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The Top Performing Blue Chips for 2016 (Plus 1 Quick Investing Lesson)

2016 recently came to an end and it is time to tally up the scores.

recent report from bourse operator Singapore Exchange Limited (SGX: S68) scored all 30 stocks that make up the Straits Times Index (SGX: ^STI) – these 30 stocks are often referred to as blue chips – and ranked them in terms of their total returns in 2016. Here are the top five performers (figures as of 30 December 2016 unless otherwise stated):

  1. Airline catering firm SATS Ltd  (SGX: S58) emerged as the top dog in 2016, clocking in a total return of almost 31%. SATS has a market cap of $5.4 billion.
  2. In second place is Golden Agri-Resources Ltd (SGX: E5H). The palm oil producer logged in a total return of 28% for the year and has a market cap of $5.5 billion.
  3. Thai Beverage Public Company Limited (SGX: Y92) lands in third spot with a total return of a little over 27%. The Thailand-based food and alcoholic beverages giant has a market cap of around $21.6 billion.
  4. Agri-business conglomerate Wilmar International Limited (SGX: F34) picks up the fourth spot with a total return of 25%. The firm also has the largest market cap of the lot at $22.7 billion.
  5. Finally, casino operator Genting Singapore PLC (SGX: G13) sits in the fifth position with a total return of around 21.6% for the year. Genting Singapore has a market cap of $10.9 billion.

If you’re a Foolish investor, you may think that a one year timeframe is a short one. It is worthwhile to note that four of the five companies above were not the top performers last year, which leads me to a quick investing lesson.

The top five winners in 2015 included companies and trusts such as ComfortDelGro Corporation Ltd (SGX: C52)Hongkong Land Holdings Limited (SGX: H78)CapitaLand Limited (SGX: C31), and Ascendas Real Estate Investment Trust (SGX: A17U). The only company which was part of the top-five in both 2015 and 2016 is SATS.

The lesson here is that the list of top performers for a 12 month period can change from year to year and can’t give us much long-term insight. As investors, we might want to measure performances of a stock over at least three to five years to get a better picture of what long-term winners look like.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange and SATS. Motley Fool Singapore contributor Chin Hui Leong owns shares in Hongkong Land.