can you make millions from stocks? Yes

A practical, evidence‑based guide explaining whether and how an investor can build a $1M+ or multi‑million portfolio from equities. Covers historical returns, vehicles, strategies, math scenarios, ...

2026-01-09 09:41:00

By Meta Cipher

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Can You Make Millions from Stocks?

Investors often ask: can you make millions from stocks — and if so, how likely is it for an everyday saver? This guide answers that question with clear definitions, historical context, practical math, strategy comparisons, and realistic risks. You will learn which account types and investment vehicles matter, how time and savings interact with compound returns, what common mistakes to avoid, and steps you can take to improve your odds — plus a short note on institutional trends affecting retirement plans as of Jan 15, 2026. Explore Bitget exchange and Bitget Wallet for trading and custody, and use the practical checklist at the end to act on what you learn.

Scope and definitions

When we ask "can you make millions from stocks" we mean: can an individual investor accumulate a portfolio valued at $1,000,000 or more (or multiple millions) by investing in publicly traded equities or equity funds over time. This article focuses on:

Included: U.S. and global listed individual stocks, exchange‑traded funds (ETFs), index funds, mutual funds, and professionally managed equity portfolios.
Excluded: windfalls such as inheritances, lotteries, direct private company sale proceeds (unless accessed via public markets), and crypto tokens (except where used for comparison).

We cover both building a $1M portfolio (a realistic target for many savers with time and discipline) and the rarer path to multi‑million wealth (which usually requires higher savings, exceptional returns, concentrated bets, or long time horizons).

Historical evidence and notable examples

History shows that broad equity markets have generated substantial wealth through compounding. The long‑term nominal return for the U.S. stock market (often proxied by the S&P 500) has averaged roughly 9%–11% per year over many decades, including dividends. When adjusted for inflation, the long‑run real return is commonly cited near 6%–7% annually.

These long‑term averages mean that consistent contributions reinvested over decades can produce large outcomes. Many individuals have become millionaires using diversified index funds or target‑date retirement funds combined with steady saving.

Separately, a small set of individual stocks have generated enormous returns. Historical multi‑bagger examples include companies like Amazon, Microsoft and Nvidia — early or concentrated holdings in such winners could turn modest stakes into multi‑million positions. But these examples are exceptional and subject to survivorship bias: for every big winner there are many firms that failed or produced modest returns.

Core principles that enable large accumulation

Several repeatable principles drive the difference between reasonably-sized portfolios and million‑dollar results:

Start early: time magnifies compound growth. Every decade earlier you begin materially reduces monthly savings required.
Stay invested through cycles: missing the market’s best days or selling after downturns damages long‑term returns.
Invest consistently (dollar‑cost averaging): regular contributions reduce timing risk and exploit market volatility.
Diversify: broad exposure to many stocks reduces the chance of catastrophic loss from a single company.
Control costs and taxes: low fees and tax‑efficient accounts improve net returns over decades.

Investment vehicles and account types

Which vehicle you choose affects taxes, behavior, and net returns:

Individual stocks: offer upside from concentrated winners but carry company‑specific risk. Behavioral biases (overconfidence, overtrading) and lack of diversification are common problems.
ETFs and index funds: low‑cost broad market exposure (S&P 500 or total‑market funds) is the most widely recommended path for many savers seeking market returns.
Mutual funds/active managers: can outperform, but persistent outperformance is rare after fees.
Retirement accounts (401(k), 403(b), IRAs, Roth IRAs, ISAs in the UK): offer tax advantages that compound over time; using tax‑advantaged accounts accelerates accumulation.

As of January 15, 2026, institutional discussions around adding private market assets to defined‑contribution plans continue but remain slow to roll out, highlighting that most savers’ retirement allocations will still use public equities and diversified funds for the near term (source: Cerulli Associates reporting via Yahoo Finance). This institutional context affects how retirees will access alternative return sources, but does not change the central role of public equities in building wealth today.

Common long‑term strategies that have produced millionaires

Broad index investing (buy‑and‑hold): Invest in an S&P 500 or total stock market ETF and add monthly contributions. Pros: low cost, diversified, historically robust. Cons: cannot beat the market except by luck; exposure to drawdowns.
Dividend growth investing: Focus on companies with growing dividends. Pros: income stream and compounding via reinvestment. Cons: sector concentration and slower capital appreciation in some cycles.
Growth (buy‑and‑hold) investing: Purchase high‑quality growth companies and hold long term. Pros: potential for outsized returns if you pick winners. Cons: requires research and risks overconcentration.
Concentrated bets (high risk): Small portfolio allocations to early or speculative picks that can potentially compound massively. Pros: outsized upside. Cons: higher likelihood of large losses; often requires luck and skill.
Blended strategies: Core index allocation with satellite concentrated or dividend holdings — balances diversification with selective upside exposure.

How much you’d need to invest — illustrative math and scenarios

The math below uses round assumptions for clarity. Results vary by actual return, fees, taxes, and timing. These scenarios assume a constant average annual return (compounded) and reinvestment. They are illustrative — not guarantees.

Common rule of thumb: with a long-term real return near 7% (nominal ~9%–10% depending on inflation), the monthly contributions needed to reach $1,000,000 over various horizons approximate:

20 years at 10% annual return: roughly $1,350–$1,600 per month.
25 years at 10%: roughly $800–$950 per month.
30 years at 10%: roughly $500–$600 per month.
35 years at 10%: roughly $300–$375 per month.
40 years at 10%: roughly $170–$230 per month.

Use these numbers as directional examples. Lower assumed returns raise the required savings dramatically; higher returns reduce required savings but are harder to achieve consistently.

Example: if you start investing $500/month at age 25 and earn 8% annually, by age 65 you would accumulate roughly $1,000,000. Small changes in return (e.g., 7% vs 9%) create large differences over multi‑decade horizons.

To reach multi‑millions (e.g., $3M–$5M) typically requires either much larger savings rates, a longer horizon, or above‑average returns (or a combination). For many investors the practical route to multi‑millions is a high savings rate plus disciplined investing plus time, not short‑term market timing.

Probability, time horizon, and required returns

Two variables dominate outcomes: time and average annual return. Because of compounding, each extra year matters. Achieving $1M is quite plausible for disciplined savers starting early; achieving $10M is rarer and usually involves higher capital, entrepreneurship, or exceptional long‑term returns.

Small shifts in average annual return matter: an extra 1% per year compounded over 30 years can increase final wealth by tens of percent. That is why minimizing fees and taxes — which reduce net returns — is crucial.

Risks, downsides and real‑world constraints

Market volatility and drawdowns: equities can fall 30%–50% in severe bear markets. Long horizons help but sequence‑of‑returns risk matters for those withdrawing funds near retirement.
Survivorship bias: media stories highlight winners; many failing or mediocre firms are invisible in headlines.
Taxes and fees: high fund expenses, trading commissions, and poor tax planning materially reduce net accumulation.
Liquidity and access: not all high‑return vehicles are liquid or available to retail investors; private assets remain limited for most retirement plans (see Cerulli reporting).
Behavioral errors: panic selling, market timing, and chasing momentum often destroy value.

Behavioral factors and common mistakes

Behavioral pitfalls explain why many investors underperform market averages:

Market timing: trying to buy low and sell high rarely beats a steady plan.
Overtrading: frequent trades rack up fees, taxes, and mistakes.
Overconcentration: excessive bets on a company (even a perceived winner) raise downside risk.
Herding and social media hype: chasing viral tips or influencer picks can be costly; younger investors increasingly consult social platforms, which increases exposure to risky, trendy assets.

Practical behavioral fixes: automate contributions, use low‑cost diversified funds for core holdings, set a written plan, and limit speculative capital to a small portion of total assets.

High‑risk and accelerated approaches (and their dangers)

Strategies that can accelerate wealth creation come with elevated loss probability:

Leverage and margin: borrowing to buy stocks amplifies gains but can force liquidations in downturns.
Options and derivatives: can deliver asymmetric payoff but require skill and can wipe capital quickly.
Speculative small‑cap or early‑stage stocks: the upside can be enormous, but many firms fail.
Crypto and nontraditional assets: high volatility and structural uncertainties increase risk.

These approaches may produce millionaires fast in isolated cases, but for most investors the expected outcome is lower and variance is high. Advanced risk management and capital allocation discipline are essential when pursuing these paths.

Case studies and illustrative stories

Index‑fund millionaire: a saver contributing consistently to low‑cost total‑market funds over 30+ years often reaches seven figures. This is the most common and reliable path described in financial education materials.
ISA Millionaire story (UK): examples exist of long‑term savers becoming millionaires within tax‑advantaged ISAs through steady contributions and market returns. These stories highlight the power of tax‑sheltered compounding.
Multi‑bagger stocks: hypothetical early investments in companies like Nvidia or Amazon illustrate outsized returns. For instance, a small stake in a company that grows thousands of percent over decades can turn several thousand dollars into millions — but these are exceptions and not a template.

Taxes, fees, and account optimization

Net returns depend heavily on taxes and fees. Key points:

Use tax‑advantaged accounts when possible (401(k), IRA, Roth variants, ISAs) to shelter gains or receive tax‑free growth.
Prefer low‑cost index ETFs/funds for the core of most portfolios; a 0.1%–0.5% expense ratio difference compounds to meaningful amounts over decades.
Understand capital gains rules and holding periods to minimize unnecessary tax events.
Rebalance strategically and consider tax‑loss harvesting where appropriate to improve after‑tax returns.

Practical steps to improve your odds

Start now — time is the most powerful ally.
Automate contributions — payroll deductions or automatic transfers reduce behavioral slip.
Make low‑cost diversified funds the portfolio core — they capture market returns minus minimal fees.
Keep an emergency cash buffer to avoid forced selling during downturns.
Limit speculative capital to money you can afford to lose.
Use tax‑efficient accounts and monitor fees; small savings compound.
Periodically review asset allocation and rebalance to maintain your risk profile.
Consider professional advice for complex tax or concentrated‑position situations.

Explore Bitget features for spot and derivatives trading and consider Bitget Wallet for custody of crypto assets if you choose to diversify outside public equities. Bitget offers tools to help implement automated contributions and portfolio management features designed for both new and advanced users.

When to seek professional advice

Consult a qualified financial advisor or planner when:

You have a large concentrated position that would materially affect your net worth.
Your tax situation is complex (business ownership, large capital gains, estate planning).
You are nearing retirement and need a withdrawal or distribution strategy.
You plan to use leverage or complex derivatives as part of your approach.

A fiduciary advisor can help tailor allocations to your goals, risk tolerance, and tax situation.

Institutional and retirement plan context (recent reporting)

As of January 15, 2026, according to reporting summarizing a Cerulli Associates study (Yahoo Finance), many defined‑contribution plan sponsors are cautious about adding private market assets to workplace retirement menus. Adoption is expected to be slow because sponsors worry about fees, liquidity, valuations, and fiduciary risk. Large asset managers are exploring co‑branded target‑date products and multi‑asset solutions that can include private credit, private equity and real estate, but mainstream availability to most retirement savers is limited for now. This reinforces that public equities and low‑cost diversified funds will remain core building blocks for most savers seeking to become millionaires through stocks in the near term.

References

"How to Make Money in Stocks in 2026: 6 Easy Steps" — NerdWallet
"How to Become a Millionaire by Investing" — U.S. News / Financial Advisors
YouTube interview: "Stock Market Million: How I Turned £500 A Month Into..." (ISA Millionaire story)
"Want to Earn $1 Million or More in the Stock Market? Here's What You'd Need to Invest Each Month." — Nasdaq / Motley Fool versions
"Want to Become a Stock Market Millionaire? Here's Exactly What It Takes" — The Motley Fool
"3 Stocks That Turned $1,000 Into $1 Million (or More)" — The Motley Fool (historical big winners)

Notes and caveats

This article is educational and informational, not personalized financial advice. Past performance does not guarantee future results. Outcomes depend on individual savings, return assumptions, taxes, fees, and market conditions.

Further exploration: for tools and trading features, explore Bitget exchange and Bitget Wallet to support diversified portfolio building and custody needs.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.