Background....My wife is pretty disappointed with her latest Banker's Trust statements and is looking for options.
I suggested that she forget the funds and just buy Blue Chips. But she doesn't trust my advice (with good reason I suppose, the last advice I gave her was to buy VCM at 93c, after a 10 for 1 swap they are now worth $1.20, so she's down about 80% on that one.).
She's got about $20,000 and is looking for long term growth, preferably with dividend re-investment.
I've suggested CBA, NAB, BHP, CSR. But it begs the question, what exactly are the blue chips these days? And how do you define Blue Chip?
My definition of a Blue Chip is a stock that will reliably deliver good dividends, and would not go down by more than 25% in even the worst market collapse.
