Episode 20: Why You Should Be Wary of Investing In Blue Chip Companies

Nov 20, 2018 | Podcast Episodes

Investing in blue chips

This week we’re explaining a little bit more around our investment philosophy; why we advise against investing in big blue-chip companies just because they are big and familiar. Many financial advisors get their information from product providers, so the generally accepted knowledge is big well-known brands are a safer investment. In our opinion, that idea is flawed.

Focus On Choosing A Safe Investment

Listen in to find out why we tell you big doesn’t keep you safe. If you’ve been following the disaster that is General Electric, you’ll know shares have declined 85%. We explain the situation happening at General Electric that’s lead to this decline; and other big brands have experienced similar drops in the market.

Want to work with a boutique investment firm that has their finger on the pulse of the market, with the ability to be agile with your investments? Contact us at Investor Exchange today.

Our Investor Exchange Round Table Discussion Covered:

  • This week Joel predicts the correction in the market should pass shortly, and explains the nature of the market going through periods of backfilling and base building, before recovering from the types of corrections we’ve seen in the past few weeks. What that means is signs still look very favourable for the next 12-18 months. (2:30)
  • Brett shares Deputy Governor of the RBA Guy Debelle’s views on the biggest risk to the Australian economy, and how the changing shape of Australia’s population growth and access to finance are impacting supply and demand in the property market. (24:02)
  • What can we learn from the Black Eyed Peas career trajectory? Hard to say, but Louis guides us through it. Find out how he relates the Black Eyed Peas evolution to how to behave with your finances through the major changes in life, and how to change your awareness of your spending habits. (34:35)

You Cannot Be Serious this week:

  • The New York Jets are driving fans to drink drive! According to a 57 year old man in New Jersey who was pulled up, his reason for drink driving was ‘The New York Jets are just shit!”
  • A man in Mississippi crashed his car into the Harrison County Courthouse because he wanted to alert the authorities that his drug paraphernalia was stolen!
  • Bunnings have introduced a policy for the charity sellers of hot dogs, stating onions are not allowed to be placed on top of the sausage because they might fall and cause someone to trip on the bunnings floor!

Contact us at Investor Exchange for personalised advice on planning your taxes and your unique investment strategy.

Next Events:


Listener Questions:

Write in to get your investment and wealth management questions answered by Joel, Brett and Louis.

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The Investor Exchange Theme Music:  “Happy Happy Game Show” by Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0.

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The Investor Exchange

The Investor Exchange is weekly podcast where the expert panel share banter, tips and insights on how to grow and manage wealth.

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