As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Saturday, 13 February 2010

Highly Leveraged Blue Chips - Avoiding Them Like Plague?

There are good reasons why these companies are classified as blue chips while many other companies can't even smell it or worse some become blue-black chips.

Do you really need to avoid these highly leveraged blue chips like plague?

In 2009, the top five best performing STI component stocks are as follows:

1) Noble Group, +218.6%
2) Genting Singapore, +201.9%
3) Jardine C&C, +184.2%
4) Golden Agri, + 145.7%
5) Olam Intl, +131.3%

Noble and Olam are highly leveraged companies but they have Giants supporting them. If you are avoiding them like plague, you are missing the opportunity in making the most dollars in the least time.
 
Yes, they are risky companies so don't get greedy and over-weight them in your portfolio and get killed if things go wrong.
 
You have to be extremely careful and under-weight them in your portfolio to be conservative and safe.
 
But, do you really need to avoid these highly leveraged blue chips with Giants supporting them like plague?

Does A Highly Leveraged Man Risky To Marry?

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