In 2001, Cape Town-based Naspers invested $32 million in Tencent, an investment that has grown to more than $80 billion today.
Tencent – owner of the messaging app WeChat – is the most valuable company in China.
Today Naspers owns 34% of Tencent, the fourth largest internet company in the world after Amazon, Google and Facebook.
Short discussed Tencent and what it does as well as the truth-is-stranger-than-fiction story behind what must be the best investment ever.
Listen to the wild story in the audio below (and/or scroll down for quotes from it).
The face of Tencent is Pony Ma. He’s been involved since the start. He’s reserved and not a celebrity.— Philip Short
In the mid-2000s Tencent went into online gaming.— Philip Short
WeChat only came along in 2012.— Philip Short
Tencent gets people to play their addictive games for free for up to one or two stages. From there on you have to pay.— Philip Short
Tencent owns an Uber-like business that pushed Uber out of China.— Philip Short
Tencent’s online advertising is growing at 60% per year.— Philip Short
Tencent has just started monetising mobile payments.— Philip Short
We still see ample opportunities in Naspers.— Philip Short
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