These investments will boost your net worth more than any growth stock

Long-term investors who are considering buying “growth stocks,” i.e., stocks with high price-earnings (P/E) ratios, may want to think again. The phrase “growth stocks” appears to be a misnomer. In general, differences in future earnings growth are fairly modest between high P/E and low P/E stocks and are far too small to justify the large differences in prices between those two sets of stocks. On average and over the long run, high P/E stocks deliver significantly lower returns than low P/E stocks.What do P ...