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Here's my totally anecdotal reply:
I've owned two dogs. The first was a mutt from the Anti-Cruelty Society in Chicago. He was about 9 months old, mostly Lab, with some other stuff mixed in. We didn't learn his back story or anything and he was essentially free. We loved him, but he was far too energetic for our living conditions (apartment) and while he was great with my wife and I, he was terrible when people came over, and certain people set him off (which is no doubt related to abuse with his previous owner). After about 2 years, we took him back.
Our current dog was bought from a breeder. He was an AKC pure bred Yorkshire Terrier who was 6 weeks old. The breeder was extremely informative and made sure that we were comfortable with the decision before the purchase. We saw the mother and the other puppies in the litter and had our pick. Now, 6 years later, we've had zero problems with him on either a behavioral or health level, so it was $600 well spent.
Again, this is just my experience.
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