Saturday, 25 May, 2013

Stick to Blue Chips


Stick to Blue Chips


If there's one thing that I've learned over the years of investing in shares, it is something quite basic and simple:


Stick to Blue Chips. And keep reviewing them regularly to ensure that they continue to be blue chips!

If, in the hope of grabbing that elusive multibagger, you get tempted to invest your money in an unknown company (often a penny stock), be rest assured that you're likely to be stuck with it for a long period of time. And, at the end of it, you'll be lucky if you can get your capital back.

I had learned this lesson over the years through personal experience as well as through hearsay from experts.

I recently came across another interesting proof that re-affirmed my faith in blue chips:



While every word in the above article is quite valid, the moral of the story for me has to be:


Regards,

N

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