Investing in an index fund that tracks the S&P 500 has proven to be a wonderful endeavor historically. For example, in just the past decade, the Vanguard S&P 500 ETF has climbed at an annualized pace of 12.9%, which includes dividends.

But some individual investors strive to outperform the broader index. To do this, it's critical to find companies that can put up strong investment returns. However, I think it's also important to ignore the ones that likely can't do this.

If your ultimate goal is to beat the S&P 500, you'll probably regret buying this top Warren Buffett stock.

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Source Fool.com