Apple or McDonald's?

In January 1993, I decided to invest $2,000 in McDonald's because I felt it would feed the world, eventually. But I then talked myself out of it and went with Apple because a friend recommended it and I'd just bought an Apple computer. The day I bought Apple was the last day it was ever that high! It immediately started falling, and I bailed out with an 82 percent loss. Meanwhile, McDonald's is feeding the world.

— Lori Grossman, St. Louis

The Fool Responds: Lori, you shared this story with us in 1999. You may be surprised by what has happened with the companies: Between January 1993 and now, McDonald's stock has averaged 12 percent annual growth, while Apple has averaged 14 percent. Both are solid market beating performances, as the S&P 500 averaged just 7 percent in that period. The lesson here is to focus on the long term. You soon regretted buying Apple, but had anything changed about your expectations of the company's growth? Choose companies whose futures you believe in, after researching them and their numbers.

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