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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

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Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
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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