Are you willing to hold a stock for the next 10 years if the stock market shut down?

Are you willing to hold a stock for the next 10 years if the stock market shut down?

Is there a stock you are willing to hold for the next 10 years if the stock market shut down?

Warren Buffett used this analogy many years ago. If you are not willing to own the stock for at least 10 years, you should not be buying to own it for the next 10 days or even 10 mins.

This is a very useful "Thought Exercise". If you were to go through your portfolio right now, are the stocks in there companies you are willing to be a part of for the next 10 years if the stock market shut down? What about any other companies out there that might make the list?

This should give you a good list of ideas to research for the rest of the year!

PS: you don't have to generate a long list, maybe short list 12 and research 1 a month and you will potentially have 12 companies you know pretty well?

Joshua Fong, CFA

Article by Joshua Fong, CFA

Published 03 Dec 2022