Blue-Chip Stock
A blue chip is a large, established company with a long record of stable performance.
Blue-chip stocks are the household names of an economy: very large market capitalisations, durable business models, and typically a history of paying dividends. Most constituents of the S&P 500's upper ranks and the FTSE 100 are considered blue chips.
The label is informal — there is no official list — but blue chips are generally viewed as lower-risk equity holdings, prized for stability and income rather than rapid growth.
Further Reading
Burton Malkiel's evidence-based guide to markets, indexing and long-term strategy.
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Check Price →Morgan Housel's short lessons on behaviour, luck and long-term wealth.
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Recommended Reading & Tools
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Philip Fisher on identifying durable, high-quality companies.
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