In a study that looked at investment returns from 2004 through 2015, 75th percentile had a return of 50% while the top 0.1% had a 140% on the same invested dollar. They risk more and higher risk investments comes with higher return.
The stocks have higher return than bonds. By investing in stocks, the rich make capital work for them. The top 10% net worth is $1,224,000. With an average annual return of 10% on stocks, they would have $1,346,400 after a gain of $122,400 in one year.
This is why the rich keeps getting richer.
Lesson: Ask, “How do I get a higher return on my principle?”