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26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

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MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly

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After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history
FinanceFortune 500

One Deceptively Simple Way to Beat the Market

By
Anne VanderMey
Anne VanderMey
and
Scott DeCarlo
Scott DeCarlo
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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
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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
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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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