The Hazy Line Between Value and Growth

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In The Graduate, a young Dustin Hoffman, upon his college graduation, is taken aside by a family friend for career advice. The friend offers Dustin one word: "plastics." He encourages Hoffman's character to pursue a career in the explosive, up-and-coming plastics industry.

That advice applies to our children and their friends with graduation ceremonies.

Consider the same advice regarding our portfolios. If we have a longer-term window and can ignore short-term volatility, should we invest in a volatile growth stock like Nvidia or a stable low growth company like Clorox?

Investment pundits will rephrase the question as a choice between a value stock and a growth stock. The terms "value" and "growth" have been blurred. What appears to be a value stock may be in its reputation only.