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Google Inc (GOOG), Baidu.com, Inc. (ADR) (BIDU): 3 Buy-Now Stocks from the “World’s Greatest Retirement Portfolio”

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Two years ago, I identified 10 companies that I would be putting $40,000 of my own retirement money behind. This was, has been, and will continue to be my way of helping the world to invest better.

Since then, that sum of money has grown to $54,280 — a 35.7% increase, and $2,040 better than if I had just invested the money in the S&P 500.

Google Inc (GOOG)

Every month, I look over these stocks to see which three are tempting. I call these my “Buy Now” stocks because I think they’re pretty good deals.

Read the chart below to see how the whole portfolio has performed, check out my best buys and, at the end, I’ll offer up access to a special premium report on one of the 10 stocks.

Company Publication Date Change Vs. S&P 500 (percentage points)
Google (NASDAQ:GOOG) 6/26/11 80.8% 47
Pricesmart 6/28/11 71.8% 40
Baidu (NASDAQ:BIDU) 9/15/12 (12.3%) (42)
Intuitive Surgical 7/25/11 24.6% (3)
National Oilwell Varco (NYSE:NOV) 7/28/11 (12%) (43)
Coca-Cola 6/21/11 27.7% (4)
Whole Foods 7/5/11 69.3% 42
Amazon 7/12/11 28% (2)
Apple 6/30/11 37.5% 8
Johnson & Johnson 8/1/11 41.4% 9

Source: YCharts

Though it’s important to keep a long-term horizon, it’s also worth noting that these “best buy” lists can quickly yield great results. For instance, had you bought the three stocks I suggested in May of 2012, you’d be sitting on average returns of 32%, far outpacing the S&P 500’s return of just 19% since then!

So, without further ado, here are my three picks for June:

Google Inc (NASDAQ:GOOG)

Yes, Google Inc (NASDAQ:GOOG) stock has appreciated almost 50% over the past year. But this company has everything I look for in a buy-and-forget holding: top-notch management, a moat as wide as can be, and a culture of innovation that could create multiple profitable futures.

While some scoff at Google Inc (NASDAQ:GOOG)’s latest experiments with computing glasses, I think its reasonable to assume that wearable technology will be the next frontier for personal computing. Even if Glass isn’t a raging success, the fact that the company is innovative and willing to work on such products lets me know that people will continue using Google Inc (NASDAQ:GOOG)’s search engine –which is really what drives revenue — for years to come.

Long term, Google Inc (NASDAQ:GOOG) is trading hands at 16 times expected 2014 earnings. That seems like a fair price for one of the world’s best companies.

Baidu.com, Inc. (ADR) (NASDAQ:BIDU)

I’m waiting for someone to hit me over the head for continuing to put Baidu.com, Inc. (ADR) (NASDAQ:BIDU) on this list month after month. Indeed, the stock has lost 18% of its value over the past year, and I’ve been recommending it all the way down.

Why do I continue to do so? Because I believe that, while some concerns pushing the stock down are legitimate, they are short term in nature. First is the concern about Qihoo 360 Technology Co Ltd (NYSE:QIHU). Though the fiery start-up has managed to capture 15% of China’s search market, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) has the lion’s share of the rest.

Furthermore, as Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is spending the money now to build out the type of infrastructure and mobile strategy that will keep it relevant for years to come, Qihoo simply doesn’t have the financial resources to match what Baidu is doing.

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