Have you ever heard these sentences before?
“Blue chips are pretty safe investments…”
OR
“Just buy blue chips lah, cant go wrong!”
These are sentences I have heard often, and you likely have too. However, in any investment, it is dangerous for investors to have such mindsets.
The usual intention of investors to focus only into blue-chips is strong because most of us associate them as large, financially strong companies with stable business models. They are also characterized by strong cash-flow and reliable profitability.
Unfortunately, many of you would have to agree that Singapore blue chip stocks are nowhere compared to those of the U.S. big players like Facebook, Amazon, Alphabet etc.
In fact, many of our ‘impossible to fall’ stocks have crashed or exited the markets i.e. Noble Group, NOL, Golden-Agri, Hyflux etc.
Hence, in this article, we would like to bust the idea of why Blue
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