ROCKVILLE, Md. Chinese philosopher Lao Tzu wrote, "If you do not change
direction, you may end up where you are heading." That's advice for
investing as much as it is advice for life. Netflix (NASDAQ: NFLX ) CEO Reed
Hastings got the memo on this. Yes, the pricing change and " apology " were
a PR disaster. Yes, the dual interface is inconvenient for customers and simply
a way to spin off and sell Qwikster as soon as possible. But at least Hastings
didn't just content himself with riding Netflix into the ground.
Unfortunately, as AOL (NYSE: AOL ) has painfully proven to us during the past
few years, recognizing the expiration date on your first great idea does not
guarantee you a second act. There are serious doubts about how Netflix can find
its way in the streaming video space. If you're looking for long-term
investments in this market, then, which picks are keeping up with the time? What
stocks can you rely on to evolve and lead the market a decade from now, rather
than get left behind? Here are five such investments for the buy-and-hold crowd
to consider: Exxon Mobil Crude oil is the lifeblood of the global economy, and
though demand waxes and wanes in the short term, the long-term trend is clearly
upward. Consider that global energy use is expected to jump 53% by 2035 ,
largely driven by strong demand from places like India and China, according to
the U.S. Energy Information Administration. That means the companies with the
biggest oil fields will see the biggest profit as demand soars and supplies
dwindle. And it doesn't get any bigger than Exxon Mobil (NYSE: XOM ). Lest you
think Exxon is contenting itself with its current stockpile of oil reserves, a
few weeks ago we learned of a massive deal with Russia's state-owned energy
giant Rosneft Corp. The joint venture will hunt for oil in the Arctic Ocean that
could tap into 2.2 billion to 7.2 billion barrels of new reserves. On top of
that, its $41 billion deal to buy natural gas giant XTO Energy was driven by the
assumption that, eventually, crude oil will fall out of favor. Natural gas has
been becoming increasingly favored because it is a cleaner-burning fossil fuel
and because of massive shale gas fields in the Northeast United States. Any way
you slice it, Exxon is a leader in global energy production and is likely to
stay there. Throw in a 2.5% dividend as a kicker, and this is a very good
long-term buy.
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