Baidu - my first investment to beat the NASDAQ

baidu investment

On 01/04/2016 I've started the journey to beat the NASDAQ. I've just bought Baidu shares. That's my short explanation why did I choose this company.

It's hard to choose which shares to buy. Let's see what Baidu does and why I bought these shares. Just follow 10 things investors should know about a company before investing.

 

1. Industry

Baidu is a Chinese internet search provider. It's competitors on NASDAQ are: Alphabet, Yandex and Yahoo.

2. Competitive Advantage

I chose Baidu because I think that it will grow faster than competitors. Chinese internet will develop faster than American or Russian. They also have some ambitions like driverless cars.

3. Chief Executive Officer (CEO)

Since 2004 what is impressive.

4. Revenue Growth

Strong growth. 30+% y/y. Grows every year.

5. Net Income

Also good. Huge peak Q4 2015. Growth is more important for this company that income.

6. Profit Margin

25-55% past few years. It's really impressive. 

7. Debt-to-Equity Ratio

44% what is not too much. Still there is a space for investments.

8. Price-to-Earnings Ratio (P/E)

12.72 what is not too much and less than most competitors.

9. Future

Chinese internet grows fast. Baidu should grow fast in the future.

10. Risk

Chinese market, NADAQ collapse, P/E is quite high, new competitors, foreign exchange risk.

 

Worth to mention that Baidu doesn't pay a dividend. I'm aware of that and think it's a plus. They invest money instead of payind dividend. It's ok for me.

 

Baidu beated Chinese internet and I hope I will beat the NASDAQ with Baidu as well. I consider Baidu as a long-term investment. This company looks like a good choice for the future.

 

What do you think about Baidu? Did I invest in proper shares? Which shares would you invest?

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Comments

nice analysis! I'll be following your posts

I have Baidu in my Portfolio as well. I've earned some cash thanks to it but it will rise so I still keep it.

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