Stocks on the move: FL, GPS, AMAT >>> READ MORE

7 Blue-Chip Stocks You Shouldn’t Hold Anymore

Even reliable, longtime holdings have an expiration date

    View All  

Marriage should be for life. But stock ownership? Not so much. Yes, I understand that a long-term buy-and-hold strategy keeps fees and taxes low and has generally proven to be a solid plan. But not all stocks are keepers — even supposedly reliable blue-chip stocks. Sometimes you’re better off casually dating them for a while and then moving on.

7 Blue-Chip Stocks You Shouldn’t Hold Anymore
Source: Shutterstock

This obviously applies to speculative plays like biotech companies, tech startups or oil and gas exploration companies. But it can just as easily apply to established blue chips — even ones you might have held for years or even decades.

So, when should you consider parting ways with a long-held blue-chip stock? I have a few general guidelines.

  • To start, do an honest assessment of the company’s growth prospects. If its market is mature and not likely to see significant growth, it might be time to move on.
  • Also, look for the possibility of technological obsolescence. If you’re not sure what I’m talking about here, look at what Apple Inc.’s (NASDAQ:AAPL) iPhone did to BlackBerry Ltd (NASDAQ:BBRY).
  • Price is also a consideration. If a blue chip is simply too expensive, then your returns going forward likely will be disappointing.
  • But more than anything, think of opportunity cost. Money you have invested in a given stock is money you can’t invest elsewhere. So make sure that stock is the best use of your limited funds.

Today, we’re going to look at seven blue-chip stocks that you probably shouldn’t hold anymore.

All had their day in the sun … but now it’s time to move on.

Next Page


Article printed from InvestorPlace Media, http://investorplace.com/2017/07/7-blue-chip-stocks-you-shouldnt-hold-anymore/.

©2017 InvestorPlace Media, LLC