Myth 1: Blue-Chips Are Always Safe and Risk-Free
Here’s what investors tell themselves: “It’s a blue-chip. How risky could it be?” But the truth is, even giants stumble. Take Singtel (SGX: Z74). As competition intensified and 5G costs piled up, Singtel’s EBIT (earnings before interest and taxes) margin slipped from 32% a decade ago in FY2015 to 19% in FY2021, before clawing back some ground in recent years. And that’s with operating revenue that has not grown....Blue-chip stocks are supposed to be the “safe money.”
It’s the boring but reliable foundation of every sensible portfolio.
But here’s the problem:
Most investors treat blue-chips like they’re magical wealth-preservation machines that never break down.
That’s dangerous thinking, and it’s costing people money.
When you believe these myths, you either miss out on profitable opportunities or get blindsided by risks you never saw coming.
If you want to avoid those mistakes, you’ll want to be aware of these 3 myths about blue-chip stocks.
