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Baidu and its CEO
2008-01-17 18:09

Thanks again to Baidu for giving me the chance to use Baidu's blog and write articles here ;)

Once, I get to know about the CEO of Baidu a few years ago. He was unique and special, that bring Baidu listed in Nasdaq.

http://youtube.com/watch?v=0_mWqlHk_lM

There are many reasons for investors to buy/invest in a company, such as the management of the company, strong earning power, low PE ratio, under-valued etc. And one of the unique way to through the performance/personality of the company's CEO/founder.

The CEO of Baidu, Robin Li passed away on 27 Dec last year. This sudden news gave shocks to the world, of course first impact to the investors who holding the company's shares.

From the day he passed away, the company (Baidu) shares drop from over $400 to today's closing at $293.30, which is more than 25% in 3 weeks time.

http://quote.fool.com/chart.aspx?s=BIDU&q=l&l=off&t=3m

So here you can see how a company's founder/CEO/management people can really affect a company heading, and of coourse we are referring to a 'reputable' founder/CEO.

And if another company's CEO/founder has bad records in the past (maybe involve in insider trading or whatsoever), the moment something bad happen to him (touch wood...), guess what, the said company's shares may go reversely up up and away!

So choose your investment style, whether it is looking at company's management, earning power, value, price or any related methods could be consider. But please don't 'tiang' (guess) ok ;)

Happy investing!


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