"Beating Index Funds: The Key Metric for Superior Stock Picks"
Originally Published 1 year ago — by MarketWatch
Long-term investors have benefited from index funds, but some prefer individual stock selection. A company's return on invested capital (ROIC) can indicate strong long-term performance. A 20-year screen of the S&P 500 revealed 20 companies with the highest average ROIC, including VeriSign, Accenture, and Apple. These companies have outperformed the S&P 500 over 20 years, with Apple showing the best returns. VeriSign stands out with the highest ROIC in the S&P 500 due to its exclusive rights for domain registrations.