Blue chip shares should form the foundation of all ASX investors’ diversified portfolios…

Or so we’re told.

Imagine if you owned two ‘blue chip’ bank and mining shares in your portfolio a year ago.

Just look at those share price returns:

Source: Google Finance

If that were your foundation a year ago, I’d be getting on the blower to your advisor, as soon as possible.

ASX 10,000 here we come

You see, a year ago, pundits were making all kinds of crazy forecasts. They thought bank and mining shares would take the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) above the 6,000 point mark to beyond who knows what.

Hindsight’s great, of course. But you needn’t have a genie in a bottle to recognise the banks and miners were overpriced and headed for a rough patch. In fact, more pain could be in store.

Indeed, few shares in the S&P/ASX 100 (ASX: Index: ^AXTO) (ASX: XTO) should be considered ‘blue chip’, in my opinion. A ‘blue chip’ share is not just big. It weathers downturns. It’s high-quality, and has widely accepted products.

3 healthy blue-chip shares for every ASX investor

In my opinion, the following three ASX shares are deserving of a blue chip label and would make a worthwhile addition to portfolios, at the right price.

  1. Cochlear Limited (ASX: COH) – if you know someone with hearing loss you’d know Cochlear serves the highest-quality products to a global marketplace. This $6 billion healthcare business continues to go from strength to strength.
  2. ResMed Inc. (CHESS) (ASX: RMD) – is the Cochlear equivalent of the sleep apnea and related respiratory disorder market. The company’s Continuous Positive Airway Pressure (CPAP) and Automatic Positive Airway Pressure (APAP) devices are sold globally.
  3. CSL Limited (ASX: CSL) – arguably the ASX’s best blue-chip business over the past decade, CSL is the quintessential defensive company. The $47 billion biopharmaceutical business is a leading blood plasma product developer and manufacturer.

Foolish takeaway

A big company does not equal a good investment. Indeed, against the backdrop of a slowing economy and falling commodity prices, shareholders in some of the ASX’s biggest names should be actively assessing their exposure to all companies.

While the above three companies are certainly worthy of a spot on watch lists, personally I would wait for lower share prices before hitting the buy button.

Want our BEST technology stock idea?

Our expert analysts recently hand-picked their top technology stock idea for 2016. And it's easy to see why: It has a big dividend yield, is growing rapidly and has heaps of cash on its balance sheet. Best of all: their top stock pick of 2016 is yours free! Just click here, enter your email address, and we'll send you their research report. No credit card details or payment required.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool writer/analyst Owen Raszkiewicz owns shares of ResMed, Cochlear and CSL. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.