To be rich in Singapore, you either need to be a successful entrepreneur or a good investor. Value investing is a valid strategy. You’ll put your money in a legit company that’s currently at a low point to take advantage of its rising stock prices once the company rebounds. But let’s clarify some of the terms in the title, first. Blue chip stocks are reputable corporations. These large companies have a long tradition and are well-established on the market. You can depend on their earnings because they’ve proven their financial capabilities. They are considered chips with the highest value. In Singapore, the blue chips are the largest listed companies in Singapore, on the Straits Times Index (STI). But sometimes, things get rough. During uncertain times, the most recent one being the COVID-19 pandemic, stocks can devalue. That’s how these stocks reach their 52-week lows. Luckily, chances are their companies will make a full turn-around based on previous experience. Hold your horses, though. Don’t make any investment without researching the company and its background. For example, Nokia was once a strong and powerful company and yet it has fallen from grace. The STI comprises the most prominent organizations in the world that have a lot of stocks available on the market. You can find 700 companies listed on the STI. Select the Singapore category, though, and you’re left with thirty. Out of these thirty companies, ten comprise almost 70% of the index. We’re talking about: DBS Group Holdings Oversea-Chinese Banking Corp (OCBC) United Overseas Bank (UOB) Singapore Telecommunications (Singtel) Jardine Matheson Keppel Corporation CapitaLand Ascendas Real Estate Investment Trust Thai Beverage Hongkong Land Holdings So why trust the STI? STI shows that these companies have increased their total returns by almost 15% since 2014 if we take into account both their dividends and capital gains. Besides, STI is under constant scrutiny. If one of these stocks doesn’t respect the criteria for STI inclusion, it’s replaced by a better one. How can you use this knowledge? Find the best 52-week low stocks. How To Find The Best Blue Chip 52-Week Low
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