Core Insights - Growth stocks are favored for their higher-than-average growth potential, but they can also experience significant declines [1][2] - Value stocks may be preferred during market downturns due to their limited downside and upside potential [2] - Long-term investment in growth stocks can yield positive results despite potential short-term pullbacks [2] Company Summaries - **Shopify (NASDAQ: SHOP)**: - Shopify has averaged annual gains of nearly 50% over the past decade and 49% year to date [4] - The company reported 32% revenue growth in its third quarter and maintains an 18% free-cash-flow margin, marking nine consecutive quarters of double-digit free-cash-flow margin [6] - Shopify's gross merchandise volume reached $87 billion, closely approaching Amazon's $107 billion [6] - The stock's forward-looking price-to-earnings (P/E) ratio is 85, below its five-year average of 98 [6] - **Taiwan Semiconductor Manufacturing (NYSE: TSM)**: - Taiwan Semiconductor is a leading semiconductor foundry, manufacturing chips rather than just designing them [9] - The company holds a significant market share of 71%, an increase from 65% the previous year [9]