Better Buy: McDonald's vs. Domino's Pizza

Every investor wants to buy winning stocks. Unfortunately, faulty reasoning often misguides our search.

Take for instance restaurant giants McDonald's (NYSE: MCD) and Domino's Pizza (NYSE: DPZ). McDonald's stock is about 7% lower than it was this time last year. By contrast, Domino's stock has gone up almost 60% during the same timespan. Given the choice, many investors would decide to buy McDonald's stock at a "discount" rather than "chase" Domino's stock at all-time highs.

This is looking for a value in the wrong places.

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Source Fool.com