Guru Ken Fisher (Trades, Portfolio) increased his stake in Baidu (BIDU, Financial) by 4.47% in the fourth quarter of 2015.
Fisher is the founder and CEO of Fisher Investments. Fisher Investments manages money for some of the wealthiest Americans, taking the approach of looking after clients by fully managing every aspect of the clients' portfolios including asset allocation, account setup and trading individual securities. The firm has a global investment approach, often looking for advantages when market conditions change.
A San Francisco native, Fisher grew up with the incredible advantage of having his father and legendary investor Philip A. Fisher mentor him about investing. Fisher's father's investment advice had a tremendous impact on Warren Buffett, who claims that 15% of his mental model investment philosophy is due to Philip Fisher.
Baidu is currently being traded in Germany, Mexico and Singapore.
Baidu was incorporated in the Cayman Islands on Jan. 18, 2000. The company is a Chinese language Internet search provider. Baidu focuses its business on these categories: search products, social products, UGC- based knowledge products, location-based products and services, music products, PC client software and mobile-related products and services. Currently Baidu ranks as the No. 4 most globally searched website, and the company ranks No. 1 in China as the most searched website, according to Alexa.com.
Baidu has a market cap of $65.34 billion, a P/E ratio of 34.90, an enterprise value of $60.41 billion and a quick ratio of 3.09.
Below is a Peter Lynch chart for Baidu.
Baidu has one good sign, according to GuruFocus.
Per Share Revenue: Consistent growth. Baidu has shown predictable revenue and earnings growth.
Fisher's decision to add to this holding was a smart decision for the following reasons.
- Using Google as a search engine is not permitted in China, giving Baidu a global differentiation advantage against the top competition.
- The company’s book value has grown at an average rate of 52% over the past 10 years.
- The company is trading far below its intrinsic value.
Disclaimer: Author does not currently own any shares of either of these holdings.
