What are blue chip stocks and how to invest in them?


In the financial markets There are different types of assets in which it is possible to invest. To mention we have currencies, commodities (or raw materials), debt, derivatives, stocks and cryptocurrencies. In them there are internal classifications that adjust to different profiles.

In the case of shares, which with the debt make up the investments more traditional, there are several types to choose from. Some are more suitable than others for investors, depending on the risk they allow themselves. For those who want security or low risk, signatures stand out. blue chips.

According to BBVA, the blue chips can be defined as those societies with stable stock values and have a high level of liquidity. These are investments that represent the main companies in the market, a factor that provides them with less risk, in addition to low volatility.

blue chips it comes from the blue chips of the casinos, which in the games represent the maximum values. These firms tend to outperform others in difficult times for markets, such as in economical crisisand in the long term they present better evolutions in their results.

Another positive feature of these companies is that, thanks to the fact that their numbers are stable and grow steadily and predictably, they do not require (at least not the most common) capital increases that could dilute the share price. This benefits long-term investors.

All sources of information attribute the term to Oliver Gingoldwho was a worker of the Dow-Jones & Company. Gingold would have used this metaphor for the first time in the 1920s after observing progressive buying for high prices in a future Merrill Lynch.

There is no established consensus on which companies can be considered blue chips. Some say that among them are the most famous companies, whose shares fluctuate little and their profits are more homogeneous. Its characteristics arouse a rejection in more aggressive investors.

However, the special feature of blue chips: high liquidity, gives opportunity to buy and sell them easily. The most conservative see its liquidity and stability as attractive for building long-term investment portfolios, mainly with a wealth idea.

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