What are blue-chip stocks? // The Motley Fool Australia
A blue-chip share is a company that’s considered the best of the best, like a casino’s most expensive (blue) chips.
Blue chips represent financial stability, long-term growth, a strong track record, and even prestige. In fact, all the positive characteristics of being among the market’s top companies for some time.
There are no hard and fast rules about what makes a blue chip blue. Here are some of the characteristics of blue chips, how they perform, and how you can invest in them.
How to identify blue-chip shares
They are the market’s biggest and brightest equities — the companies investors hold in the highest regard. Blue chips have usually demonstrated the following traits over many years:
- Financial strength: Low or modest…
