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Blue Chips

Blue chip stocks are those of companies who are global in most cases, are recognized leaders in their industries, and have fairly diversified operations and company businesses. At the end, IBM, Chevron, GE Capital, are all examples of blue chip stocks. An investor by the name of Warren Buffett, bases his entire investment philosophy on nothing but blue chip stocks, and adheres to the idea that purchasing blue chip stocks will almost always result in significant returns over long periods of time. Buffett, as well as other investors reasons include, the safety of large companies their insulation from various downturns, and the fact that some of their businesses provide certain levels of growth potential, even while other parts of their businesses may be fairly static in nature.

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