Growth Companies Vs. Dividends, Risk And Younger Investors

For younger investors the discussion of risk comes up a lot. We own a very unique and irreplaceable advantage but one that erodes steadily - time. Whether its a horrible nuclear spill or a poor investment, time eventually erases the evidence that either happened. This leads many to feel that younger investors must assume more risk in order to really maximize their gains.
I recently published an article on purchasing Realty Income (NYSE: O) at record highs and outlined my thought process on that. My decision to buy was preceded by a myriad of internal struggles on my own appetite for risk. The discussion in the comments was great, but one comment in particular stood out and is a great start to the conversation here.
Some portfolio managers say a good stock is always a good stock, regardless of the valuation. However, given your long investment period, you could’ve used time in your favor and risked more. Just to understand better, why not invest in growth stocks, as opposed to an overvalued, lower yielding reit stock?
That comment couldn't have been more timely. I like it more for what it says between the lines. Steering an investor away from a stable dividend paying company because it appears overvalued toward a sector of investments (growth stocks) with more inherent risk is interesting to me. First I had to decide what I would view as a "growth stock."
Growth stocks mean different things to different people. I consulted Google (Nasdaq: GOOG)... Read more