Investing in stocks – Go buy Best Blue Chip Stocks

As a person investing in stocks, a person needs to diversify his portfolio. He should have a mix of different types of investments from low risk bonds to high risk stocks. Another type of security which should be present in any portfolio is something called blue chip stock.

What is a Blue Chip Company?

A blue chip company is a term given to a nationally recognized, financially sound and well established company. These companies are generally well respected companies within their sectors and are know for best quality products and services available in the market. Blue chip companies are generally known to ride the wave of economic downturns in a much better way than small caps and mid cap companies. In the longer term, these companies provide decent growth in a steady fashion.

The term ‘blue chip’ comes from the game of poker where the blue chip has the maximum value. Blue chip companies usually follow the S&P 500 index. These companies are less volatile than other types of stocks.

When faced with crisis and uncertainty in the economy and the broader market it is imperative to remember that throughout history, high-quality, blue chip stocks have rewarded patient investors. Those who dared to buy the blue chip stocks during the worst period of recession would be the investors who will gain the most. The long-term building of capital and a growing stream of income from that capital also requires some counter-intuitive investment decisions, such as buying at times of extreme pessimism or selling at times of extreme euphoria.

What are the best blue chips stacks in today’s economy?

After a deep recession, finally the markets are rallying again and analysts see signs of economic recovery. In this scenario let us take a look at a few companies from blue chip department which have the potential to get good returns.

BM (NYSE: IBM)

Altria Group (NYSE: MO)

Johnson & Johnson (NYSE: JNJ)

United Technologies (NYSE: UTX)

Coca Cola (NYSE: KO)

Union Pacific (NYSE: UNP)

Emerson Electric (NYSE: EMR)

Colgate Palmolive (NYSE: CL)

Abbott Labs (NYSE: ABT)

Molson Coors (NYSE: TAP)

AT&T (T)

Warren Buffet’s Berkshire Hathaway (BRK)

Comcast Corporation (CMCSA)

Exxon Mobil Corporation (XOM)

Microsoft Corporation (MFST)

Nestle (MSRGY)

Novartis Ag Basel (NVS)

Pepsi Co. (PEP)

The investor should always be looking for buying some of these best blue chip socks since these are the best long term investments in stocks. These companies are financially stable and provide steady returns over the period of time. The investor can never fail if he uses the buy and hold strategy while investing in stocks of blue chip companies.

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