Is Your Buy-and-Hold Stock Now a Sell?

Let's say five years ago you bought shares of Cisco(CSCO Quote) at a split-adjusted price of $5.15 a share. And you stuffed them away in part of your portfolio marked "buy and hold." These were going to pay for your retirement, the kids' education, a time share at the beach. Whatever.

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Is Your Buy-and-Hold Stock Now a Sell?

For the four years following your buy, the only reason to check the shares was to count up your paper profits. By March 27, 2000, a $10,000 investment in Cisco was worth $156,220. No doubt about it, spectacular gains in just more than four years.

But we all know what happened in March 2000. The technology-heavy Nasdaq Composite Index peaked and then began the long descent that's still going on. Cisco, after peaking at $82, fell to $61 in August and then $36 in December, and finally, hit $18 and change this month. Instead of being worth $156,220, that $10,000 investment of March 1996 is worth around $36,707. ...