| If you are like most investors, you are in search | | | | secure a blue chip stock is, you must always |
| of the holy grail of investing: a stock with limitless | | | | remember that at any time, the stock could end |
| potential and almost no risk. The truth is that | | | | up going belly up. |
| these types of stocks don't really exist. Every | | | | Even energy stocks, long considered the most |
| investment you make with your money carries a | | | | stable of all, aren't immune to rapid price changes. |
| degree of risk, but there are certain investments | | | | During the Exxon Valdez oil spill, prices in Exxon |
| that have the least amount of risk out there. It is | | | | stock tanked and millions of investors lost billions |
| important to note, however, that it is almost | | | | of dollars. Of course, now, Exxon and many other |
| always the case that the investments with the | | | | oil companies are considered just about the |
| least amount of risk also carry the least amount | | | | safest investment you can make. The same |
| of potential profit. With that said, blue chip stocks | | | | cycle happened for one time stock market darling |
| are often the most stable and most reliable | | | | Enron, which went from the penthouse to the |
| stocks on the market. | | | | dog house so quickly that it caught the entire |
| What is a blue chip stock? A blue chip stock is a | | | | industry off guard. |
| stock that has a demonstrated history of earning | | | | The secret to staying on top of what companies |
| money and avoiding rapid changes in value over a | | | | are solid blue chip investments is simply staying |
| long period of time. Often, blue chip stocks belong | | | | current on the world of finance. This is why it is |
| to long established companies like IBM, Microsoft | | | | so important to learn what you can about |
| and General Motors: companies that are relatively | | | | investing, even if you have a stock broker looking |
| stable and are likely to show a modest profit at | | | | out for your best interests. It is possible that your |
| the end of next year. Over the past few years, | | | | broker has hundreds of clients to look out for and |
| many energy and oil companies have become | | | | by the time he or she can call you and let you |
| respected blue chip stocks since they present the | | | | know that one of your secure investments are |
| opportunity for investors to turn a tidy profit with | | | | tanking, it could be too late. No matter how |
| a smaller risk than most stocks have. | | | | comprehensive your broker is, it is up to you to |
| No matter how long a company has been | | | | stay on top of your investments to avoid any |
| considered blue chip, there is always the chance | | | | possible collapse that might happen, even if you |
| that things could end badly. For instance, General | | | | invest solely in blue chip stocks. |
| Motors and Ford, long time blue chip stock | | | | As you can see, it is possible to beat the world of |
| companies have been hemorrhaging money over | | | | investing at its own game, but it isn't easy, and it |
| the past few years and their stock prices have | | | | takes a degree of dedication that many people |
| tumbled. The same can be said for many major | | | | aren't willing to put forth. If you are looking at a |
| airlines like Delta, which was once considered a | | | | way to maximize your profits and minimize your |
| rock solid blue chip stock and is now considered a | | | | risk, follow these steps, and you will be well on |
| very risky investment due to the cost of fuel and | | | | your way. |
| many other reasons. No matter how stable or | | | | |