Lesson 17: Why Stocks Won’t Make You Rich

Value Investing 101

When people think about investing, they often hope it will make them rich. There’s a common belief that one or two good stock picks are all it takes to achieve financial independence. But that’s an illusion, and a dangerous one at that.

I’ve deliberately placed this lesson later in the series, to not discourage you, but to help you move forward with realistic expectations. Today, we’ll take a closer look at that dream and return investing to where it truly belongs: as a long-term strategy for building wealth, not for getting rich quick.

1. The Reality of Returns

Let’s say you’re exceptionally good at investing, achieving an average annual return of 19%, similar to Warren Buffett. Even then, starting with a solid €50,000, it would take you 18 years to reach your first million. And that’s assuming a return most investors can only dream of.

A good investor will more likely see annual returns between 10% and 12%, which means it would take about 27 years to hit that same milestone.

Want to build wealth through the stock market? Then you’ll need the patience to stick with it for 30 to 40 years. Only after that does the exponential effect of compounding start to show real results. For example, after 40 years with the same initial capital and return, you’d end up with about €4.6 million.

2. In the Beginning, Discipline Matters More Than Returns

Investing follows an exponential curve: in the beginning, your gains seem trivial. That’s normal.

Those who get discouraged by this slow start and chase quick wins by taking unnecessary risks usually end up worse off than if they’d simply stayed the course. Don’t get seduced by hype or so-called “golden tips.” Instead of getting rich, most people just end up... poorer.

As a beginner, your job isn’t to optimize, it’s to build. And you build with discipline, consistency, and by avoiding big mistakes.

3. Step One Is Increasing Your Investable Capital

If you’re starting with a relatively small amount of capital, chasing an extra 2% to 3% return per year won’t help you much.

Even if you begin with €50,000 or €100,000, the extra €1,000 to €3,000 you might gain annually isn’t worth the time investment. That time is better spent on advancing your career, starting a side hustle, or learning new skills that could earn you more money in the long run.

In the beginning, it’s better to spend your energy thoroughly analyzing just one or two stocks a year. The rest of your portfolio can be diversified through high-quality holdings. I deliberately don’t mention ETFs because, in my view, investing only becomes truly interesting once you understand what you own. You can learn something from holdings, but not from ETFs.

4. The Real Risk Isn’t in the Stock, It’s in You

Many people assume that high returns always come with high risk. That’s true... but only if you don’t know what you’re doing. In reality, the greatest risk doesn’t come from the stock itself, but from ignorance, lack of preparation, and impulsive behavior.

Investing only becomes dangerous when you take the wheel without ever learning to drive.

Buying a stock without understanding what the company does, how it makes money, or what it’s worth, is gambling. It’s like putting a child behind the wheel of a car. The route may be the same, but the risk skyrockets.

The promise of quick gains tempts many to take positions they don’t understand, often with money they can’t afford to lose.

Real returns come from managing risks, not from being reckless, but from buying strong companies at attractive prices, with enough margin for error. Patience, knowledge, and discipline are your only real safety net.

When it comes to investing, the better you understand what you’re doing, the lower the risk, and paradoxically, the higher your chances of success.

5. Investing Isn’t About Beating Others

A common trap for investors is the obsession with “beating the market.” As if success can only be measured by comparing yourself to an index or other investors. But that’s a misleading standard.

The real question is: Are you achieving your own financial goals? Will you be able to live comfortably later, support your children, and enjoy your retirement in peace?

You don’t have to run faster than everyone else, just fast enough to get yourself safely to your destination. Your path doesn’t have to be better than your neighbor’s; it just needs to fit your life, your needs, and your timeline.

Investing is not a competitive sport. It’s not a race. It’s a personal journey.

Those who keep looking in the rearview mirror lose focus on their own road. Your goal isn’t to beat the market, it’s to secure your financial freedom.

And you don’t achieve that by measuring yourself against others, but by staying true to your own strategy and goals.

6. Rich From One Stock or Business? It’s Possible.

The stock market (or forex market) is often sold as a place where you can get rich quickly. Many people are drawn in by success stories and sensational gains, but the truth is, these are rare exceptions.

Most people who have truly become wealthy through a single company did so by building that company themselves. They were entrepreneurs, not investors.

The myth that you can get rich from just one stock, by buying the right company at the right time, doesn’t hold up when you look at the real numbers and statistics.

The world’s wealthiest individuals owe their fortunes to their businesses, not their investments. They created value, built something, and held shares in it.

The difference is fundamental: they were the business. You’re just a shareholder.

As an investor, you can benefit from the value others create, but you’ll rarely get rich off a single stock. Your wealth will not come from luck, but from consistency.

Summary

Stocks are a powerful tool for growing wealth over the long term. But they’re not lottery tickets.

You won’t get rich from stocks, you build wealth through long-term discipline, sober thinking, and realistic expectations.

Those who understand this don’t dream of fast profits. They’re focused on building financial freedom, step by step.