Foreign Blue-Chip Stocks: What Malaysian Investors Should Know
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Blue-chip stocks refer to shares of large, established, and high-performing companies. The term "blue-chip" comes from the game of poker, where each blue chip holds the highest value and is considered the most valuable.
These ''blue-chip'' stocks are often the preferred choice for investors seeking stable investments with good long-term return potential. In certain cases, blue-chip stocks are also used as a benchmark for evaluating the overall performance of the stock market.
The term blue-chip first appeared in the 1920s in the United States, where leading companies such as General Electric, Coca-Cola, and IBM were regarded as ''big company'' stocks. At the time, these stocks were considered stable and safe to invest in, becoming the preferred choice of institutional and individual investors looking for long-term investments.
Today, although many new companies have grown rapidly and succeeded, these stocks remain the preferred choice for investors seeking stable and safe investments. They also serve as a benchmark in stock market performance evaluation and are often the primary indicator for determining the overall condition of the stock market.
Generally speaking, these large-cap stocks are a good choice for investors looking for stable and safe long-term investments. However, every investment carries its own risks, and you need to conduct research and understand market conditions before making investment decisions in these stocks or any other type of stock.
Large companies typically have a strong long-term track record and are considered stable and safe stocks to invest in. They usually have stable revenue, consistent profits, and a good dividend record. Examples of well-known large companies include Apple, Microsoft, Coca-Cola, and Johnson & Johnson.
Blue-chip stocks have advantages over other stocks because they are more stable and less prone to large price fluctuations in the short term. This makes them attractive to investors seeking stable and safe long-term investments.
Additionally, these stocks are often traded on major stock exchanges and have high liquidity, allowing investors to buy and sell shares easily. This gives investors flexibility and enables them to make sound investment decisions in both the short and long term.
However, it is important to remember that blue-chip stocks do not always guarantee good investment returns. Although these companies are well-known and high-performing, they can still experience share price drops and loss of investment value. Therefore, you need to conduct research and understand the risks before making investment decisions in blue-chip stocks.
Blue-chip stocks refer to shares of large companies that are established, stable, and high-performing. They are popular because they offer price stability, consistent dividends, and lower risk compared to small-cap stocks.
Yes, Malaysian investors can invest in foreign blue-chip stocks such as Apple, Microsoft, and Amazon through legitimate global brokers like Mplus Global.
Foreign blue-chip stocks, such as those listed on the NYSE, typically have much larger market capitalisation, higher liquidity, and exposure to global markets compared to blue-chip stocks on Bursa Malaysia.
No. Although blue-chip stocks are more stable, they are still subject to market risks. Share prices can fall due to economic, political, or company performance factors. Investors should conduct thorough research before investing.
Foreign blue-chip stocks offer attractive investment opportunities with high stability and liquidity. However, every investment carries risks, and investors need to understand the market before making decisions.
Ready to invest? Open a CDS account for the Malaysian market and download the free investment basics ebook to build a solid investment foundation before taking your first step.