Why I Loaded Up on Baidu

In the following video, Fool analysts Jeremy Phillips and Austin Smith discuss Internet search provider Baidu (NASDAQ: BIDU  ) , often referred to as China's Google (NASDAQ: GOOG  ) .

Baidu has underperformed the market by about 30% over the past year, Jeremy says. That's significant for a company that is so well positioned it essentially operates as a monopoly.

Scares over fraudulent Chinese companies have dragged down Baidu's price. Worries over a slowing Chinese economy also have delivered a blow, Jeremy says. But he sees this as a buying opportunity for the stock.

Because it operates in China, Baidu is one of the few Google-proof Internet companies in the world, Jeremy says. Baidu has been able to not only outpace Google's growth, but it has nearly doubled it, averaging about 70% growth, Austin notes. And that's in a nation where only about half of the people have Internet access.

With that growth, and a price that has Baidu trading at the same multiple as Google, the two analysts see the stock as a buy.

Baidu has been a longtime pick of Motley Fool superinvestor David Garder, and it has soared 1,092% since he recommended it in October 2006. David specializes in identifying game-changing companies like this long before others are keen to their disruptive potential, and in helping like-minded investors profit while Wall Street catches up. Learn more about how he picks his winners with a free, personal tour of his flagship service, Supernova. Inside you'll discover the science behind his market-trouncing returns. Just click here now for instant access.