can you be rich from stocks?

can you be rich from stocks?

Short answer up front: yes — many investors have built substantial wealth via stocks — but whether you will depends on time, savings, returns, risk tolerance, and behavior. This article explains how stocks create wealth, how long it typically takes, the math behind compounding, realistic scenarios, major risks, and practical steps you can use (including using Bitget services where appropriate) to pursue long-term equity investing.

Introduction / Summary

The question "can you be rich from stocks" captures a common investor hope: turning public equity exposure into lasting wealth. In broad terms, stocks create wealth through capital appreciation, dividends, and the power of compounding over time. Historical U.S. equity returns show that broad-market exposure has rewarded patient, disciplined investors, but outcomes vary widely by timing, choice of holdings, costs, taxes, and behavioral decisions.

This article is U.S.-centric in its market examples, neutral in tone, and grounded in public research. It does not offer personalized investment advice. References and data points are noted so readers can verify claims and test assumptions with calculators or planners. Where actionable execution is discussed, Bitget and Bitget Wallet are highlighted as recommended trading and custody options consistent with platform guidelines.

Historical performance and empirical evidence

Long-term market returns

When asking "can you be rich from stocks," the first place to look is long-run average returns. Broad U.S. indices such as the S&P 500 have historically returned roughly 7–10% per year after inflation, and roughly 9–11% nominally depending on the exact period and dividend reinvestment.

As of Jan. 10, 2026, an analysis by The Motley Fool cited a roughly 13.5% annualized nominal return for the S&P 500 over one recent 10-year window; shorter windows can show higher or lower numbers depending on market cycles. Historical averages include dividends — reinvested dividends materially increase long-term returns.

Dividend reinvestment and the inclusion of total return (price change plus dividends) are crucial. Reinvested dividends compound, boosting the effective annual growth rate over decades. The Balance and NerdWallet provide accessible breakdowns showing how reinvestment changes multi-decade outcomes.

Notable historical examples

Some investors became wealthy through concentrated early stakes in companies that grew enormously. Early shareholders in firms that became dominant (for example, companies that scaled from startup to behemoth over many years) captured outsized capital appreciation.

Other millionaires were built by broad-market investors who contributed regularly to index funds and rode decades of market growth. Both paths exist: concentrated winners create dramatic outliers; diversified, long-term compounding produces more predictable accumulation for many households.

How people get rich from stocks — primary mechanisms

Compounding and time in the market

The single most powerful mechanism is compound return: gains that generate further gains. The longer money stays invested, the more compounding magnifies growth.

Dollar-cost averaging — investing fixed amounts at regular intervals — reduces the risk of poor timing and harnesses volatility as an advantage. U.S. News and The Balance emphasize that time in the market, not market timing, is the dominant driver of long-term success.

Capital appreciation via growth stocks

Investing in companies that grow revenues and earnings rapidly can yield outsized returns. Growth stocks can multiply an investor’s capital manyfold if the company scales successfully.

However, growth investing typically requires concentration or smaller, earlier-stage positions and involves higher idiosyncratic risk: many high-growth companies fail or disappoint. As The Motley Fool and Corizo note, a small number of winners often drive a large share of total market gains.

Dividend and income investing

Dividend-paying stocks — especially those that raise dividends over time — provide income and a cushion during drawdowns. Reinvested dividends accelerate compounding and can account for a sizable portion of long-term stock returns.

Nasdaq and The Balance provide examples of dividend-growth strategies that produce steady wealth accumulation without relying on outsized capital appreciation.

Broad-market / index investing

Index funds (S&P 500, total-market ETFs) offer diversified exposure to the market at low cost. For many investors asking "can you be rich from stocks," broad-market investing is the most reliable, low-effort route.

NerdWallet and Nasdaq recommend low-cost index funds for most long-term accounts because fees, diversification, and simplicity compound into better outcomes for many savers.

Active trading, leverage, and alternative strategies

Active trading, margin, options, and other leveraged strategies can generate big gains in short periods but raise the probability of significant losses. Yahoo Finance and Corizo highlight that high-risk paths can occasionally produce rapid wealth but are statistically unlikely for most retail traders and require advanced risk controls.

How much does it take and how long will it take?

Illustrative math and scenarios

To answer "can you be rich from stocks" concretely, consider example paths to $1,000,000 using different assumptions.

• Scenario A — Early start, steady savings:

  • Starting at age 25 with $5,000 initial investment and $600 monthly contributions (about $7,200/year).
  • Assumed nominal return: 8% annually.
  • Outcome: roughly $1,000,000 in ~30 years. Compounding and steady savings matter.

• Scenario B — Later start, higher contributions:

  • Starting at 35 with $0 initial and $1,500 monthly contributions ($18,000/year).
  • Assumed return: 7% annually.
  • Outcome: roughly $1,000,000 in ~25 years.

• Scenario C — Lump sum + higher return (growth stock outperformance):

  • $100,000 one-time investment that delivers 12% annualized.
  • Outcome: ~$1,000,000 in ~18 years.

These are illustrative only. Actual outcomes depend on fees, taxes, sequence of returns, and luck. NerdWallet and Motley Fool provide interactive calculators to test variations.

Role of starting capital and contributions

Starting capital reduces time to target, while regular contributions reduce dependence on high returns. The interaction is multiplicative: a modest early balance plus disciplined saving yields far better odds than hoping for a single home run.

A key insight: compound doubling times matter. At 7% annual return, a portfolio doubles roughly every 10 years; at 10% it doubles every ~7 years. Over 30–40 years, multiple doublings can transform modest savings into large sums.

Risk, probability, and behavioral factors

Market volatility and drawdowns

Stocks are volatile. Bear markets can erase large portions of value in months. Long-term investors tolerate these drawdowns to capture average returns, but not everyone can endure the swings.

Sequence of returns risk matters for those near spending age: a deep early-career rally followed by a severe decline near retirement can materially reduce a portfolio’s sustainable withdrawal rate.

Survivorship and concentration risk

The reality of equity returns is skewed: a handful of firms often produce a large share of market gains. Concentrated single-stock bets can be lucrative when they hit, but many single companies go to zero or struggle for decades.

Survivorship bias distorts casual observations: stories of early Microsoft or Amazon investors are instructive but represent outliers among many failed startups.

Behavioral biases and common mistakes

Common behaviors that reduce long-term wealth include market timing, panic selling, chasing past winners, overtrading, and paying high fees. U.S. News and Nasdaq emphasize discipline, plan-based investing, and avoidance of emotional decision-making.

Practical strategies and best practices

Long-term buy-and-hold and diversification

A diversified, buy-and-hold portfolio reduces idiosyncratic risk and increases the probability of capturing the long-run market premium. The Motley Fool and Nasdaq recommend broad diversification across sectors and market caps for most investors.

Diversification also includes non-equity assets (bonds, cash equivalents, real estate) to manage risk and align with goals.

Dollar-cost averaging and automatic investing

Automating contributions (payroll deduction, auto-invest features) enforces discipline and captures volatility advantage via dollar-cost averaging. NerdWallet highlights that consistency often outperforms attempts to time the market.

Bitget users can automate recurring purchases and use Bitget Wallet for custody to maintain a long-term plan while leveraging Bitget’s features for execution.

Portfolio construction and rebalancing

Basic rules:

• Decide an asset allocation aligned with goals and risk tolerance.
• Rebalance periodically to maintain target weights (e.g., annually or when allocations drift by a set threshold).
• Use low-cost ETFs or mutual funds for core holdings to minimize drag from fees.

Use of tax-advantaged accounts and tax considerations

Tax-advantaged accounts (401(k), IRA, Roth IRA in the U.S.) accelerate wealth building by deferring or eliminating taxes. Maximize employer match where available. The interplay of tax rules and account types is important; consult a tax professional for specifics.

Costs, fees, and their long-term effect

Broker fees, fund expense ratios, and taxes

Fees compound against you. A difference of 0.5–1% in annual fees can reduce a portfolio’s long-term balance by tens to hundreds of thousands of dollars over decades.

Choose low-expense index funds and low-cost execution. Bitget aims to offer competitive fee structures; when evaluating any platform, compare commission schedules, spreads, and fund expense ratios.

Taxes on capital gains and dividends reduce net returns. Tax-efficient placement (holding tax-inefficient assets in tax-advantaged accounts) and long-term holding (lower long-term capital gains rates in many jurisdictions) matter.

Alternative and higher-risk routes to wealth

Concentrated bets, venture-like opportunities, and options trading

Faster routes to wealth include concentrated stakes in private or early public companies, options trading, or venture-style investing. These paths offer higher upside but materially higher probabilities of loss.

Yahoo Finance and Corizo document examples where speculative strategies have both enriched and ruined investors. For most retail investors, a small allocation to higher-risk ideas (within risk tolerance) rather than full concentration is prudent.

Leverage, margin, and derivatives

Leverage multiplies gains and losses. Margin calls can force liquidation at the worst times. Options and derivatives require expertise and strict risk controls. These are not recommended as primary strategies for most long-term savers.

Common misconceptions

“Get rich quick” myths

Sustained wealth from stocks is typically built over years, not weeks. Headlines of sudden multi-bagger gains obscure the rarity and risk of such outcomes.

Confusing luck with skill

Visible success stories can be luck-driven or the product of early timing. Survivorship bias makes successes more visible than failures. Objective analysis and probability thinking reduce overconfidence.

Case studies and illustrative scenarios

Example: long-term index investor

A hypothetical investor starts at 30, invests $500/month into a total-market index fund, and never sells. With an assumed 8% annual return, by 60 the investor’s portfolio can exceed $1M thanks to compounding and consistent contributions. This is a realistic, commonly replicated path.

Example: early investors in high-growth stocks

Concentrated early investment in a company that grows 20–30% annually for many years can turn small savings into large fortunes. But this path required early access, conviction, and tolerance for extreme volatility.

Example: failed speculative bets

High-frequency trading, margin, or speculative single-stock swings can and do wipe out accounts. Public stories often highlight winners but less frequently the many who lost capital attempting the same trades.

Who is likely to become wealthy from stocks?

Typical profiles and required behaviors

Common traits among those who accumulate wealth in equities:

• Start early to maximize compounding.
• Save and invest consistently.
• Use low-cost, diversified funds for core holdings.
• Maintain discipline during market downturns.
• Control costs and taxes.

A minority achieve wealth via concentrated, high-risk bets; a larger share do so via steady saving and long-term market participation.

Regulation, investor protection, and ethical considerations

Markets are regulated to protect investors through disclosure and enforcement. Fraud and scams exist; perform due diligence and avoid offers that promise guaranteed high returns.

When using trading platforms, choose reputable providers and secure custody solutions. For crypto or tokenized equity exposure, Bitget Wallet is recommended for secure custody under Bitget’s service model.

Tools, resources, and further reading

Recommended reading and authoritative sources

• U.S. News: practical guides on becoming a millionaire by investing.
• The Motley Fool: long-term investor case studies and market analyses.
• NerdWallet, Nasdaq, The Balance: how-to resources and calculators.
• Corizo, Yahoo Finance, USA TODAY: news and empirical studies on net worth and market outcomes.

As of Oct. 2025, Empower reported sizable increases in average net worth for older cohorts; that research underscores the combined effect of stocks, homes, and time in wealth accumulation.

Calculators and planning tools

Use compound-interest and retirement planning calculators to test scenarios. Adjust savings rate, return assumptions, fees, and time horizon to see realistic outcomes. Many broker platforms — including Bitget — provide calculators and automated contribution tools to operationalize plans.

Frequently asked questions

Q: How likely is it to get rich from stocks? A: It depends. For many, steady investing in broad markets over decades makes reaching millionaire status plausible. Rapid wealth from stocks is possible but less probable and riskier.

Q: Is buying the S&P 500 enough? A: Buying the S&P 500 has historically produced strong long-term returns and is a pragmatic core holding for many investors, but diversification across asset classes and consideration of goals matters.

Q: What returns should I expect? A: Historical nominal U.S. equity returns have averaged roughly 8–10% annually over long windows, but future returns are uncertain. Use conservative assumptions for planning.

Q: When should I use active trading? A: Active trading requires expertise and risk capital. For long-term goals like retirement, passive core allocations are typically recommended by major personal finance sources.

References

• "How to Become a Millionaire by Investing" — U.S. News (source used for practical steps and calculators).
• "How Do People Get Rich From Stocks?" — Corizo (overview of mechanisms).
• "How to Make Money in Stocks in 2026: 6 Easy Steps" — NerdWallet (practical steps, DCA guidance).
• "5 Fastest Ways To Become Rich by Investing in the Stock Market" — Yahoo Finance (discussion of high-risk paths).
• "Want to Become a Stock Market Millionaire? Here's Exactly What It Takes" — The Motley Fool (case studies and math).
• "How To Make Money In Stocks" — Nasdaq (dividends, trading, and tax basics).
• "How can I make money off the stock market" — USA TODAY (net worth by age data; includes Empower data cited below).
• "Getting Rich From Stocks: The Mathematics of Long-Term Investing" — The Balance (compounding math and examples).

Note on timeliness: As of Oct. 2025, Empower data cited by USA TODAY showed the average 50-something American had an average net worth of about $1.4 million (Empower users); the Survey of Consumer Finances (2022) reported comparable age-based wealth accumulation patterns. As of Jan. 10, 2026, The Motley Fool analysis noted multi-year S&P 500 returns that illustrate how compounding amplified wealth for long-term holders.

Appendix / Calculations

Compound interest formula

Future value (FV) = P * (1 + r)^n + PMT * [((1 + r)^n - 1) / r]

Where:

• P = initial principal
• r = periodic interest rate (annual nominal return)
• n = number of periods (years)
• PMT = periodic contribution (annual or monthly adjusted to r)

Example: $5,000 initial, $7,200/year contributions, 8% annual return, 30 years → use a compound calculator to verify ~$1,000,000 outcome.

Notes on assumptions

Assumptions in examples exclude fees and taxes for simplicity. Real outcomes require subtracting fees, considering taxes on distributions, and accounting for inflation.

Notes on scope and limitations

This article focuses on publicly traded equities and long-term investing principles, primarily in the U.S. market. Historical returns do not guarantee future performance. Individual results vary.

Next steps and where Bitget fits in

If you are exploring long-term equity investing and tools to implement a plan, consider these practical steps:

• Define financial goals and time horizon.
• Open appropriate accounts (tax-advantaged where available) and set up automated contributions.
• Use low-cost, diversified funds for core holdings; consider selective exposure to growth or dividend strategies within risk tolerance.
• Track fees and taxes and rebalance periodically.

For execution and secure custody, Bitget offers trading and wallet services suitable for retail investors who want a reliable platform. Explore Bitget’s features, automated investing tools, and Bitget Wallet for custody solutions.

Further reading and calculators are available from the sources listed in References. Testing scenarios with conservative return assumptions and realistic savings rates is the best way to answer "can you be rich from stocks" for your personal situation.

This article is informational, neutral, and not investment advice. Data points cite publicly available sources; readers should verify figures and consult licensed advisors for personal guidance.