Purple Chip Stock
Categories: Stocks
John Schwinghamer wrote yet another investor guide in 2012 (there are only 13,782 of these kinds of books in existence...and yes, other than a small handful, most say the same things). This book contributed one memorable nugget to the Stone Soup of collective investing: a Purple Chip.
Purple. As in royalty (purple exists still today as the color of Royals; in 1723, it was very hard to get dyes in that tone, so it was...special). When you've cultivated the Kingliest or Queenliest of Blue Chip Stocks (maybe there are 50? 75?), you then get a royal set of maybe five that offer the best risk-reward dynamics.
But, of course, just as in all things investing, a Purple Chip is only purple for so long. Investing is, in large part, about aligning with a contemporaneous environment. And in this case, the modern era is all about the FANG stocks (Facebook, Amazon, Netflix, and Google). If you own them, your portfolio is rockin'. If you don't, you've likely underperformed the market.
Anyone betting FANG witll still be the the "It Girl" in 15 years? Yeah, not so much. Off with their heads.
Related or Semi-related Video
Finance: What is a Blue Chip?18 Views
Finance a la shmoop, what is a blue-chip? Alright people think kids, plastic, poker
chipset, remember those cheap plastic poker chips? [Someone looking at their cards]
Yeah the the whites were supposed to be a penny [The money equivalents of the chips are shown]
the Reds were a nickel and the Blues the most highly valued chips in the set well
they were worth a dime and that's where the name came from the highly valued
blue chip and it refers to high-quality, highly valued companies Disney, Coke and [Logos of the blue chip companies]
in today's world Google, Amazon, Shmoop alright maybe not Shmoop. All right but
the rest of those companies are blue chips which have a long track record of [Blue chip stamp]
growing profits if not revenues for a very long period of time and they have
corporate cultures that are all about winning [People playing poker with their heads replaced by briefcases with company logos on them]
whatever game they're in so go blue, well sure them too... [Football player is tackled]