“The stock market will be there after you make your fortune…”

So says investment newsletter analyst Mark Hulbert. In an article for MarketWatch, Hulbert explains a common misconception perpetuated by the financial press: You can get rich through investing. He notes the minimum net wealth of the Forbes 400 “superrich” is $1.55 billion:

 

Imagine if you had a $100,000 portfolio at age 25… even if you were that well off in your mid-20s, your portfolio would have to turn in a 27.3% annualized return over the next 40 years to reach this $1.55 billion threshold by the time you retire at 65.

While 27.3% returns on your investment are possible over the course of a given year… maintaining that rate is impossible over decades. Even the greatest investor of all time, Warren Buffett, can’t achieve consistent returns that high (his lifetime average returns come in around 20%). Consider the chart below…



Now this may come as a shock to some… but it won’t surprise regular Daily readers. They know how the vast majority of the superrich acquired their wealth: They built businesses. They used their entrepreneurial energies to create something the world needs… then invested in themselves to turn their ideas into businesses that service those needs. For more insight, consider our next item from Mark…