Baidu.com, Inc. (ADR) (BIDU), Tesla Motors Inc (TSLA), LinkedIn Corp (LNKD): 3 Warren Buffett Growth Stocks

3. LinkedIn Corp (NYSE:LNKD): Buy for its stellar management AND sustainable, competitive advantage

LinkedIn Corp (NYSE:LNKD)‘s P/E stands at an astronomical 490. And with such a high multiple, any slip-up could send the company’s stock price spiraling downward. One area that could mean the end LinkedIn Corp (NYSE:LNKD)’s 75% run-up over the past year is mobile. Like Google Inc (NASDAQ:GOOG) and Facebook Inc (NASDAQ:FB), the company will have the challenge of monetizing users as they switch from desktops to portable products.

Luckily, the company shows that it has plenty of room to grow. Currently, it has 225+ million members in its network out of a possible 700 million worldwide. As the company continues to add more than two new users a second, LinkedIn Corp (NYSE:LNKD)’s growth and P/E seems reasonable.

Most importantly, LinkedIn Corp (NYSE:LNKD)’s management is experienced and can capitalize on the market opportunity — whether it be in display ads, premium subscriptions, or recruiting solutions. Of course, it all starts with the user. CEO Jeff Weiner knows that and is doing all he can to engage them better. Under his watch, LinkedIn has acquired the popular mobile newsreader app Pulse and rolled out new product features like Contacts to make the professional network more “sticky.”

“Our favorite holding period is forever.”

Which of these stocks is the most sure-fire path to profits? Well, that depends on which company (or companies) you understand — which stock(s) fall within your “circle of competence.” If you understand the economics behind social networks and professional recruiting, then LinkedIn may be the best buy; car mechanics, Tesla; search and all things digital, Baidu.

One thing you should keep in mind, though, is that not everyone can be Warren Buffett. But if you follow his advice, you can at least outsmart the financial media — and maybe retire a bit early.

The article 3 Warren Buffett Growth Stocks originally appeared on Fool.com and is written by Kevin Chen.

Fool contributor Kevin Chen owns shares of Baidu. The Motley Fool recommends and owns shares of Baidu, Google, LinkedIn, and Tesla Motors (NASDAQ:TSLA).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.