As detailed in previous articles on this site, when blue chip stocks such as Caterpillar (NYSE: CAT) dip, it is time to buy for the long term.

While it is impossible to time the market, there is no reason not to take advantage of opportunities when it overreacts by purchasing shares of great companies such as Caterpillar.  This happened recently with Caterpillar, due to poor earnings.  It has also happened with Boeing (NYSE: BA) and Microsoft (NASDAQ: MSFT).  All of these stock prices have rebounded, as predicted in previous articles.

With the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor’s 500 Index (NYSE: SPY) at record highs, it is obviously a very forgiving stock market.  But the articles on this site are recommending that these stocks be bought for the long term.  In that role, all are suitable for growth, income, and value investors.

Warren Buffett is a master at this (big surprise).

He did very well buying shares of Wal-Mart (NYSE: WMT) last year when there were issues with its operations in Mexico.  Previously, he has done it with companies such as Goldman Sachs (NYSE: GS) and General Electric (NYSE: GE).

All are those companies are solid blue chips.  Each pays a healthy dividend, so income investors should be pleased.  When there are dips, growth and value investors can buy at a discount.   There is no better way to assemble a portfolio of long term holdings consisting of blue chip stocks purchased at a great price due to the short term inefficiencies of the stock market.