Selecting Blue Chips

Dear Mr. Tan,

In your blog, you mentioned to select 5 to 10 blue chips and invest $10,000 to $20,000 in each share. I wish to ask which are the 5 companies you feel has greatest value and potential? I understand this is in your perosnal capacity and that you are actually doing me a favour if you reply.

REPLY

I assume that, in a perfect market, the prices of each share reflects its future profitability. You only need to be concerned with:

a) Buying blue chip shares - as they are more stable
b) Have a certain degree of diversification.

I do not have any insight into which of the 30 shares in the STI index that I should invest it. I just chose one from each sector, say bank, property, conglomerate, media, transport.