Apple Inc. (AAPL), And Investment Opportunities for the Next Decade

The stock is already down almost 40% during the last 12 months and, at today’s price, the stock is a bargain in relation to analysts’ estimates. On average, analysts expect earnings per share to grow by 25% annually for the next five years. Yet, the stock trades at just 18.2 times earnings.

Baidu.com, Inc. (ADR) (NASDAQ:BIDU)’s growth story isn’t over. In the company’s fourth quarter of 2012, net income was up 36.1%, year over year. Furthermore, active online marketing customers increased 31%, year over year — that’s double the rate of growth of new clients in the year-ago quarter.

Going against the grain
As Buffett said in his 2008 letter to Berkshire Hathaway Inc. (NYSE:BRK.A) shareholders, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” For the bargain hunters out there, these excellent companies have both taken a nosedive.

AAPL data by YCharts

Buying excellent companies at good prices is the best way to invest for the next decade. Both Apple Inc. (NASDAQ:AAPL) and Baidu offer opportunities for investors to do this today. What do you think? Are Apple and Baidu great opportunities at today’s prices?

The article Investment Opportunities for the Next Decade originally appeared on Fool.com and is written by Daniel Sparks.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Apple, Baidu, Berkshire Hathaway, and Google. The Motley Fool owns shares of Apple, Baidu, Berkshire Hathaway, and Google.

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