Blue chip stocks is not a game
Posted by HanaDaddy | Posted in Investment Tips and Ideas | Posted on 09/18/2009
Tags: blue chips, stocks
0
Investing in conservative blue chip stocks may not have the charm of a hot high-tech investment, but can be very rewarding, however, as good quality stocks have outperformed other investment classes over the long term.
Historically, investment in shares has generated a return, over time, between 11 and 15 per cent a year depending on how aggressive you are. Stocks overcome other investments since they incur more risk. Stock investors are at the bottom of the corporate “food chain”. First, firms must pay their employees and suppliers. Then they pay their obligations. After it is preferred shareholders. Companies are required to pay all the actors first, and if there was the money paid to shareholders through dividends or undistributed. Sometimes there’s a lot of money left for shareholders and in other cases there is not. Thus, investment in shares is risky, because investors do not know exactly what they are to receive for their investment.