Market Extra: How a more balanced S&P 500 can lead to richer returns

The Sage of Omaha, Warren Buffett, famously recommended that his children put their inheritance into an S&P 500 index fund rather than invest in his Berkshire Hathaway enterprise. His thinking: It’s hard to beat the market.

Buffett is right, of course. Few fund managers are able to consistently outperform their equity benchmarks.

But investors need not despair. There are ways to beat the S&P 500 SPX, -0.50% though it requires higher risk tolerance and patience.

One method is by investing in the equal-weighted S&P 500, or EWI, which over the long term has significantly outperformed the S&P 500.

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