Blue chip firms are industry leaders recognized for their staying power, long-term profitability and ability to weather market downturns and recessions. Like a poker player who wants to collect as many blue casino chips as possible, an investor looking for long-term gains will fill a portfolio with blue-chip companies. The term 'blue-chip stocks' entered market vocabulary in the 1920s thanks to investment writer Oliver Gingold, who worked at the predecessor to the Dow Jones company. On the other hand, blue is the color casinos most frequently reserve for their highest-value chips, so the term floated into popular culture to describe assets of the highest value and quality. Traditionally, white and red casino chips are the most common and carry the lowest values.
So, what are blue chips, anyway? If you've ever played table games like poker or blackjack at a casino, you likely noticed the different colors assigned to chips.
