Newest stock to add to the portfolio, $BIDU (Baidu, Inc.-ADR)
๐๐๐๐จ ๐๐จ ๐ฃ๐ค๐ฉ ๐๐ฃ๐ซ๐๐จ๐ฉ๐ข๐๐ฃ๐ฉ ๐๐๐ซ๐๐๐. ๐ ๐๐ข ๐ฃ๐ค๐ฉ ๐ฉ๐๐ก๐ก๐๐ฃ๐ ๐ฎ๐ค๐ช ๐ฉ๐ค ๐๐ช๐ฎ ๐ฉ๐๐ ๐จ๐ฉ๐ค๐๐ , ๐๐ช๐จ๐ฉ ๐๐ญ๐ฅ๐ก๐๐๐ฃ๐๐ฃ๐ ๐ข๐ฎ ๐ง๐๐๐จ๐ค๐ฃ๐๐ฃ๐ ๐๐๐๐๐ฃ๐ ๐ฉ๐๐ ๐ฅ๐ช๐ง๐๐๐๐จ๐.
To prevent this post from being too long, it will be completed in two parts. For now I want to discuss my reasoning behind the purchase and my long term thoughts. Over the weekend I will do a second post, diving a lot more into the financials behind the decision. My financial posts are often very informative but also quite boring, so moving forward I will look at separating the two, so those of you who do not enjoy the numbers, will not have to endure them.
๐๐๐ง๐ฉ ๐ญ
Who are Baidu?
First of all for those of you who do not know, ๐ฝ๐๐๐๐ช ๐๐จ ๐ ๐พ๐๐๐ฃ๐๐จ๐ ๐ฉ๐๐๐๐ฃ๐ค๐ก๐ค๐๐ฎ ๐๐ค๐ข๐ฅ๐๐ฃ๐ฎ. They're China's largest search engine, invest heavily the world of AI, Autonomous cars and AI chip manufacturing. All of these areas are high demand industries. Baidu has seen a recent decline in their search engine revenue, but this has been offset by the increase in the other sectors of their business.
๐๐ฎ ๐ฅ๐๐ง๐จ๐ค๐ฃ๐๐ก ๐ฉ๐๐ค๐ช๐๐๐ฉ๐จ.
I have been watching Baidu for a while now and I am not going to lie, after their recent price increase I almost did not purchase the stock. Not because I believe it is overvalue, but because of my bruised ego. Psychologically, after missing a 40% rise in a stock that I have been watching closely was hard to swallow. But I remind myself, over the long term, this is very insignificant. If we purchase a company for a period of years, then there is much more returns to be made.
๐ ๐ก๐๐ ๐ ๐ฉ๐๐ ๐๐ฃ๐๐ช๐จ๐ฉ๐ง๐๐๐จ ๐ฝ๐๐๐๐ช ๐ค๐ฅ๐๐ง๐๐ฉ๐๐จ ๐๐ฃ. They all have great long term potential. Search engines are great. AI is bombing, autonomous cars are in their infancy, AI chips are in massive demand.
Although their chips are currently inferior to NVIDIA, with current and likely long term trade issues between the US and China, it eliminates a lot of competition domestically for Baidu. On top of this, even if the trade issues disappear, as time goes on, AI chips are only going to be needed more and more. NVIDIA will only be able to create so many, so like many industries, their is room for more than one supplier.
๐๐๐๐๐ง ๐๐๐ฃ๐๐ฃ๐๐๐๐ก๐จ ๐๐ง๐ ๐จ๐ค๐ก๐๐ (I will go into this more over the weekend), but the numbers look good. The only main downside for me, ๐ฃ๐ค ๐๐๐ซ๐๐๐๐ฃ๐.Those of you who have read my other posts know how much I love a dividend. So for now, this will be purely a growth stock.
๐๐๐ค๐ช๐๐๐ฉ๐จ ๐ค๐ฃ ๐พ๐๐๐ฃ๐?
I often get asked questions like why do I have so many Chinese stocks, or am I not scared of the Chinese government and stocks?
Honestly it does not bother me at all. Like all countries, China want to make money too. In the last 20 years, they have opened up massively to free trade, with some great growth and long term goals from both companies and their government.
Personally, I look for stocks based on the companies themselves, their financials, The industries, their products, what I think of their future. So long as the country is stable, I am happy. China is a growing economy with plenty of opportunity to make money. It just so happens that many of their companies trade at low financial multiples, making them quite attractive.
For now I have only invested the recently deposited funds, but I over the coming weeks I will be balancing the portfolio, selling some stocks (maybe not entirely, just trimming positions), and strengthening others.
If you have any questions about Baidu or any stock questions in general, please ask away!
Have a great day!
Rhys Adams... Show More
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Sat Feb 14 2026 04:58:52 GMT+0000 (Coordinated Universal Time)
