Getting rid of Baidu (BIDU) in January 2008 is undoubtedly the worst sale of my investing career. Taking a 192% profit off the table, it is up some additional 250% since. This trade now stands as my personal Exhibit A of how not to manage a winner.
I'll never be able to get the same cost basis, but at least I can try to build the same position as before. After this month I'm just short of halfway back; perhaps the market will put it "on sale" sometime in the future, just for me...
Baidu (BIDU)
Positives:
The Google of China.
High margins (39% profit, 43% operating), ROA (25%), ROE (45%).
No debt.
Negatives:
Very expensive P/E ratio of 102.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Apple (AAPL) 11.93%
Southern Copper (SCCO) 10.83%
Google (GOOG) 6.79%
Dominion Resources Black Warrior Trust (DOM) 6.60%
Ace Limited (ACE) 4.61%
The Distressed (AIG, BGP, C, CRIC, ENER, ETFC, F, GIGM, JSDA, JTX, MOT, PCS, WFC, YRCW) 4.16%
Apache (APA) 4.07%
Baidu (BIDU) 4.05%
Annaly Capital Management (NLY) 4.05%
BP Prudhoe Bay Royalty Trust (BPT) 3.97%
Hugoton Royalty Trust (HGT) 3.89%
Cherokee (CHKE) 3.74%
Frontline (FRO) 3.57%
American Software (AMSWA) 3.16%
Great Northern Iron (GNI) 2.96%
Prospect Capital (PSEC) 2.85%
Vodafone (VOD) 2.83%
Blackstone (BX) 2.79%
McDonald's (MCD) 2.63%
DuPont (DD) 2.59%
Intel (INTC) 2.50%
F5 Networks (FFIV) 2.06%
Intuitive Surgical (ISRG) 1.48%
Cree (CREE) 1.30%
