Meaning
A blue chip is a share in a large, established, financially dependable company, and by extension any first-class, reliably valuable asset or person: blue-chip stocks, blue-chip clients, blue-chip recruits. The label promises quality and staying power rather than spectacular growth. Finance jargon, acceptable in business journalism. Beware the comfort trap - the label is no guarantee, since General Motors and Lehman Brothers were blue chips until the 2008-09 crisis. Regional use: American English (origin); now General English.
Origin
From poker, where the blue counter was traditionally the most valuable chip in the standard white-red-blue set. Wikipedia and Investopedia both credit Oliver Gingold, an early Dow Jones employee, who - standing by a stock ticker and noticing shares trading at 200 to 250 dollars or more - said he would return to the office to write about these blue-chip stocks; Investopedia dates this to 1923, while Wikipedia, calling the anecdote company folklore, says only the 1920s. The term originally meant high-priced stocks and later shifted to mean high-quality ones. Merriam-Webster dates first known use to 1892, a dating Wikipedia flags as unverified, so Gingold is best described as the popularizer rather than the certain coiner. Sports recruiting later borrowed the term for elite prospects.
Research Sources
References used to check this entry’s meaning, history, or documented forms.
Variants
- blue chipper
- blue-chip company
- blue-chip stock
Usage Examples
- Nervous investors moved their savings into blue chips such as the big utilities and consumer staples.
- The agency built a blue-chip client list, but the tiny startup account taught us the most.
- A blue chip rarely triples in a year; you hold it for the dividends and the slow compounding.