Growth investing relies on a simple premise: Find great companies that will outperform over the long haul, outgrowing their premium valuations over time. This, of course, is easier said than done. In the video below, Fool contributor Daniel Sparks discusses a great way to tell the gold from the fool's gold. To illustrate, he takes a look at Whole Foods Market (NASDAQ:WFM) and Panera Bread (NASDAQ:PNRA).

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Panera Bread and Whole Foods Market. The Motley Fool owns shares of Panera Bread and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.