What You Should Know About Blue-Chip Companies

Anybody can invest in blue-chip companies. Since they are Public companies, they are open to all. Conservative investors seem to be more interested in reliability, capital security, and cash flow in the form of dividends, and unsurprisingly, Blue-chip stocks offer all of these. For investors with more risk tolerance, we advise you to add some small-cap stocks to your portfolio.

For example, Apple Is a $2 trillion company with a current share price of $129 at the time of writing. That means before you make a 100% return, you will need apple to be a $4trillon company. Impossible? No. Likely? Maybe. Soon? No.

Amazon, on the other hand, is a $1.7Trillion company. Before your $100 investment becomes $200, Amazon would need to be worth $3.4 Trillion. Likely? Yes. Soon? No.

That’s why they both are blue chip companies. They stand for stability much more than for growth.

Most big-league companies started as small-cap or medium-cap companies. By buying small-cap companies with good fundamentals, you would enjoy some level of growth, and in the coming years, you might just have bought the next blue-chip company.