Finance

Blue Chips vs. Penny Stocks: Why Some Billionaires Choose the Riskier Path

In the realm of investment, the distinction among penny stocks versus blue-chip companies is important. Large, well-established businesses with consistent profits and a track record of expansion are known as blue-chip stocks, whereas penny stocks are smaller, less expensive businesses that trade for less than $5 a share. Although these equities are sometimes written off as risky, speculative investments, several bold billionaires have taken an interest in them. Because penny stocks have the potential for exponential development, billionaires frequently see opportunity in them. Successful penny stocks may produce returns that are tenfold larger than those of blue-chip stocks, which can...