In this third instalment of my Investment Decision series podcasts, I shares my thought process that went into buying shares of Baidu during the February mini-meltdown. When the market was going haywire in early February, I was watching to see if any stocks that I had on my wish list, were suddenly attractively priced. Baidu had made a big move downward, so I reviewed my notes to see if the fundamentals of the business were still intact. As always, for every stock that I am evaluating I utilize my 8 question framework. You can also read the accompanying blog post here as well.
UPDATE: In June 2018 I sold my shares in Baidu for a 23.1% gain (net of Foreign Exchange). The stock was prodding along in the low $220's and got as low as $214 but then it popped and I eventually sold at $271. I thought the stock moved pretty fast and crossed my 20 percent return threshold that I thought maybe it's good to bank the profit now and buy back in if it were to pull back lower, which given the volatile nature of the stock is more than capable of. I still like the company and many of the points I spoke to in this mind map video are still in play.
Previous instalments of the series