Evaluate Your Blue Chips' Mission Statements

Action of the week

Background: Many iconic blue chip companies that have thrived for decades and overcome various challenges arguably did so, at least partly, because of the strategic clarity reflected in their mission statements. In contrast, many mediocre companies have ineffective mission statements that are vague, too long, generic and uninspiring.

Rationale: Blue chip investors should incorporate a review of the companies’ mission statements into their due diligence process for potential investments.

Action: For the blue chips you own, evaluate how effective their mission statements are. Determine whether there is a correlation between the companies’ long-term performance and the effectiveness of their mission statements.