What Makes a Stock a Blue Chip Stocks constituent?
This screen identifies elite US-listed companies with market caps over $50B and ROE exceeding 20%, filtering for the most productive giants in the S&P 100. By focusing on these thresholds, investors can isolate firms like Microsoft, which maintained massive capital efficiency even as it scaled past a $2 trillion valuation in 2023.
Filter for Mega-Cap Scale
We start with a $50B market cap floor to ensure liquidity and institutional stability, similar to how Berkshire Hathaway anchors its portfolio with giants like American Express.
Screen for Elite ROE
A 20% ROE threshold identifies companies with durable moats, such as Visa, which consistently generates high returns on equity due to its dominant global payment network.
Validate Balance Sheet
We prioritize low debt to ensure durability, mirroring Apple's strategy of maintaining a massive cash pile that allowed it to weather the 2022 market volatility.