Do you need to find the next big investment winner to succeed?
Some shares deliver huge returns in a relatively short period. Yet, finding the next big investment winner isn’t the most reliable way to succeed. Instead, spreading your investments could work in your favour.
When an investment soars, it can make for great headlines. Take technology company Nvidia, for example. According to The Motley Fool (24 July 2026), the company has averaged a 67% annualised return between 2023 and 2025. Indeed, it delivered investment returns of 240% in 2025.
The resulting headlines could make investors feel as though they only just missed out on picking the next big investment winner themselves. However, gains of this size make headlines precisely because they rarely happen.
Finding the share that will soar next is like searching for a needle in a haystack – there’s a very small chance you’ll get lucky, but even with plenty of time on your hands, you’re more likely to overlook it.
A different investment approach that makes sense for many investors is to invest in a broad range of opportunities. Rather than hunting for the needle, you buy the entire haystack.
Please note: The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Past performance is not a reliable indicator of future performance and should not be relied upon.
Funds could help you buy the haystack
An investment fund pools your money with that of other investors to invest in a range of assets that align with the fund’s goals and risk profile. So, rather than investing in a single company that might be successful, you invest in different asset classes, sectors, and regions.
Some funds, known as tracker funds, will invest in companies in a particular index, such as the FTSE 100 or S&P 500. As a result, you’ll own a small part of each company listed on the index.
Other funds are actively managed, and an investment manager makes decisions about how to invest.
Which type of fund is right for you will depend on your goals and circumstances. However, both types of funds offer a useful way for the average person to invest, as you won’t need to track market movements or make day-to-day decisions about your investments.
It is possible to invest in a broad range of opportunities yourself, but it’s typically time-consuming as a lot of research is likely to be required. Even once you’ve selected investments, the time spent monitoring market movements and adjusting where necessary can add up. You might also inadvertently take too much risk or select investments that aren’t right for you.
Why buying the haystack could lead to success
If you believe you’ve found the needle and invest all your money in that one opportunity, your investment returns are entirely dependent on the performance of one company. What happens if the company doesn’t perform as well as you’d hoped? It could derail your plans.
In contrast, when you invest in a broad range of assets, losses in one area may be offset by gains in another.
The value of your investments will still rise and fall. This is part of investing. However, you may be less likely to experience sharp peaks and troughs or lose all of your investment.
Historically, investment markets have delivered returns over a long-term time frame. Buying the haystack with a long-term goal in mind and holding on to it could make sense for many investors.
With this approach, you don’t need to find the needle to succeed, but rather you need patience.
Keep in mind that investment returns cannot be guaranteed. All investments carry risk, and it’s important to assess what’s appropriate for you.
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Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Past performance is not a reliable indicator of future performance and should not be relied upon.
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