I was scrolling through Twitter earlier this week when I saw yet another thread about an investor who’d “10x’d their portfolio in 18 months” with crypto and tech stocks.
The replies were predictable, full of people begging for stock and crypto picks.
But as I scrolled through the comments, it hit me that those people were missing something critical: for every flashy success story you see online, there are dozens of spectacular failures that never make it to social media. Nobody posts about their portfolio getting cut in half.
And this got me thinking again about something most investors never want to hear: the flashiest strategies are often the worst for preserving and building wealth.
The Flashy Trap
So many investors get caught up chasing higher returns because they think that’s where real wealth is created.
They’ll accept massive volatility, justify years of losses, and convince themselves that one big year will “make up for everything.”
I’ve now seen this play out numerous times. An investor will ride the stock market rollercoaster, celebrating 25% gains one year while conveniently forgetting the 30% loss the year before. They tell themselves the math all works out in the long run.
But does it?
What The Math Actually Says
Last year, my friends at Aspen Funds put together a simple comparison that visualized the price of volatility. And while I knew directionally what the results would be, seeing the full math was still pretty eye-opening.
Scenario 1:
You start with $100,000 and experience the typical stock market / growth stock volatility over 30 years. Some years you're up 20%, others you're down 15% or more. In this example, the average yearly stock market return over the 30-year period is 8%…but you’ve got those brutal drawdown years mixed in.
Result: Around $600,000 after 30 years. A 500% total return doesn’t seem too bad, does it?
Scenario 2:
You make a boring, consistent 11% every single year for 30 years. No big wins, no painful losses. Just steady, predictable growth.
Result: Almost $2.3 million. A 2,100% total return.
In case you skipped the numbers above: the “boring” approach generates over 4x more wealth than the flashy, volatile strategy.
Why Volatility Steals Your Future
Volatility isn’t just uncomfortable – it destroys the foundation of wealth building.
When you lose 20% in a down year, you need a 25% gain just to get back to even. Even if you can achieve this in a single year (impressive), that “catch-up” year isn’t building wealth, it’s just recovering what you lost.
Meanwhile, the person making “boring” 11% returns? They’re compounding every single year, building wealth on top of wealth with no interruptions.
It's not sexy. Nobody’s jumping up and down over 11% annual returns. But the math shows us consistency is the clear winner.
It’s about hitting singles and doubles over and over again. Not striking out constantly while hoping for the occasional home run.
Why I Love Cash Flow
This is exactly why I’m drawn to cash-flowing real estate investments.
The returns might not be earth-shattering (typically 8-12% annually) but they’re predictable. Our tenants pay rent every month, and our borrowers make their debt payments. We collect that cash flow whether the stock market is up, down, or sideways.
Whether it’s direct rental properties, private credit funds, or syndicated apartment deals, the beauty is in the consistency. No 30% swings. No sleepless nights watching portfolio values crater.
Just steady, boring, wealth-building returns.
The Boring Truth
Just remember this any time you see one of those flashy return stories: they’re mostly noise.
The real winners (in other words, the people building lasting wealth) are probably doing it quietly, consistently, and without much fanfare.
They’re quietly building real wealth while everyone else chases the next shiny object.
So here’s my question: are you ready to be boring? Because boring just might be the most exciting thing you can do for your financial future.