My Two Top Stocks: Panera Bread Co (PNRA) and Baidu.com, Inc. (ADR) (BIDU)

I bought into Baidu.com, Inc. (ADR) (NASDAQ:BIDU) because it commanded more than 70% of China’s search market even as competition spiked in 2012. Moreover, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) has been around for more than a decade; the company just knows so much about Chinese Internet users. And similar to Google search, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) search gets smarter and smarter as people use it. As the country’s dominant search engine, it’s hard to see any company come close to Baidu’s 13+ years of user data to make search better.

So even though Qihoo 360 Technology Co Ltd (NYSE:QIHU) continues to gain market share in the search space, I have no fears that Baidu won’t come out on top. Perhaps the best way to put it is this: Like other Fools, I think the market tends to underestimate the advantage of first-movers and top dogs.

Notwithstanding Qihoo’s weaknesses, I think the search market has been decided for some time now.

Now, that only leaves mobile concerns. On that, all I can say is that (1) again, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is best poised to make the transition as it’s one of the few companies with more than a decade of experience tailoring products to consumer habits. You can bet that CEO Robin Li is going to throw all the money he can to make mobile work.

I’m considering buying more shares.

Baidu.com, Inc. (ADR) (NASDAQ:BIDU) makes up $877.50 of my portfolio.

The article My Two Top Stocks: Panera Bread and Baidu originally appeared on Fool.com and is written by Kevin Chen.

Fool contributor Kevin Chen owns shares of Baidu and Panera Bread. You can follow him on Twitter at @TMFKang or on Google+. The Motley Fool recommends and owns shares of Baidu and Panera Bread.

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