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10 S&P 500 Stocks to Buy for Long-Term Outperformance

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Do you own Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) or Netflix (NFLX)?

Congratulations if you do, because these members of the Standard & Poor’s 500-stock index are up anywhere between 26% and 79% so far this year – and in the case of Netflix, its nearly 80% gains have come despite a 17% slide in July due to lower-than-expected subscriber growth.

With four months left in the year, you’re sitting pretty. Passive investors? Not so much. The problem is, as of mid-July, the four aforementioned S&P 500 stocks (according to research by S&P Dow Jones Indices) accounted for half the return of the index. At the time of the research, the index had gained about 6%, which means those four stocks accounted for 3 percentage points, and 496 companies accounted for the other 3.


It’s troubling that so few stocks are accounting for the lion’s share of the returns, but the message right now is clear: It’s a “stock picker’s market.” Thus, while every investor probably should have at least some money invested in an index fund, right now, those same investors should consider piling into a few individual S&P 500 stocks.

Here are 10 of the index’s best options not just for the rest of 2018, but for several years beyond that.

SEE ALSO: 53 Best Dividend Stocks for 2018 and Beyond

Data is as of Sept. 5, 2018.


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