What are high-value stocks?
“High-value stocks” is the term used for the common stocks of large companies that have real growth records. These stocks cost more, but they are popular choices due to their stability and slow, steady growth.
Why are high-value stocks so popular?
One reason investors love high-value stocks so much is that they tend to have stable return rates. The journey may not always be smooth, especially during economic downturns, but these companies make profits over time.
Examples of high-value stocks
Many high-value stocks feature familiar names such as:
- Amazon (AMZN): Amazon was founded in 1994 by Jeff Bezos. It started as a book seller but expanded to sell almost everything. Its low prices and infrastructure give it a competitive edge. It was valued at over a trillion dollars in 2022.
- Alphabet (GOOGL): Alphabet is a holding company that manages Google, Android, Chrome, and lesser-known companies such as Verily and Waymo. It was also valued at over a trillion dollars in 2022.
- The Coca-Cola Company (KO): There aren’t many brands as recognizable as The Coca-Cola Company. Today, Coca-Cola is a global company with more than 700,000 employees. It was valued at around 264 billion dollars in 2022.
High-value stocks as part of a diversified portfolio
It is important to remember that high-value stocks are often part of a long-term buy-and-hold strategy. They can be a core component of a diversified portfolio that includes lower-risk investments such as bonds.
When part of a well-diversified portfolio, high-value stocks can provide stability and reassuring growth over the long term. There may be temporary fluctuations, but they are part of the sacrifice. Those times will return, time and again. If you own the stocks, you will feel that pain.
Source: https://www.thebalancemoney.com/the-benefits-of-owning-blue-chip-stocks-356063
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