What are Blue Chip Stocks?
DeFine Glossary #6
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Defined: Blue Chip Stocks
These are stocks of large companies, typically household brands, that have earned the trust of their investors by consistently delivering on expectations.
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Some examples are stocks like HUL, Nestle, Maruti, Reliance etc.
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Expectations mean transparency, doing the right thing for their investors, and walking the talk.
(Expectation here doesn't necessarily mean high growth)
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It is difficult to spot an outstanding stock.
Unless you can predict the future, that is 🕰
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What's a good alternative?
Turn to well-established industry bigwigs.
Stocks of such household brands, known for their consistent track record, are called blue chips.
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