In January 2018 Naspers-owned (31%) Tencent was one of the world’s five largest companies.
It’s no longer even in the top 10 after losing R3.2 trillion (US$220 billion) in value so far this year, more than any other company in the world.
Nevertheless, says Momentum Securities Portfolio Manager Francois Strydom, Tencent is fundamentally a good long-term buy.
Listen to the interview in the audio below (and/or scroll down for quotes from it).
The gaming component… is definitely one of the major factors for its decline… Competition and regulatory concerns…. and a broad-based Chinese tech selloff…— Francois Strydom, Momentum Securities
We still view it as a quality company… it’s not in question…— Francois Strydom, Momentum Securities
Fundamentally… we prefer the Tencent route rather than the Naspers route…— Francois Strydom, Momentum Securities
There is a bit of a short-term risk… but it’s ever more looking attractive… we look at the fundamentals… there’s value there…— Francois Strydom, Momentum Securities
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