Anonymous
I've looked through the STI ETF and I don't quite like how there is a high concentration in financials, therefore I would like to self invest in some of them. Would appreciate if you could share which would be a good investment for you, thanks in advance!
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Joe Lee
06 Mar 2020
Adventurer at Game of Life
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There is no "must buy" blue chips. but if i were to choose among the blue chips, I would go with DBS as it has strong management and growth and in my opinion, will be the least likely to fall.
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There's no guarantee that a blue chip today will still be a blue chip in the next 10, 20 or even 30 years, take Nokia as an example. If you find the the STI ETF is too heavily weighted on the banks, try to explore other markets or even consider holding a global ETF for greater diversification.
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Rais M
06 Mar 2020
Accountant at SME
This is a very tricky question. A stock that was a blue chip many years ago might not be a blue chip today. This is due to the ever changing economy and what the market wants.
Banks today might still be considered a blue chip stock, but 10 years down the road, when digital/virtual banking becomes mainstream, there is a possibility that banks might no longer be considered a blue chip company anymore.
Look a Singtel, many many years ago, they were a monopoly. Than we have M1, Starhub and the upcoming 4th telco. Not to forget all the smaller market players like Circle that are changing the market.
If you do plan to self invest in stocks, i suggest that you can consider widening your scope. Do not just focus on blue chip stocks only. Blue chips can form a portion of your portflio, but at the same time, you should also pay attention to other companies to invest to diversify your risks. Who knows, these other companies might grow faster than the blue chips.
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When I first started out , people were giving βtipsβ like buy DBS! Buy singtel ! Buy comfort! Or bu...
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I feel that BANKS are a good addition, they are essential to the country system and will adapt to environmental changes accordingly.
Not sure how virtual banking will come into play though.