Sometimes, it's a good practice to rank the stocks in your portfolio by conviction. At the top of the list should be your must-own stock, and if you were forced only to own one, that would be it. While only owning one stock is a hypothetical scenario, it reveals a lot about the qualities you look for as an investor.

Additionally, your highest-conviction stock should likely make up a large part of your portfolio; if it doesn't, you should consider adding to it (although it doesn't necessarily have to be the largest component). My top stock and largest holding coincide, so this isn't an issue for me. MercadoLibre (NASDAQ: MELI) is my top stock, and I think that after learning more about it, many investors would also consider ranking it near the top of their lists.

Although MercadoLibre is listed on the Nasdaq Stock Market, it's a Latin American company. It's divided into two wings: fintech and commerce. The commerce side is a lot like Amazon with an online store and a delivery service. The fintech side is more like PayPal Holdings with its Mercado Pago system acting as a digital wallet that consumers can use to pay for goods or send money to peers.

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Source Fool.com