Cabot China & Emerging Markets Report Editor Paul Goodwin is featured in MSN Money's New Investor Center, as one of 10 experts offering stock ideas for investors who want to build a portfolio of stable, solid stocks. Goodwin's recommendation is China's giant Internet company, Baidu (BIDU).
Excerpt from Money Central on MSN.com:
The 10 Stocks You Should Buy First
By Michael Brush
MSN Money, March 4, 2010
Invest in long-wave trends
Ideally, you want to put your money in front of long-term trends. There may be setbacks, but the rolling social or economic change will push your stock higher.
A great example is emerging-market growth. Countries like China and India have so far to go just to catch up with the developed world in terms of growth, productivity and living standards that, in the long run, stocks in solid companies exposed to this trend should go much higher.
The Chinese search-engine company Baidu (BIDU, news, msgs) offers a great way to play the hottest emerging market right now, believes Paul Goodwin, the editor of the Cabot China & Emerging Markets Report.
Baidu has 60% of China's Internet search market, compared with 30% for Google (GOOG, news, msgs), and should continue to because Google faces big challenges in China, including its continuing fight with government. Plus it doesn't understand Chinese-language search as well as Baidu, Goodwin says.
Baidu's growth potential is enormous because the Internet still reaches only 20% of homes in China. There's also plenty of room for more institutional investors to take positions in Baidu, which would drive the stock higher. Baidu has only about 200 institutional investors, compared with about 900 for Google.
Link to full article on Money Central on MSN.com.
Baidu Campus No 10 Shangdi 10th Street
Beijing, 100085 China
86 10 5992 8888
Index Membership: Nasdaq 100
Industry: Internet Information Providers
Full Time Employees: N/A
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