Up 1.7%. Portfolio gain to date
Up 0.2%. BIDU stock from inception
Up 1.6%. S & P 500 from inception of investment (1,557 to 1,582)
Note: This is one of the fastest-growing companies its size in the world but with a sharp one-year slowdown in 2013 due to massive R & D expenses this year. The recent earnings history and consensus expectations for this dominant Chinese search engine are as follows:
$1.53 in 2010 (actual)
$3.02 in 2011 (actual)
$4.79 in 2012 (actual)
$5.32 in 2013 (consensus - 11% expected annual growth)
$6.75 in 2014 (consensus - 27% expected annual growth)
$8.59 in 2015 (consensus - 27% expected annual growth)
And yet even with this torrid growth, BIDU which is stll near not far from a 30-month closing low has only the same 13 PE relative to 2014 expectations that Pfizer has. This makes little sense to me even considering that BIDU earnings are slowing.
This is about as compelling a buy as I've ever seen and in the fullness of time I expect to earn a small fortune here. BIDU by the way was a $166 number in mid-2011 when earnings were only $3.02 a share versus an expected $5.32 this year. Two years ago, the major competitor was formidable GOOG but onerous Chinese government restrictions are chasing that company out of China and the major competitor today is Qihoo 360 Technologies (QIHU) which is just 1/8 BIDU's size.