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Damodaran mentioned elsewhere that, no matter how good a Chinese company is, your biggest risk is always the Chinese government. So buying Chinese equities depends on your view about whether their government is a benefactor or an adversary to the business in question.
Everyone should invest in a way that fits his/her temperament the most, so just b/c Adam Khoo is not touching Chinese equities, it means jack shit to me.
I am Malaysian, Tencent is my third largest stocks ( just smaller than Costco and Brk-b) in my family portfolio…I might be wrong, but let calculate the Odds- how much I can lose and win in next 5 years…( say drop to HKD 200 and shoot to hkd 1,000…the odds is risking lost 1 for gaining 8…people may laughling me how can tencent shoot to hkd 1,000, but that means at that time ,market cap still less than usd 2 trillion….the most important for lay man like me is using simple Kelly criterion….as long as never Game Over in this game when you hit by worse case scenario. Is okay…
Recent q4 earnings Martin Lau mentioned Tencent domestic games ARPU (average revenue per user) is actually at very low end compared to industry peers. So regulation on spending is not their concern, since it wont hurt the company at all. And there is more room for domestic game revenue expansion (since they are at the low end ARPU)👌🏻
maybe im a noob but isn't tencent like a huge global company with revenues that are not exclusive to china? does this not mean that they can still do ok globally? Im not invested in tencent but just a thought.
The fact they own half of fortnite that is going to be worth maybe a trillion dollars in 10 years its worth buying just for that alone. Microsoft is inferior to tencent today. But tencent is trading much lower. This is an investment that will make you rich within 10 years if you hold it long term. The mobile gaming will be their big revenue driver long term. They are going to make so much money on all their games going forward that everything else they have is just a bonus.
Tencent stock has gone from about HK$270 earlier this year to HK$382 today (Jun 17, 2024). Of course Adam Khoo is quietly hoping everyone will forget about this episode.
I cannot help but wonder about Howard Mark's outlook on China. If you look at China's demographics, they are staring down the barrel of a gun, no small thanks to the one-child policy.
Marks mentions growth for the US will be limited in the future, whereas China still has plenty of room to grow. I guess he is referring to GDP growth. Birth rate is low all over Eastern Asia, especially China now that women want careers. Individual companies could of course still grow fast which is more relevant for both stocks and bonds
Damodaran said he would buy Tencent, but he did not say he actually bought Tencent. Unless you have another source, i do not believe he holds the shares. Chinese shares are not investable for me currently. Until maybe XJP steps down.
saw an article where Tencent says they may cede some of there fintech to Chinese banks, kind of sucks because this makes a larger portion of potential future growth.
The Chinese take a view on the economy that is very much the same as an industrialist - theres not much concern for speculations like real estate and market valuations and instead their focus is on industrial production and climbing the technology ladder. The Chinese government sets very clear objectives for itself and outlines its long term policy in multi-year plans. Investors should be mindful of and ideally align themselves with this industrial mindset when investing in China.
"for chinese companies, you're not a shareholder, you're a capital provider". Well, if a company is not paying a dividend and it's not buying back shares, that's what an investor is. I reject the notion that chinese companies behave any different from anywhere else, lots of "investors" are ready to buy in US companies with negative cash flow issuing shares and diluting them like crazy, then turn around reject China on ideological bases.
Chi Keng, the opportunity cost impacts you more than Adam Khoo. Adam is a millionaire. Your gains at 65 is less by not following the liquidity flow. Lossing time horizon.
I dunno if anyone is willing to b at the mercy of Beijing flip Flop policies on online game companies. Moderator can reason extensively but follow the money. The money is flowing right now out of China market. By exiting, Adam had cut his pain - ten cent was to him a sunk cost. AI stocks anyone?
Tencent's future growth isn't in games but in its social media platform. There is huge untapped opportunities with their video channel.
Damodaran mentioned elsewhere that, no matter how good a Chinese company is, your biggest risk is always the Chinese government. So buying Chinese equities depends on your view about whether their government is a benefactor or an adversary to the business in question.
Adam Khoo is such a newbie. Sold at the bottom. Lmao
Fortunately we can fully trust western companies.
It's like you don't know anything about 2008/9 financial crisis
Everyone should invest in a way that fits his/her temperament the most, so just b/c Adam Khoo is not touching Chinese equities, it means jack shit to me.
Adam plays in the stock market like a casino 😁. However, the communist government don't like casinos. So goodbye, good riddance! 🤣🙃
TIME to BUY IN TENCENTTTT
I hope you're right, Tay, but I fear Secretary Xi is calling all the shots capriciously, so that business has become very unpredictable in the PRC.
can u put link to that interview with damodaran?
This was an interview with Scott Galloway (The Prof G show).
I am Malaysian, Tencent is my third largest stocks ( just smaller than Costco and Brk-b) in my family portfolio…I might be wrong, but let calculate the Odds- how much I can lose and win in next 5 years…( say drop to HKD 200 and shoot to hkd 1,000…the odds is risking lost 1 for gaining 8…people may laughling me how can tencent shoot to hkd 1,000, but that means at that time ,market cap still less than usd 2 trillion….the most important for lay man like me is using simple Kelly criterion….as long as never Game Over in this game when you hit by worse case scenario. Is okay…
My 3rd largest too!
Recent q4 earnings Martin Lau mentioned Tencent domestic games ARPU (average revenue per user) is actually at very low end compared to industry peers.
So regulation on spending is not their concern, since it wont hurt the company at all. And there is more room for domestic game revenue expansion (since they are at the low end ARPU)👌🏻
Can I get the link to Howard’s video? Thank you!
maybe im a noob but isn't tencent like a huge global company with revenues that are not exclusive to china? does this not mean that they can still do ok globally? Im not invested in tencent but just a thought.
Not to mention WeChat is integral to Chinese society. I think Tencent's success isnt based entirely on gaming.
they also have a huge portfolio of equity investments in various companies
The fact they own half of fortnite that is going to be worth maybe a trillion dollars in 10 years its worth buying just for that alone. Microsoft is inferior to tencent today. But tencent is trading much lower. This is an investment that will make you rich within 10 years if you hold it long term. The mobile gaming will be their big revenue driver long term. They are going to make so much money on all their games going forward that everything else they have is just a bonus.
Technically it is, but when you look at their revenue breakdown, it's still largely deriving profits from China
As long as this company is on the pink sheets they are uninvestable. Really weird that a company this size would do that.
Tencent stock has gone from about HK$270 earlier this year to HK$382 today (Jun 17, 2024). Of course Adam Khoo is quietly hoping everyone will forget about this episode.
The Chinese are long term thinkers, by the person in absolute power may not be.
I cannot help but wonder about Howard Mark's outlook on China. If you look at China's demographics, they are staring down the barrel of a gun, no small thanks to the one-child policy.
What about his outlook? He seems very interested in the debt market in China rn
Marks mentions growth for the US will be limited in the future, whereas China still has plenty of room to grow. I guess he is referring to GDP growth. Birth rate is low all over Eastern Asia, especially China now that women want careers. Individual companies could of course still grow fast which is more relevant for both stocks and bonds
Its awkward. Tencent I am in.
Damodaran said he would buy Tencent, but he did not say he actually bought Tencent. Unless you have another source, i do not believe he holds the shares. Chinese shares are not investable for me currently. Until maybe XJP steps down.
saw an article where Tencent says they may cede some of there fintech to Chinese banks, kind of sucks because this makes a larger portion of potential future growth.
Fake news bot
Wat is ten cehnt, not ten cent meh
Prof >>>>>> adam khoo any day
Adam who?😂😂
Adam Khoo know very little about
The Chinese take a view on the economy that is very much the same as an industrialist - theres not much concern for speculations like real estate and market valuations and instead their focus is on industrial production and climbing the technology ladder.
The Chinese government sets very clear objectives for itself and outlines its long term policy in multi-year plans. Investors should be mindful of and ideally align themselves with this industrial mindset when investing in China.
I'm very confident in China economy and hence its stock market will be bullish in the very near future within 3 years can see very good run.
Excellent information on TCEHY
Okay buying more Tencent shares nao!
Adam Who vs The Dean of Valuations
"for chinese companies, you're not a shareholder, you're a capital provider". Well, if a company is not paying a dividend and it's not buying back shares, that's what an investor is. I reject the notion that chinese companies behave any different from anywhere else, lots of "investors" are ready to buy in US companies with negative cash flow issuing shares and diluting them like crazy, then turn around reject China on ideological bases.
Seemingly, Chinese companies are paying a divv and buying back shares. So are they now playing the capital game as well?
@@taychikeng Yes, that's my point, they're not playing any different a game
going to the moon... just don't end up not coming back to home 😂
Bro's delivery is solid! 💪
Chi Keng, the opportunity cost impacts you more than Adam Khoo. Adam is a millionaire. Your gains at 65 is less by not following the liquidity flow. Lossing time horizon.
Adam is a famous movtivational speaker
I dunno if anyone is willing to b at the mercy of Beijing flip Flop policies on online game companies. Moderator can reason extensively but follow the money. The money is flowing right now out of China market. By exiting, Adam had cut his pain - ten cent was to him a sunk cost. AI stocks anyone?