Best Blue Chip Stocks To Own For 2015

Below is a verbatim transcript of the interview. Also watch the video.

Q: I can invest Rs 5,000 per month and I want Rs 20 lakh in 10 years. How should I allocate that money?

A: Lal Babu, because your objective here is to make a corpus, you have set a target of Rs 20 lakh, within 10 years�time limit. If you plan to invest Rs 5,000 per month, your focus should be on asset classes where the real rate of return is more than inflation. Only then will be get good returns. So you can invest in equity funds. There are two funds �the HDFC Equity Fund , which is a multi-cap fund and has a very long established track record, you can definitely consider this. Second, would be the ICICI Focus Blue Chip Fund . As the name suggests, it invests in blue-chip companies.

So,  every month you can put in money in those two fund. When you are investing through SIP, make sure that the dates for both these funds are different, to enable you to get benefits out of the volatility in the market. If we are considering an annualised return of 12% and if you are continuing your investment process for 10 years, you can get a corpus of upto Rs 11 lakh, which would be a lot less than your target.

Best Blue Chip Stocks To Own For 2015: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By David Hanson and Matt Koppenheffer]

  In this video, Motley Fool financial analysts David Hanson and Matt Koppenheffer discuss three reasons American Express is well-positioned and a possibly better than Visa (NYSE: V  ) or MasterCard (NYSE: MA  ) �as�way to play the growth in plastic.�

• [By Motley Fool Staff]

  Remer: Oh, huge opportunity to change. But it will take time. You asked about MasterCard. It will take time to potentially replace the ecosystems that exist and how are those leading organizations -- the MasterCards, the Visas (NYSE: V  ) , the American Express (NYSE: AXP  ) , the PayPals -- going to come down to the next generation and give them the reason why they should utilize that same payment system.

Best Blue Chip Stocks To Own For 2015: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By WALLSTCHEATSHEET]

  IBM is a global technology company that provides essential products and services to companies and consumers worldwide. Chinese PC maker Lenovo Group agreed to buy IBM Corp’s low-end server business for $2.3 billion. The stock has been struggling over the last couple of years and is currently trading sideways. Over the last four quarters, earnings have been rising while revenues have been declining, which has left investors optimistic about IBM�� earnings announcements. Relative to its peers and sector, IBM has been an average year-to-date performer. WAIT AND SEE what IBM does the rest of the quarter.

• [By Dan Caplinger]

  At the other end of the spectrum is IBM (NYSE: IBM  ) , which is by far the most influential stock in the Dow. Its 5% return over the past year isn't all that bad, but because IBM has more than 10% weighting in the average, its underperformance cost the overall Dow more than a percentage point of returns compared to an equal-weight Dow.

• [By Monica Gerson]

  International Business Machines (NYSE: IBM) is expected to post its Q4 earnings at $5.99 per share on revenue of $28.25 billion.

  Advanced Micro Devices (NYSE: AMD) is projected to post its Q4 earnings at $0.06 per share on revenue of $1.54 billion.

• [By Geoff Gannon]

  Warren Buffett mentioned doing this before his recent investment in IBM (IBM). Basically, he wanted to know why people would be likely to prefer IBM to competitors and why they stay with IBM. In his CNBC interview, Buffet seems to say there is a certain tendency to bet on the known quantity when it comes to IT providers. He especially mentions this in regard to foreign companies. It was interesting to see Buffett mention doing this kind of scuttlebutt with IBM ��because in past interviews he's said that while he used to do all the Phil Fisher scuttlebutt ��he'd gotten to the point (by the 1990s and 2000s) where he kept Phil Fisher�� principles in mind but he could basically make a decision just from reading public reports.

Top 10 Gas Utility Stocks To Watch Right Now: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Dan Carroll]

  China's fellow BRIC member, Russia, comes in as even cheaper, with an average P/E of just 6. That's a cheaper valuation than any member of the Dow currently; the closest blue-chip stock to Russia is Chevron (NYSE: CVX  ) , which sports a P/E of 8.9. Coincidentally, one of Chevron's biggest global rivals has become one of Russia's brightest companies: Russian state-owned oil major Rosneft became the largest publicly traded oil company in the world in March after purchasing TNK-BP, outstripping Chevron and fellow energy rivals in size.

Best Blue Chip Stocks To Own For 2015: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By Chris DeMuth Jr.]

  The requirement that REITs return 90% of their after-tax earnings in cash to their shareholders automatically forces the management team to issue new debt or equity to fund growth projects. Other publicly traded companies are not forced into this discipline. An example of this is Apple (AAPL). They have amassed almost $172B of cash or marketable securities, about $187 per share, for which they have no immediate use. If they were a REIT a lot of it would have been returned to the shareholders. In the REIT world, a rights offering is often used to allow the current holders to effectively get the right of first refusal on the offer and preclude themselves from being diluted. If Apple was a REIT and wanted to fund a growth project that required more cash, they would need to raise cash via debt or equity. Then the shareholders can decide if they think it is a good idea to participate in the new offering or not.

• [By Evan Niu, CFA]

  One of the biggest criticisms of Samsung's mobile device lineup is the company's continued use of plastic casings. At a time when rivals like�Apple� (NASDAQ: AAPL  ) and�other�Google� (NASDAQ: GOOG  ) Android OEMs are focusing heavily on materials selection and build quality, Samsung has been sticking to plastic. Recent rumors suggest that Samsung may be preparing to up the game in build quality and materials.

Best Blue Chip Stocks To Own For 2015: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By Alex Planes]

  Restaurateur Ray Kroc opened his first McDonald's (NYSE: MCD  ) franchise on April 15, 1955. The hamburger joint had been around since 1948, but it was only after milkshake machine vendor Kroc sought to emulate the McDonald brothers' successful fast-food formula that McDonald's took its current form. The first Kroc franchise wasn't at the level of today's McDonald's stores, with their standardized, rapid assembly-line preparation methods. Potatoes were still hand-peeled and sliced in the store then, and soft drinks were served from syrup barrels. Kroc quickly progressed beyond this level of charming simplicity, and by 1958 he owned exclusive franchise rights and 38 restaurants. True growth was about to begin.

• [By Sean Williams]

  Take McDonald's (NYSE: MCD  ) which spends what's estimated to be $12 million to $15 million annually to sponsor car No. 1, driven by NASCAR's Jamie McMurray. McDonald's, according to research firm Interbrand, is the seventh most-valuable global brand, worth an estimated $40 billion. It continues to bring in new customers with innovative food options and competitive value menu pricing, but it also relies on brand value impressions at major sporting events like NASCAR races to drive traffic to its restaurants. The lesson here is that well-known and readily visible companies often make for solid long-term investments.

Best Blue Chip Stocks To Own For 2015: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

• [By TaniaC]

  Colgate-Palmolive Company (CL) is a consumer products company whose products are marketed in over 200 countries and territories throughout the world. It operates in two segments: Oral, Personal and Home Care and Pet Nutrition.