can you get wealthy from stocks? Practical guide

Can You Get Wealthy from Stocks?

Asking “can you get wealthy from stocks” is a fundamental question for anyone thinking about long-term personal finance. This guide explains what that question means in the U.S. equities context, how stocks and stock funds create wealth, what strategies commonly work (and which don’t), realistic timeframes, the principal risks and failure modes, and practical steps to improve your odds — including how Bitget can help with trading and custody.

This article uses widely reported historical data and recent age-and-wealth findings. As of October 2025, according to USA TODAY reporting based on Empower and federal Survey of Consumer Finances data, average net worth rises substantially with age, with many 50-somethings holding average net worths near $1.4 million — a pattern driven in large part by stocks, homes, and time.

Overview / Summary

Short answer: yes, you can get wealthy from stocks, but not automatically and not without time, savings, diversification, discipline and attention to costs and taxes. Stocks and stock-based funds have historically offered higher long-term returns than many alternatives, enabling wealth accumulation via capital appreciation, dividends and the power of compounding. However, outcomes depend on how much you save, how long you stay invested, your asset allocation and behavior — and, importantly, on avoiding high fees, excessive leverage and emotional mistakes.

This guide covers:

• Historical performance context and why long-term averages matter.
• The three engines of stock-driven wealth: capital gains, dividends and compounding.
• Common strategies (index investing, dividend growth, concentrated growth bets, trading, leverage) and trade-offs.
• Realistic math examples for time-to-goal scenarios.
• Main risks and how wealthy investors differ.
• Practical rules to improve the odds that stocks will create meaningful wealth for you.

Throughout, the phrase “can you get wealthy from stocks” will be used to keep focus on the central reader question.

Historical Performance of Stock Markets

Stocks are ownership claims on businesses. Over long periods, equities have rewarded investors for bearing business and market risk.

• Long-term empirical returns: U.S. large-cap stocks (as represented by broad benchmarks) have produced nominal annualized returns historically in the range of about 8%–11% per year. Variations exist by period, index and measurement method (total return vs. price return).

• Volatility and sequence: Annual returns vary widely. Some years deliver double-digit gains; others deliver significant losses. That variance is why time horizon matters. Short-term results are noisy; long-term averages smooth volatility and better reflect the expected reward for risk.

• Past performance caveat: Historical average returns are informative but not guarantees of future returns. Structural changes, valuations, macro trends and unforeseen events can change average returns moving forward.

• Recent evidence on wealth by age: As noted above, as of October 2025, USA TODAY reported that average net worth increases with age and that stocks, homes and time are key drivers. The S&P 500 rose considerably over the prior decade, which helped many older households accumulate substantial portfolio values.

Why this matters for “can you get wealthy from stocks”: the long-term track record shows stocks can be powerful wealth engines, but the road involves large ups and downs that require time and discipline to navigate.

How Stocks Create Wealth

Capital appreciation

Capital appreciation occurs when the market price of a share rises above the price you paid. That appreciation reflects, in aggregate, investors’ expectations about a company’s future profits, cash flows and growth. For long-term wealth builders, holding shares of growing businesses or diversified baskets of companies allows portfolio value to rise as the underlying companies grow.

Key points:

• Realized vs. unrealized gains: Appreciation is unrealized until you sell. Taxes, transaction timing and your objectives determine when you convert unrealized gains into realized proceeds.
• Broad exposure: Owning a diversified fund spreads company-specific risk while capturing overall market growth.

Dividends and income

Dividends are cash payments companies distribute to shareholders. Dividend income contributes directly to total shareholder return and is especially significant when reinvested.

• Dividend reinvestment: Reinvesting dividends buys more shares, which then generate their own dividends — a compounding effect.
• Income vs. growth trade-off: Some stocks pay high dividends with slower price growth; others pay little or no dividend and reinvest profits for growth. Both approaches can build wealth but follow different paths.

Compounding returns

Compounding is central to the answer to “can you get wealthy from stocks.” Compounding means returns generate additional returns over time. Even modest average annual returns can multiply a principal many times across decades.

• Rule-of-72: A simple heuristic: divide 72 by the annual return to estimate years to double. For example, at 8% annual return, a portfolio roughly doubles every 9 years.
• Long horizons amplify compounding: Small, consistent contributions in early career years produce far larger results by retirement than identical contributions later in life.

Common Wealth-Building Strategies Using Stocks

Below are common approaches investors use to attempt to build meaningful wealth from stocks. Each has different risk-return trade-offs.

Buy-and-hold / Long-term investing

Description: Buying diversified index funds or broad-market ETFs and holding them for decades.

Why it works:

• Low costs capture the market’s long-run premium.
• Avoids frequent trading costs and poor timing decisions.
• Historically, passive strategies capture much of the market’s positive long-term return.

Practical notes:

• Suitable for most investors as a core allocation.
• Rebalancing and occasional tax-aware harvesting improve efficiency.

Dollar-cost averaging and regular contributions

Description: Investing a fixed dollar amount at regular intervals (e.g., monthly), regardless of market levels.

Why it helps:

• Reduces timing risk and smooths purchase prices across bull and bear phases.
• Encourages savings discipline, which is often the larger determinant of final wealth than small percentage differences in returns.

Dividend-growth investing

Description: Focusing on companies or funds that consistently raise dividends.

Why people choose it:

• Provides rising income and reinvestment opportunities.
• Dividend growers often have profitable businesses and may offer downside resilience, though not always.

Trade-offs:

• Some high-dividend companies grow slowly; income needs to be balanced against growth objectives.

Growth-stock / concentrated investing

Description: Concentrating capital in high-growth companies (e.g., technology or early-stage public companies).

Why it can create outsized wealth:

• Successful concentrated bets on rapidly scaling businesses can produce multi-bagger returns that dramatically increase net worth.

Risks:

• Higher volatility and higher chance of permanent loss. Concentration amplifies idiosyncratic company risk.
• Requires research, conviction and an acceptance of large drawdowns.

Active trading and speculation

Description: Short-term buying and selling, day trading, swing trading or speculative options plays.

Reality check:

• Most retail active traders underperform market benchmarks after fees, spreads and taxes.
• High churn increases behavioral errors; short-term trading demands skills and risk controls many retail investors lack.

Use of leverage and derivatives

Description: Borrowing (margin) or using derivatives (options, futures) to amplify exposure.

Why it’s risky:

• Leverage magnifies gains and losses and can produce rapid, large drawdowns or forced liquidations.
• Derivatives require specialized knowledge and risk management.

For the question “can you get wealthy from stocks,” leverage can speed wealth accumulation but also significantly raise the probability of ruin.

Realistic Outcomes and Timeframes

Answering “can you get wealthy from stocks” often comes down to simple math. Below are illustrative scenarios (not predictions) to show how starting capital, contributions, and expected returns interact.

Assumptions to keep in mind:

• Returns are hypothetical and for illustration only; actual returns vary.
• These examples ignore taxes and fees for simplicity; real outcomes will be lower after costs.

Examples (approximate):

1. Starting from $0 with regular savings:

• Save $500/month at a 7% annual return: after 30 years → about $540,000.
• Save $1,000/month at 7% annual return: after 30 years → about $1,080,000.

1. Lump-sum growth:

• Invest $100,000 up front at 8% annual return: after 20 years → about $466,000; after 30 years → about $1,006,000.

1. Combining lump sum and contributions:

• Invest $50,000 now and $500/month at 8%: after 30 years → roughly $700,000–$800,000.

1. Concentrated successful startup-like outcomes (rare):

• Early, concentrated stakes in rapidly scaling companies can turn small investments into multi-million results, but these outcomes are exceptional and subject to survivorship bias.

Time-to-$1M heuristic (illustrative):

• If you earn a 10% annual return, a lump sum of about $100,000 will take ~24 years to reach $1M. Monthly contributions dramatically shorten time to goal.

Key takeaway for the searcher asking “can you get wealthy from stocks”: consistent savings and reasonably high compound returns over decades are the reliable path for most people, while truly exceptional wealth from public stocks alone is relatively rare and often involves early concentrated positions in breakout companies.

Risks, Limitations and Failure Modes

No honest answer to “can you get wealthy from stocks” omits the principal risks.

Market risk and volatility

Stock prices move up and down. Severe bear markets can erase years of gains; recovery to previous highs can take multiple years.

Behavioral risks

People often hurt returns through emotional decisions: panic selling during declines, chasing hot sectors at peaks, or overtrading. Behavioral mistakes frequently cost more than poor asset choices.

Sequence-of-returns and timing risk

For retirees or those drawing income, having negative returns early in withdrawal years can dramatically shorten a portfolio’s life. That’s called sequence-of-returns risk and is a key retirement-planning concern.

Fees, taxes and inflation

High fees (fund expenses, trading costs), poor tax optimization and inflation reduce real wealth accumulation. Low-cost funds and tax-advantaged accounts improve net results.

Leverage and concentration risk

Using margin, options or holding concentrated positions can lead to large losses or account wipeouts. These strategies raise probability of permanent capital loss.

Best Practices to Improve Your Odds of Getting Wealthy from Stocks

The following steps are evidence-based ways to improve the likelihood that stock investing will help you build substantial wealth.

• Start early and maximize time in market. Time is the most powerful ally of compounding.

• Save consistently and try to increase your savings rate over time. Your savings rate often matters more than small return differences.

• Use tax-advantaged accounts (401(k), IRAs) where available and capture employer matches. Tax benefits can boost net accumulation materially.

• Favor low-cost, diversified index funds or ETFs for the core of your portfolio. Lower fees compound into meaningful differences over decades.

• Reinvest dividends and allow compounding to work.

• Rebalance periodically to maintain your desired risk profile; rebalance tax-efficiently.

• Maintain an emergency fund and avoid investing money you may need in the short term.

• Educate yourself and consider professional, fiduciary advice for complex situations (estate planning, tax-sensitive withdrawals, concentrated stock positions).

• Use reputable platforms and custody solutions. For trading and custody needs within the web3 and crypto-adjacent ecosystem, consider Bitget and Bitget Wallet for a secure and user-friendly experience.

These practices improve the probability that the answer to “can you get wealthy from stocks” will be “yes” over time.

How High-Net-Worth / Wealthy Investors Differ

Wealthy investors often have resources and access that change how they allocate capital:

• Bigger allocations to alternatives: private equity, venture capital, direct private deals, real estate and hedge strategies.

• Tax, estate and portfolio location strategies to improve after-tax returns.

• Access to bespoke vehicles and lower-fee institutional solutions.

• Ability to take concentrated private bets or provide early capital to growing businesses — outcomes that can create outsized wealth but are unavailable to most retail investors.

This is why retail investors can still build meaningful wealth from public stocks but why the very richest often rely on private ownership and entrepreneurship in addition to public markets.

Case Studies and Illustrative Examples

1. Broad-market buy-and-hold: An investor who contributed steadily to a diversified U.S. total market index fund from age 25 to 65, reinvested dividends and kept costs low, can plausibly retire with seven-figure nest eggs, depending on savings rate. This is the archetypal path that answers “can you get wealthy from stocks” in the affirmative for many people.

2. Early concentrated winner (outlier): Investors who owned small stakes in companies that later became dominant public firms sometimes achieved massive wealth. These stories are instructive but rare and subject to survivorship bias: for every winner, many early stakes failed.

3. Dividend growth path: An investor who focuses on dividend growers and reinvests dividends may enjoy steady portfolio income that compounds over decades, producing both capital appreciation and growing cash flow for retirement.

Each case illuminates possibilities and trade-offs, and all require attention to costs, taxes and risk management.

Myths, Misconceptions and Scams

• Myth: Stocks are a guaranteed get-rich-quick scheme. False. Stocks can generate wealth over time but are volatile and carry risk.

• Myth: You must pick individual stocks to become wealthy. Not necessarily. Broad market exposure plus disciplined savings is a proven path for many.

• Scams: Be wary of promises of guaranteed high returns, insider tips, or pressure to invest quickly. Fraudsters exploit greed and urgency; always verify claims and use regulated platforms like Bitget for legitimate trading and custody.

Practical FAQ

Q: Do I need a lot of money to start?
A: No. Many investors start with small, regular contributions and benefit from dollar-cost averaging. The combination of time, consistent savings and compounding is more important than a large initial sum.

Q: Can I get rich quickly?
A: Rapid wealth from public stocks is possible but uncommon. Quick windfalls are unpredictable and often involve high risk or luck. The reliable path for most is long-term investing and saving.

Q: Should I pick individual stocks or funds?
A: For most people, a diversified low-cost fund as a core holding is a prudent default. If you choose individual stocks, limit concentrated exposure and understand the risks.

Q: How much risk is appropriate?
A: Risk tolerance depends on time horizon, financial goals and temperament. Younger investors can generally accept more volatility; retirees should emphasize capital preservation and reliable income.

Practical Calculations — A Short Walkthrough

If you’re asking “can you get wealthy from stocks,” here are quick formulas and examples to test scenarios:

• Future value (lump sum): FV = PV * (1 + r)^n
• Future value (regular contributions): FV = C * [((1 + r)^n - 1) / r]

Where PV = present value, r = annual return, n = years, C = annual contribution (or converted for monthly). Plugging realistic r values (6%–9%) and reasonable contributions shows how compounding produces large differences over decades.

Example: Contribute $6,000/year at 7% for 30 years: FV ≈ $6,000 * [((1.07)^30 - 1) / 0.07] ≈ $6,000 * 94.46 ≈ $566,760. Increase contributions or return modestly, and outcomes scale materially.

How to Use Platforms and Tools Safely (Bitget)

If you decide to act on long-term stock or token exposure, choose service providers that prioritize security, transparency and user protection.

• Trading and custody: Bitget offers trading and custody services with a focus on security and a wide product suite. For users exploring tokenized equities or broadened asset exposure, Bitget Wallet provides custody and user-friendly management.

• Educational resources: Use broker and platform education centers to learn order types, tax consequences and risk controls.

• Avoid margin and complex derivatives until you fully understand how losses are amplified.

Note: This section is informational and not investment advice.

How Age, Home Equity and Time Interact with Stock Wealth

As reported in USA TODAY based on Empower and federal data, average net worth tends to rise with age, and three factors commonly explain the pattern: stocks, homes and time. As of October 2025, data showed that average net worths increased significantly through the 50s and 60s, reflecting decades of accumulation and market gains.

Two important observations from age-based data:

• Compounding and sustained savings over decades create outsized benefits later in life.
• Housing equity often complements stock wealth: paying down mortgages and property appreciation add materially to household net worth.

These findings reinforce that “can you get wealthy from stocks” is best answered in the context of long-term planning and diversified asset accumulation.

Final Notes on Probability and Expectations

Be realistic: while stocks are a historically powerful engine for increasing net worth, becoming extraordinarily wealthy solely through publicly traded stocks is uncommon for retail investors. Most millionaires accumulate wealth through disciplined savings, long investment horizons, home equity and, for some, entrepreneurship or private investments.

However, for many households, owning stocks via diversified funds and saving consistently is the most reliable path to building meaningful wealth.

Further Reading and Tools

See also: compound interest, index fund, diversification, portfolio allocation, dividend investing, behavioral finance, private equity.

References and Further Reading

• U.S. News — How to Become a Millionaire by Investing
• Investor.gov (SEC) — Build Wealth Over Time Through Saving and Investing
• NerdWallet — How to Make Money in Stocks (2018 and 2026 guides)
• Investopedia — long-term investing article
• QuickAndDirtyTips — How Do Wealthy People Invest Money?
• Kiplinger — What the Rich Know About Investing That You Don't
• Supplemental: Corizo — How Do People Get Rich From Stocks?
• As of October 2025, according to USA TODAY reporting on Empower and the federal Survey of Consumer Finances: average net worth rises with age, with averages showing 50-somethings near $1.4 million in aggregate measures.

More Practical Steps — What You Can Do Next

If you are exploring whether “can you get wealthy from stocks” applies to your situation, consider these actions:

• Start a regular savings plan into diversified low-cost stock funds.
• Open tax-advantaged accounts and claim employer matches.
• Build an emergency fund before taking material market risk.
• Learn platform mechanics and custody; consider Bitget and Bitget Wallet for secure access and user-friendly tools.

Explore Bitget features and educational resources to help execute a long-term plan and manage positions securely.

Closing thoughts — Further exploration

Long-term, disciplined exposure to stocks has created wealth for many investors. If you ask “can you get wealthy from stocks,” the constructive answer is: yes, it is possible and common for disciplined savers who combine a long time horizon with diversified, low-cost exposure and smart financial habits. It’s not guaranteed, and it requires attention to risks, costs and behavior. Start early, save consistently, keep costs low, and use reputable platforms and custody solutions such as Bitget to help manage and execute your plan.

Want to explore practical next steps? Learn more about building a diversified portfolio, setting up recurring investments, and secure custody with Bitget Wallet.