If I Could Buy Only 1 Stock, This Would Be It

There are a handful of stocks that I would consider essential in every serious investor's portfolio. A couple of these elite stocks have earned permanent spots in my own stock holdings. And if I had to select a single stock that should deliver strong returns for the long haul, that's an easy choice. We are obviously talking about media-streaming veteran Netflix (NASDAQ: NFLX).

Yes, I know. Netflix is a one-trick pony, right? The company dominates the global video streaming sector with 209 million paying subscribers and a sector-leading annual content budget of roughly $15 billion. At the same time, a swelling tide of new competitors makes many investors wonder why they should be excited about Netflix, or even vaguely interested in the stock.

I have a few answers to that question. For one, Netflix co-CEO Reed Hastings likes to remind investors that the company actually competes against basically every leisure activity under the sun. Another video-streaming rival or two won't change the competitive landscape all that much if you consider board games, sleeping in on a Saturday, or uncorking some wine in good company as head-to-head competitors. In fact, more streaming options arguably validates the whole idea of the business model that Netflix pioneered more than a decade ago. When everyone else stops making fun of your game-changing ideas and tries to copy them instead, you're doing something right.

Source Fool.com