Why You Should Invest On Blue Chip Companies

Things You Should Know About Blue Chip Companies

What Are Blue Chip Companies?

Blue chip companies are what they call companies in the stock market that have proven track record, companies that are able to perform well even on bad times and companies that are well-known in the national economy.

So, why do they call these companies “blue chip”, some say that it was derived from the game poker. You can’t play poker without bets and in casinos, you use chips to bet and these chips have different values on them.

Let’s say you have white, red and blue chips, white chips are worth a dollar or a hundred pesos for my fellow country men (in the Philippines), the red ones are worth $10 or 500 pesos, while the blue chips are worth $20 or a thousand pesos. As you can see, blue chips are considered the high-value chips. To summarize it all, blue chips companies are those having high-valued shares in the stock market.

Reasons Why You Should Invest On Blue Chip Companies
  1. Blue Chip Companies Are Proven

    As said above, blue chip companies have been tested for years and they are still performing well despite those obstacles (e.g. recession) that they have encountered. Blue chip companies are known to have great performances over the years, some can even do this for decades.

  2. Blue Chip Companies Are Loved

    Companies that are considered “blue chip” are loved by the people no matter what happens, even on bad times, because people have been used to to their products and services, and it became part of their daily lives. That’s one of the reasons why blue chip companies are able to perform well over the years while others do not. Look around you, and I bet that those considered blue chip companies are well-known wherever you go in your country.

  3. Blue Chip Companies Are Great Investments

    When I say great investment, I don’t mean that you should put all your money on blue chip companies. What I mean is to include some blue chip companies in your portfolio. These companies are known to give good return when you invest on them for the long term and not short term. If you want to earn money in a short period of time, then do not invest on blue chip companies.

Benefits Of Owning Blue Chip Companies’ Shares
  • Companies’ products and /or services are well-known all over the country or even worldwide
  • Some blue chip companies are known to give dividends to its shareholders more often than non-blue chip companies
  • History shows that these companies can perform well even on bad times
  • You don’t have to worry too much because you are somewhat assured that your money will not be gone instantly
  • Earnings are good, if you are investing for the long term

List Of Some Blue Chip Companies In The Philippine Stock Exchange (PSE)

Company Name and Symbol

Industry

Year Listed On PSE

ABS CBN Corporation (ABS)

Media

1992

Ayala Corporation (AC)

Holding Firms

1976

Ayala Land, Inc. (ALI)

Property

1991

BDO Unibank, Inc. (BDO)

Banking

2002

Bank Of Philippine Islands (BPI)

Banking

1971

Globe Telecom, Inc. (GLO)

Telecommunications

1975

Ginebra San Miguel, Inc. (GSMI)

Food and Beverage

1995

Jollibee Foods Corporation (JOL)

Food and Beverage

1993

Manila Electric Company (MER)

Energy

1992

Megaworld Corporation (MEG)

Property

1994

Petron Corporation (PCOR)

Energy

1994

Philex Mining Corporation (PX)

Mining

1956

Philippine Long Distance Telephone Company (TEL)

Telecommunications

1953

San Miguel Corporation (SMC)

Food and beverage

1948

SM Development Corporation (SMDC)

Property

1975

SM Prime Holdings, Inc. (SMPH)

Property

1994

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About the author

Mark Ross Canaoay

Hello! My name is Mark and I'm the one responsible for this website. I'm just a person with enough knowledge about finance-related stuffs. You can know more about me by liking my Facebook Page, following me on Twitter or by adding me in one of your circles on Google+.

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