Few stocks consistently outperform the vaunted S&P 500 index due to its inherent advantages in diversification and stability. This benchmark index draws its strength from a broad portfolio of America's top companies, allowing it to weather individual sector downturns and capitalize on various market trends simultaneously.

Individual stocks, in contrast, are subject to company-specific risks and industry cycles. Even well-managed companies can face periods of underperformance due to factors such as changing consumer preferences, technological disruptions, or economic shifts that disproportionately affect their sectors.

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Source Fool.com