What Would $10,000 Invested in Tesla Stock at its IPO Be Worth Now?

Data from J.P. Morgan Asset Management shows that individual investors typically trail the broader markets by a significant margin. For instance, while the S&P 500 Index ($SPX) returned 9.5% annually on average between 2002 and 2021, the average investor gained just 3.6% in this period. There are several factors contributing to this underperformance, which include a lack of discipline and an inability to withstand bear markets. 

While stock markets can be extremely volatile, this asset class has created generational wealth for investors who stay the course in equities over time and benefit from the power of compounding returns.