‘Blue Chip’ is a common term in finance to describe a high-quality, low risk investment, usually referring to a well-established company or company stock that has performed well over time. Typical blue chip stocks have a proven history of solid earnings, regular dividends, and strong balance sheet. A few examples are JP Morgan, Coca-Cola, Johnson and Johnson, and Berkshire Hathaway. The term ‘Blue Chip’ is borrowed from Poker, where blue chips are the most valuable.
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