It’s a “Blue Chip”—Relationship Investing (37)

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I’m not sure what the term blue chip means anymore. To me it’s a remnant of markets past—not the present or the future. Years ago when I fell in love with this business, a “blue chip” stock was a major-name corporation, often with a world-renowned product, an admired corporate giant carrying a high financial rating and often paying an increasing dividend. It would usually boast an impressive streak of financial results and be a suggested core holding in many portfolios for individuals and institutions alike. I can still remember this term being thrown around the brokerage houses I frequented, with those owning shares in names so labeled a point of portfolio pride. But that’s all it is—a label.