Yes, an no.

It is possible to have text in one document reflected in another document. One way to do this is to bookmark the text in document1 and then insert that text using an IncludeText field in document2. You would want something to update that field in document2 upon opening. A macro can do this.

Another method would be to take the text from document1 that you want in document2 and copy it. Then paste it in document2 as a link. This is under paste special.

With the paste as link, Word will automatically query whether you want to update the link when you open document2. If, while in document2, you attempt to change the linked text, you are taken directly to document1 to make the link.