NFLX is a core long-term hold; trading at $82 vs $127 fair value due to strong unit economics and growing library, despite risk of consumer shift to short-form video.

The next stock I will highlight as a candidate to buy and hold forever is Netflix, the leader in live streaming. Netflix has spent more than a decade learning how to create content that consumers love to watch and to do so in a cost-effective way.

Of course, any studio can produce great content and spend hundreds of millions of dollars to make a movie that everyone loves, but can you make money while continuing to produce that movie with a budget of hundreds of millions? This is the difficult part.

I always talk about this, and I mentioned something about my book earlier. The first two chapters deal with customer value proposition and unit economics, and they go hand in hand.

It's easy to offer a great product to customers and then sell it at a very cheap price. Consumers will love that. It will generate significant sales. But can you do that sustainably?

Can you do that while still making a profit that keeps your business afloat? This is the tricky thing, doing both things together, and it's something Netflix has almost perfected.

It produces content in a way that has allowed it to achieve an operating profit margin of over 30%, which is constantly increasing.

This feature is enhanced over time, because the content that Netflix produces today will be no less enjoyable to watch 5, 10, 20 or even 30 years from now.

Imagine new subscribers discovering "Stranger Things" for the first time 5, 10 or 20 years from now. Or imagine new subscribers discovering the "Squid Game" series for the first time 5, 20, or 30 years from now, right?

Therefore, the entertainment value does not diminish over time, and it builds its library of assets year after year. She continues to add more and more great content to her portfolio.

When a new subscriber joins Netflix 5 years from now, there will be more content that he will love . After 10 years, there will be more content, and this will accumulate because Netflix produces better content than almost any other studio, in large quantities and in a cost-effective way.

This competitive advantage will be difficult for any other service providers to replicate.

The biggest risk I see facing Netflix is a major shift in consumer behavior. We are already seeing that the younger generation with shorter attention spans is turning to short-form content on TikTok, YouTube Shorts and Instagram Reels.

This is the biggest threat I see to Netflix in the long term, and it's just a gradual shift towards it. As this generation ages and becomes the primary consumers of content, they will continue to gravitate towards short-form content, a form of content in which Netflix has no competitive advantage.

So, the rating is also very attractive, although it is not the most important thing I look at . Netflix stock is trading at $82 per share, and I have calculated a fair value for it of $127.

Netflix is another stock I own in my investment portfolio. It is one of my largest financial centers, and I believe it is my second largest. I am interested in adding more over the years if it stays at these levels and is maintained for a very long time.