Wannabe Warren Buffetts always try to find value where others don’t see it, whether it’s hefty blue chips or growthy small caps.
More often than not, though, these investors find themselves owning stocks that are cheap for a reason, as opposed to stocks that are merely undervalued. (The difference being that the latter won’t be cheap forever, while the former will siphon the money out of your portfolio faster than a vacuum cleaner.)
Below are my picks of beaten-down Blue Chips that have plenty of admirers among the web stock commentators who prognosticate about these things. By the way, I include myself amongst this august and occasionally wrong group. The blue chips that I have listed below may look pretty to investors, but a closer look shows that they are in Wall Street’s penalty box for a good reason.