Blue Chip Stocks

Blue chip companies are typically large-cap, industry-leading businesses with decades of operating history and consistent financial performance - the term borrowed from poker, where blue chips carry the highest value. They're generally viewed as more stable than smaller, newer companies, though "more stable" doesn't mean risk-free - blue chips can and do fall significantly during broad market downturns. They're often the anchor holdings in large-cap mutual funds and a common starting point for investors newer to direct stock investing, given their relatively lower (though not zero) volatility.