Better Buy: Clorox Stock or the Entire S&P 500?

To say they're dishing out disparate performances is something of an understatement. The S&P 500 Index (SNPINDEX: ^GSPC) is up 38% over the past 52 weeks, while share prices of Clorox (NYSE: CLX) are down 14% for the same timeframe. Clorox is the S&P 500's third-worst performer for the year-long span. Assuming the recent past is a glimpse of the near future, the hint is crystal clear -- plug into the broad market and take a hard pass on the bleach maker.

This easy-to-embrace way of thinking, however, ignores an important investing adage from none other than Warren Buffett -- the Oracle of Omaha -- who says "be fearful when others are greedy, and greedy when others are fearful." Investors comparing a position in Clorox to an index fund right now would be wise to act on both tenets simultaneously.

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Source Fool.com