to text or not to text

The docs say that the text type is the "Best choice" of the character data
types.  It was always my understanding that the text type was stored else-
where in the database and a pointer to it was stored in the actual table.
Does PostgreSQL do this or is a more efficient way been found?  It seems
that it'd be too expensive to store it elsewhere.   I'm making some changes
to a table and wanted to optomize it (varchar vs text).

Vince.
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