Why Should You Invest in Blue Chip Stocks?
There are countless great companies, but not all have the esteemed designation as blue chip stocks. There are no universally accepted criteria for what qualifies as a blue chip. However, it's generally accepted that blue chip stocks are well-established, industry-leading companies, that they have cash-filled balance sheets, and that they have stood the test of time, providing great long-term shareholder value.
Think about companies like Coca-Cola, Procter & Gamble, and Starbucks. You could argue that Coca-Cola's flagship soda is the world's most recognizable brand, that you can't visit any market of any size in a slew of countries without seeing P&G's products on the shelves, and that Starbucks now has more stores in the U.S. than McDonald's (which also qualifies as a blue chip). Their presence and impact are undeniable.
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Source Fool.com