What are blue chip stocks, and why do investors prize these so highly? Also called blue chips these are extremely desired securities that have performed well over many years, and they also have top brand name recognition. Coca Cola, Lockheed Martin, Johnson & Johnson, Apple, and many other companies are considered the cream of the crop. These options generally carry fewer risks and offer long term security.
Many of the picks in this category offer dividends, and they are typically large organizations and Fortune 500 businesses that have a proven record and that have shown consistent success. These features are the reasons why they are so sought out in the first place. Since there is less risk involved and the brands are globally recognized most individuals prefer these choices.
There are numerous research factors to consider no matter how the securities are classified, but blue chips have a wealth of available information about the company, performance, and history. This makes researching much simpler and less time intensive. Another popular reason that these are typically preferred is because they tend to do well no matter what type of market conditions are present.
Most of the richest individuals in the investment world hold these types of securities, and often in large numbers of shares. They are the top choices, and are used as a cornerstone for preserving capital and building wealth at the same time. Any portfolio that contains one or more of these vehicles will be ahead of the curve.
Successful choices in securities and equities often include blue chip stocks and bonds. The history behind each offering is extensive and the profitability of the pick has been shown in the past. Lower risks usually translates into higher returns and fewer losses, and that is the main goal for most individuals. Stability and security are crucial in most cases, and these vehicles can deliver on this.