You're definitely doing the right thing to hold. I would only be concern with your portfolio balance. Looks like you have too many - not just financials but banks. You did didn't post the % per counter so it's hard to know if you're over-invested in Financials. I would sell some and get at least one agricultural counter at this time when they are low. I'd propose Kakuzi or Vipingo. I'm working on getting some myself.

@2012...Im also heavily averaging down my holdings in Kakuzi.
@ KakaM....some good advice there from @2012. Diversification also involves diversifying by industry. As it is you have a huge concentration of banks, not bad this season but what about the next, food for thought.
You can put in some money say in Kakuzi, BAT and the very oversold KPLC....Just my opinion.

I hope that the money that KCB intends to put into its subsidiaries will turn them around. Equity's already have.
Kaka M, since you seem to have a fetish for banks, i would suggest KCB:EQUITY 50:50. If you decide to enter other segments, you can consider the examples stated by others

Gatheuzi, I thought you made a killing from being 100 percent in banks a while back

I admire your patience 15-20 years you will still make money but If i was in your position i would try and treat my portfolio like a shamba you have to till, plant, weed it's not a forest where you plant trees and come to harvest after 15-20 years. Try and follow what is happening in the companies you are invested in what are the long-term prospects if you feel they are good companies also follow the price movement and average down your purchase price by buying at a lower price e.g safcom 3.7, KCB 17. It's a stock market(ni soko) so you have to keep checking the prices once in while and pick bargains.
And please avoid those agriculturals unless you know how to value biological assets

Thanks guys for your advice so far, My preference for banks is because big brother(Central bank) is watching, Will organise to diversify abit with your advice in mind, am thinking KPLC & the agriculturals, had thought about, of Centum which happens to be the financials am to diversify from. But I consider it to be planting time so intend to pump in more cash while balancing the same with other issues like real estate.

That's not true. I am one of the tea stocks enthusiasts. This does not however mean that it is to the exclusion of bank stocks. My investment in bank stocks for example is more than 10 times what I have in Agriculturals. For mainstream investors, financials are still the place to be, but I can't help smiling when I look at the performance of WTK over the last couple of years. And of course there is the "real estate" angle to think of.

As for banks, my preferences remain KCB, Equity & Coop. All these tend to fluctuate so buy them on the dips. HF is also one to watch.

To the value investor, the insurance stocks may also have some appeal.

E.g?

Wazua never seems to amaze me. when KQ was at 32 no one seemed to shout buy! now at 37?

@Merchant I'm here to issue a caveat emptor... I was wrong about Kakuzi in terms of future capital gains and further research I've done has proved that kakuzi is going to have a rough time in 2011...

1. The disruption from Egypt in feb/march might impact their sales
2. The persistent drought will not do them any favours
3. They are very diversified into avocado biz that few of us understand
4. Kapchorua and WTK present a better opportunity on the dividend, P/E, and NAV aspects

The above are the reason i activated a stop loss at 75 and sold out of the counter. Good luck to ya