Blue Chip Poker
How to Count Poker Chips
ОбзорBlue chip companies have built a reputable brand over the years and the fact that they have survived multiple downturns in the economy makes them stable companies to have in a portfolio.
The word "yule" comes from the Old English "geol," which came in turn from the Norse "jol," a pre-Christian midwinter festival. Therefore, an investor who needs cash on a whim can confidently create a sell order for his stock knowing that there will always be a buyer on the other end of the transaction. Blue chip stocks are seen as a less volatile investments than owning shares in companies without blue chip status because blue chips have an institutional status in the economy.
Although changes made to the DJIA index are rare, an investor tracking blue chips should always monitor the DJIA to stay up to date with any changes made. Mistletoe was an element in European mid-winter celebrations for thousands of years before the advent of Christianity, and like many "pagan" traditions, mistletoe was eventually integrated into Christmas tradition, although it has no religious significance in itself.
Poker players bet in blue, white, and red chips with the blue chips having more value than both red and white chips.
The stocks are highly liquid since they are frequently traded in the market by individual and institutional investors alike. Today a small sprig of mistletoe is often hung in a doorway, tradition dictating that anyone caught under the sprig must submit to a kiss.
The "tide" in "Yuletide" comes from the Old English "tid," meaning "division of time," and in the case of "yuletide" means simply "time or season. For years the Holidays not only crept up on me, but tippy-toed right past me as I sat, snoozing peacefully, at my desk. The solid balance sheet fundamentals coupled with high liquidity have earned all blue chip stocks the investment grade bond ratings.
Conservative investors with a low risk profile or nearing retirement will usually go for blue chip stocks. An investor can track the performance of blue chip stocks through a blue-chip indexwhich can also be used as an indicator of industry or economy performance.
In his book The Intelligent Investor, Benjamin Graham points out that conservative investors should look for companies that have consistently paid dividends for 20 years or more. Those pagan traditions certainly have staying power -- even as I write this, a commercial on the radio promises that a haircut from a certain "salon" will provoke reactions from the opposite sex equivalent to wearing a "mistletoe hat.
But if we go all the way back to Old English, there are some hints.
The Norse "jol" may be related to an ancient Indo-European root meaning "to go around," in this case referring to the "turn" of the year.
These stocks are great for capital preservation and their consistent dividend payments not only provide income, but also protect the portfolio against inflation.
Although the American Heritage Dictionary defines "mistletoe" rather dismissively as "a Eurasian parasitic shrub," most of us view this innocent little plant in a warmer light. A blue chip company is a multinational firm that has been in operation for a number of years.
Everyone found the concept unbelievably vulgar at the time, but now it seems almost quaint -- compared to the Christmas episode of "Baywatch," certainly.
In our last outing together, we began to explore some of the terms associated with "the Holiday Season. Blue chip companies are also characterized as having little to no debt, large market capitalizationstable debt-to-equity ratioand high return on equity ROE and return on assets ROA.