When invest in stock market, why are people so hard up over blue chips?
That day I discussion stock market with friend, they say they only look at blue chip. No blue chip no talk. even my finance trained friend also say he look at blue chip first. I hear him say this buei ta han dunno what he thinking.
I was thinking, whether blue chip, S chip, red chip, potato chip dont matter. The idea of buying a blue chip for stability sounds nice, but if you think carefully, they are usually expensive. When stock market crash, everything also go down, Be it blue chip, S chip, red chip, potato chip.
Why not buy a good underdog small cap company which performs like a blue chip? This way you get a quality company without paying the high premiums of blue chip? Isnt that a better idea? Without paying a premium, your ROI is better, your potential for gains is better too.
This really a stupid mentality to be hard up over blue chips.
So really,
why are people so hard up over blue chip when they invest?
no offense to blue chip lovers, just trying to have healthy debate so everyone become wiser.
