfolios.
We have not determined yet, though it would likely look something akin to $10 per month. This is because we’re a hosted service and we use third-party APIs that charge by the month, and because we seek to provide you value for as long as you’re signed up with us. We may offer additional plans if there is significant demand.
If you are interested in signing up and paying for this service, but don’t believe this price is reasonable, please let us know what price you believe is fair and justified. We would love your feedback.