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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

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As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
FinanceFortune 500

One Deceptively Simple Way to Beat the Market

By
Anne VanderMey
Anne VanderMey
and
Scott DeCarlo
Scott DeCarlo
Down Arrow Button Icon
By
Anne VanderMey
Anne VanderMey
and
Scott DeCarlo
Scott DeCarlo
Down Arrow Button Icon
June 13, 2017, 1:00 PM ET
Charts compares Fortune 500 companies cumulative returns versus the S&P 500
Charts compares Fortune 500 companies cumulative returns versus the S&P 500Nicolas Rapp

Let’s say in the year 2000, you bought $2 worth of stock of every company on the Fortune 500, for a total expenditure of $1,000.

Then, the year after, you sold it all and reinvested your gains, again buying an equal amount of every stock on that year’s list—and you repeated that process annually for 17 years.

The result would be that today you would have more than quintupled your money. That’s a return that’s all the more remarkable considering that the market as a whole only doubled during the same period. Your Fortune 500 portfolio would have lapped the S&P, earning 481%.

The takeaway? For better or worse, in today’s winner-take-all economy, you can do pretty well by betting on winners.

A version of this article appears in the June 15, 2017 issue of Fortune with the headline “If You Bet on the Fortune 500, You Beat the Market.”

About the Authors
By Anne VanderMey
See full bioRight Arrow Button Icon
Scott DeCarlo
By Scott DeCarloVP of Research
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Scott DeCarlo is the VP of research at Fortune, where he oversees the publication’s signature lists, including the Fortune 500, Global 500, World’s Most Admired Companies, and Fastest-Growing Companies.

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