Anyone who’s ventured into investing has most likely heard of the term “Blue Chip Stocks”, but in the unlikely event that you haven’t, these refer to high quality stocks that are perfect for when investing for the long term and, sometimes, short term. These are essentially stocks of a large, well reputed company.
The term “Blue Chip” comes from the game known as Poker, where each chip color corresponds to a value, with blue being the most valuable. As mentioned, Blue Chip Stocks refer to the huge companies with excellent reputations, often including some of the biggest household names in the country.
Blue Chip stocks, in terms of performance, are seen as some of the less volatile in the market. This means that anybody can invest in blue-chip stocks and is often the go-to stocks for conservative investors and those who plan to invest for the long term.
Typically there are 30 of these Blue Chip Companies currently present in the Philippine stock market. The list below contains 10 companies based on good fundamentals, strong balance sheets, excellent management, great recurring income, and reputable status as of the time of writing.
Take note, however, that no matter how good a company may be, there are always risks involved when it comes to investing in stocks. So before you jump in make sure to do your research and carefully plan your investments. Read all about what you need to consider when investing during a pandemic here.