Did you know that, historically, the U.S. stock market has trended upward by an average of about 10% a year over the long term? Of course, there are ups, downs, and plenty of volatility in between—but zooming out over decades, the growth is undeniable. That brings us to an interesting question: if the companies behind our favorite products are creating wealth year after year, why not invest in their success instead of just buying what they sell?

Let’s look at this through a lens you probably know all too well: everyday purchases.

The Cost of Stuff vs. the Value of Ownership

Picture this—you’ve had your eye on the latest iPhone. It’s beautiful, it’s powerful, and it costs about $1,000. You swipe your card, unbox it, and the moment you turn it on, it’s already worth less than what you just paid.

Same story with those Nike sneakers—$200 for a pair that will eventually wear out—or that Tesla you’ve dreamed of driving, which can set you back $60,000. The moment you drive it off the lot, it loses thousands in value.

TESLA Example: The chart shows that a $60,000 Tesla car purchased today would lose value in 10 years to approximately $20,000, whereas investing $60,000 in Tesla stock will gain value in 10 years to roughly $155,000. That’s how you get ahead by buying the stock (you own a piece of the company), not the product.

Now imagine taking that same money and putting it into Apple, Nike, or Tesla stock. Instead of watching your purchase lose value, you’d actually own a piece of the company. As they grow, innovate, and capture more of the market, your investment grows right along with them.

It’s simple math. Products are designed to be used, consumed, and eventually replaced. That means they start losing value the moment they’re in your hands. Electronics become outdated, clothes fade or go out of style, cars rack up miles and repairs.

Stocks, on the other hand, represent ownership in a business. As long as the business continues to perform well, the stock has the potential to rise in value. Sure, there will be short-term dips, but history shows that strong companies tend to bounce back and climb higher.

Take cars, for instance. A brand-new vehicle typically loses 10–20% of its value the minute you leave the dealership. But if you had put that same money into Tesla stock during its earlier growth years, the story would have been very different—your dollars would have multiplied many times over.

From Consumer to Investor: A Mindset Shift

When you buy a product, you’re acting as a consumer—driven by marketing, trends, or simple desire. But when you invest in the stock of that company, you step into the role of an investor. Instead of giving your money away in exchange for a depreciating item, you’re giving it a chance to work for you.

Take Apple as an example. If you had invested in the company when the first iPhone launched in 2007, your money would have multiplied many times over by now. You wouldn’t just be a customer enjoying a product—you’d be a stakeholder sharing in the company’s success.

The Magic of Compounding

Here’s where things get really exciting: compounding. When you invest, you’re not just earning on your initial dollars—you’re earning returns on your returns. Over time, that snowball effect can create exponential growth.

APPLE Example: Let’s run some quick numbers. Say you invested $1,000 in Apple stock today, and it grew at an average of 10% annually. In 10 years, that $1,000 could grow to more than $2,500. Keep it invested for 20 years, and you’re looking at over $6,700. On the other hand, if you bought a $1,000 Apple iPhone, your investment 10 years later would be next to nothing.

Now, let’s compare that to the $1,000 iPhone. In just a year or two, it’s worth maybe a few hundred bucks at best—and eventually, nothing. That’s the power of shifting your dollars from consumption to ownership.