Long-term investing: power of holding great companies

PARAGRAPH 1 --- Warren Buffett, renowned for his long-term investment strategy, has consistently recommended holding quality companies. One such company, American Express, has been in his portfolio for nearly four decades. Historical data shows that investors who weathered bear markets and stayed invested in the S&P 500 have come out ahead. IRA millionaires and successful investors alike share a common trait of holding stocks for extended periods, with a buy-and-hold strategy proving most effective.

PARAGRAPH 2 --- This narrative impacts long-term equity investors, particularly those focusing on value and dividend growth. Companies with strong business models, such as American Express, Realty Income, and Vici Properties, benefit from this strategy. It encourages investors to look beyond short-term market fluctuations and focus on fundamentals, driving demand for stable, dividend-paying stocks.

PARAGRAPH 3 --- Next, watch for Berkshire Hathaway's annual letter (expected in late February), which may provide insights into Buffett's current holdings and thoughts on long-term investing. Additionally, keep an eye on the performance of the S&P 500 during the upcoming earnings season (Q1 2023, starting late April), as it will reflect the market's sentiment towards long-term investing. Lastly, monitor the dividend growth and payout ratios of the mentioned dividend kings and high-yield stocks to assess their sustainability.