Can you become a billionaire through the stock market?

The charts in the infographics below shows how you can get rich from investing in the stock market. You need
a) to start young

b) invest regularly

c) achieve consistent annual returns

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But can you be a billionaire? Refer to the second chart. It shows the final sum if you invest $ 1,000 annually for different investment periods and different annual returns.

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For example if you can achieve 12% compounded annual return over 60 years, and you invest $ 1,000 annually, you will get $ 8 million at the end of the 60 years.

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Taking this logic, if you want to be a billionaire, you need to invest $ 125,000 every year with 12 % compounded annual return for 60 years.

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The irony is that if you have $ 125,000 every year to spare, I think you don't have to worry about being a billionaire.

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Note that Warren Buffett in his partnership days achieved 15 % compounded annual returns. So 12% is good for a retail investor. Secondly Warren Buffett became a billionaire not exactly from 100 % investing in the stock market. His Berkshire Hathaway is actually a business.

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The reality is that most of the billionaire investors make their money from being an entrepreneur as well as being a stock investor.

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But all in not lost. It is not that difficult to be a millionaire. You invest $ 1,000 every year for 60 years and achieve at 8% annual returns. The challenges are:

a) do you have the patience?

b) you have to learn how to invest to achieve consistent returns

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