Warren Buffett once wrote, “Our favorite holding period is forever.” While it's hard to argue with the Oracle of Omaha, most of us will find that “forever” doesn’t work in all cases. When stocks head south, second guessing increases.
Are your clients wondering why you suggested a good dividend payer that has sunk with the recent market downturn? If so, it's time for a check on why you recommended the stock and whether that reason is still valid. If the stock has been a solid dividend growth equity, has the company continued to increase its shareholder payments? Has the stock fallen in line with the overall market? If the answer to those two questions is yes, there’s a good chance that the position is worth holding.
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