Investing isn't easy. Even Warren Buffett counsels that most investors should invest in a low-cost index, like the S&P 500. That way, "you'll be buying into a wonderful industry, which in effect is all of American industry," he says.

But there are, of course, companies whose long-term fortunes differ substantially from the index. In this series, we look at how individual stocks have performed against the broad S&P 500. 

Step on up, Carnival (NYSE: CCL).      

Carnival shares have easily outperformed the S&P 500 over the last quarter-century:

Ccl                                                 
 

Source: S&P Capital IQ.

Since 1987, shares have returned an average of 11.3% a year, compared with 9.7% a year for the S&P (both include dividends). That difference adds up fast. One thousand dollars invested in the S&P in 1987 would be worth $19,200 today. In Carnival, it'd be worth $30,400.

 Dividends accounted for a lot of those gains. Compounded since 1987, dividends have made up about 42% of Carnival's total returns. For the S&P, dividends account for 39% of total returns. For the S&P, dividends account for 39% of total returns.

Now have a look at how Carnival earnings compare with S&P 500 earnings:
Ccl

Source: S&P Capital IQ.

Decent outperformance here, too. Since 1995, Carnival earnings per share have increased by an average of 7.4% a year, compared with 6% a year for the broader index. 

What's that meant for valuations? Carnival has traded for an average of 29 times earnings since 1987 -- above the 24 times earnings of the broader S&P 500.

Through it all, shares have been strong performers over the last quarter-century.  

Of course, the important question is whether that will continue. That's where you come in. Our CAPS community currently ranks Carnival with a two-star rating (out of five). Care to disagree? Leave your thoughts in the comment section below, or add Carnival to My Watchlist.