Discover why stocks have historically been the best way to build wealth over time. Learn about compounding, historical returns, and how to stay the course.
Over the long term, stocks have outperformed every other major asset class – including bonds, real estate, and gold. The reason is simple: stocks represent ownership in productive businesses that grow their earnings and dividends over time.
Since 1926, the U.S. stock market (S&P 500) has delivered an average annual return of about 10% before inflation. While returns are never guaranteed, history shows that patient investors are rewarded.
When your returns generate their own returns, wealth grows exponentially. A $10,000 investment earning 8% annually becomes $46,610 in 20 years – without adding a single dollar.
Inflation erodes purchasing power. Stocks have historically returned 6‑7% above inflation, preserving and increasing your real wealth.
Stocks are riskier than bonds or cash, so investors demand a higher return – the "equity risk premium". Over decades, that premium adds up.
Even with crashes, the market tends to revert to its long‑term trend.
Even starting at the worst possible time (1929), a 20‑year hold delivered positive real returns.
The 1980s and 1990s saw a massive bull run.
See how your money can grow with the power of compounding. Adjust the sliders and see the future value.
This is a simplified projection. Actual returns vary, and past performance does not guarantee future results.