Skip to main content

Blue Chip

A high-quality, comparatively low-risk investment; the term typically refers to the stocks of sizable, well-known businesses that have delivered positive results over a protracted period of time. The phrase "Blue Chip" is taken from poker, where the most valued chips are blue.

Overview
Blue-chip stocks are from well-known, reliable companies, such as Nike, Coca-Cola, Boeing, Visa.
Blue chips have a significant market valuation, a major stock exchange listing, and a history of dependable growth and dividends.
Blue-chip stocks have an established track record of performance and consistent growth.
Blue chips are stable but don't earn as much profit as riskier investments.
Blue-chip stocks are not impervious to failure, just like what happened with Lehman Brothers or General Motors during the financial crisis.

Popular posts from this blog

Domino’s Misses on Profit But Serves Up Strong Sales and Market Share Gains

Baidu Earnings Show Advertising Slump, AI Cloud Offers Bright Spot

Palantir Faces Harsh Valuation Reality as AI Hype Meets Market Rotation