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?
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