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Game over, Tencent (i.e. Naspers)? No, it remains a profoundly good longterm buy

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.

The Money Show’s Bruce Whitfield interviewed Strydom.

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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This article first appeared on 702 : Game over, Tencent (i.e. Naspers)? No, it remains a profoundly good longterm buy


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