Top 3 Investments of the Last 100 Years

How the Smart Money Grew

LifeWrap Scholars Investing, Wealth Building 0

How the Smart Money Grew—and What We Can Learn From It

In a century marked by world wars, financial crashes, booms, bubbles, pandemics, and technological revolutions, three investments have stood out not just for their returns, but for their resilience and long-term impact on wealth building. These aren’t just historical success stories—they’re timeless lessons for anyone serious about investing.

If you’re wondering where the smart money went over the last hundred years, look no further than these three iconic investment vehicles:

1. U.S. Stock Market (S&P 500)

The Backbone of Global Capitalism

Why it stands out:

Since its inception in 1926, the S&P 500 has become the benchmark for U.S. and global equities. It represents the 500 largest publicly traded companies in the U.S. and has averaged returns of about 10% annually over the past century.

Had you invested $1,000 in the S&P 500 in 1926 and reinvested dividends, your investment would now be worth over $15 million (adjusted for inflation).

Advantages:

Long-term compounding power
Easy access via index funds (e.g., Vanguard VOO)
Diversified across all major sectors

⚠️ Disadvantages:

Short-term volatility
Requires a long time horizon
Vulnerable to economic downturns

💬 Expert opinion:

“Over long horizons, no other asset class rivals the U.S. stock market in consistent wealth creation,” says Warren Buffett, who famously recommended that most investors just buy an S&P 500 index fund and hold.

🪙 2. Gold

The Safe Haven for Uncertain Times

Why it stands out:

Gold has been a store of value for over 5,000 years, but even in the last 100 years, it has proven its worth. From $20.67 per ounce in 1920 to over $2,300 per ounce today, gold has preserved purchasing power through inflation, wars, and financial collapses.

It’s not about beating the market—it’s about hedging against it.

Advantages:

A hedge against inflation and currency devaluation
Non-correlated with stocks or bonds
Universally recognized and tradable

Disadvantages:

No yield or dividends
Price can be volatile in the short term
Storage and security issues if held physically

💬 Expert opinion:

“Gold is insurance, not an investment in the traditional sense,” says Ray Dalio, founder of Bridgewater Associates. He recommends allocating 5–10% of your portfolio to gold for long-term protection.

3. Real Estate (Global Residential Property)

The Wealth Creator You Can Live In

Why it stands out:

Property has quietly outperformed inflation for decades. Real estate investment—whether through direct home ownership, rental properties, or Real Estate Investment Trusts (REITs)—has created more millionaires globally than any other asset class.

According to MSCI Global Property Index, long-term global residential real estate returns have hovered between 6–8% annually, factoring in capital appreciation and rental income.

Advantages:

Tangible asset with utility
Rental income stream
Hedge against inflation

Disadvantages:

Illiquid and expensive to buy/sell
Requires active management (unless via REITs)
Sensitive to interest rate hikes and local policy changes

💬 Expert opinion:

“Real estate is still one of the best investments for building generational wealth,” says Barbara Corcoran, real estate mogul and Shark Tank investor. “It’s slow, but steady—and beats volatility.”

Final Thoughts: What History Teaches Us About Wealth

These top 3 investments—the S&P 500, gold, and real estate—didn’t just survive the chaos of the 20th and 21st centuries. They thrived. Each served a different purpose: growth, preservation, and income. Together, they form the foundation of what financial advisors call a “balanced, diversified portfolio.”

But here’s the real lesson: Consistency beats timing.
Those who stayed invested—through wars, recessions, and pandemics—ended up building real wealth. The key isn’t predicting the next Bitcoin or meme stock. It’s investing in what’s proven to work over time.