What is the most profitable investment starting from 100,000? The wealth secrets every small investor must know

The end of the year is approaching, and I believe everyone has felt the pressure of living costs. Egg prices are rising, mortgage interest rates are increasing, and daily expenses are soaring. Behind these seemingly small numbers lies a harsh reality—not investing is equivalent to losing money. Taking mortgages as an example, the rate has soared from 1.31% during the pandemic to 2.2% now, meaning a million-dollar mortgage costs nearly 90,000 more in interest each year. In such an environment, knowing what to invest in to maximize profits has become an essential lesson for every small investor.

Viewing Investment Through the Triangle of Mindset, Projects, and Time

Many people overcomplicate investing, but the core logic boils down to three elements: clear thinking, suitable projects, and ample time.

The first step is to learn how to keep accounts. Treat yourself as a company, understand your income and expenses, and accurately calculate the “idle money” available for investment. The key characteristic of this money is—even if the investment drops in value, it won’t affect your daily life. Many lose because they are forced to sell at a loss, especially when they urgently need cash during a price decline. Long-term, this is highly detrimental to wealth accumulation.

The second step is to find investments that serve your expenses. Your investment goals should be linked to your actual living needs. For example, if you pay for communication services monthly, you can choose dividend-focused funds or high-yield ETFs; if you want to travel or upgrade your phone, aim for a 30-40% return. With clear motivation, persistence becomes less of a burden.

Three Investment Paths for Small Investors

Stable Employees—Dividend funds or high-yield ETFs are your best partners. These individuals have stable but slow-growing income. Generating steady cash flow from investments similar to their salary greatly enhances execution. Over the long term, dividends can even surpass salary, effectively adding an invisible retirement fund.

High-Income Professionals (such as doctors, engineers)—should look toward index ETFs or real estate. The US stock ETF SPY tracks the S&P 500, with a 116% return over the past 10 years, far exceeding the 5% fixed deposit rate. Even better, indices automatically weed out weaker stocks and keep the strong ones, so you don’t need to pick individual stocks. Combining moderate leverage in real estate can boost returns to 50% even if property prices only rise 20%.

Time-Rich Individuals (students, salespeople)—can try short-term speculative operations. Spend time gathering data, then rely on turnover rather than waiting to generate profits. For example, with the Federal Reserve’s interest rate hike cycle nearing its peak and expectations of future rate cuts, shorting the dollar has a high win rate; a weaker dollar often stimulates cryptocurrency prices. Additionally, staying on top of current hot topics—such as government policy benefits or AI stock hype—can help capture major capital flows in the short term.

Real Returns of Five Major Investment Products

Gold (XAU/USD)
Value increased by 53% over the past 10 years, with an average annual return of 4.4%. Gold itself does not pay dividends; profits come purely from price differences. Major price surges occurred during 2019–2020 (pandemic + rate cuts) and 2023–2024 (geopolitical risks). Its core value lies in hedging against inflation and currency depreciation—an insurance policy during economic turmoil.

Bitcoin (BTC)
This is the most volatile investment. Over the past 10 years, it has surged over 170 times, but the reasons for rises and falls vary greatly—exchange risks, geopolitical factors, dollar substitution effects… Each wave of market movement tells a new story. Currently, BTC is priced at $87.43K, with short-term bullish factors including halving effects, spot ETF listings, and political cycle changes. But for long-term, it’s advisable to buy at lows and reduce holdings at highs, avoiding letting a single asset dominate your portfolio.

Taiwan High-Yield ETF (0056)
The most well-known dividend ETF. Over the past 10 years, it has paid out 60% in dividends and its stock price has risen 40%. Future returns are expected to stay at similar levels. Investing 100,000 yuan yields about 6,000 yuan in dividends annually—seemingly modest, but if you continue investing 100,000 each year, after 13 years, annual dividends could reach 100,000; after 25 years, 220,000, enough to supplement retirement.

US Stock Index ETF (SPY)
Tracks the US 500 companies. Over the past 10 years, it rose from $201 to $434, with a 116% return. The dividend yield is only 1.6% (about 1.1% after tax), but the power of compound interest is astonishing—invest 100,000 yuan, and after 30 years, it could grow to 1 million. Warren Buffett’s logic is simple: as long as the dollar remains the global settlement currency, the US will not go bankrupt, and assets will continue to appreciate. The downside is minimal cash flow along the way, which tests investors’ patience.

Berkshire Hathaway (BRKB.US)
The enterprise empire of the stock legend, with a highly replicable profit model. It accumulates cash through insurance, then uses low-interest loans for arbitrage—such as raising funds in Japan at 0.5% interest to buy Japanese stocks, whose dividends far exceed borrowing costs. This logic won’t change with Buffett’s aging; as long as the management strategy remains, the ability to continue arbitrage will always exist.

The Reality of Wealth for Small Investors

Many struggle over what to invest in to maximize profits but overlook a core fact: choice is more important than effort. No single investment method suits everyone; the most effective approach must match your own conditions.

Time is the best friend of compound interest. 100,000 yuan may seem insignificant, but if placed in the right assets with enough patience, it can multiply hundreds of times over 30 years. The key isn’t the principal size but whether you have the right mindset, find suitable projects, and are willing to give time room to grow.

Financial freedom is not far for small investors—just having these three elements in place, and becoming a small millionaire is only a matter of time.