NPSNY
🇨🇳 Naspers holds a 32% stake in Tencent Holdings, a major Chinese tech company.
💰 The company trades at a significant discount relative to its Tencent holdings.
🌐 Naspers has other internet investments, offering additional value.
⏳ Eliminating the discount requires patience, but the potential upside is substantial.
@emeritoquintana:
“We had an investment in Tencent Holdings, which is like the super Facebook of China, the all-in-one application in China that is already embedded in the daily life of the entire country, and we changed it for Naspers, which is ultimately a company that has 32% of Tencent Holdings and, due to a series of vicissitudes, trades at a very important discount on Tencent Holdings. It is a company that is in South Africa, which has 32% of Tencent Holdings and has a lot of other investments in internet companies, and thanks to its investment in Tencent Holdings in 2001, one of the best investments there is, not only for buying it at that time but for maintaining it until now, the company has become so gigantic, and its participation in Tencent Holdings is worth so much that it already weighs, it came to weigh 25% of the South African index. So, of course, people, the funds, cannot have 25% in a single company because they have diversification limits. There have been many forced sales due to that anomaly in the market, for other reasons, not for tax issues, because the structure they have is tax-free, and it has been demonstrated a bit when they sold a part. So, if we value Tencent Holdings and value all the things that simply cook companies that have Naspers, like Delivery Hero and others, the value is 75% higher than the current one. What happens is that you have to have more patience than the others because it is not known how the discount will be eliminated, but for then, if we change Tencent Holdings for Naspers, the thesis has not changed, and we simply achieve a higher rate of return.”
Watch the exact part of the video where Emerito talks about Naspers here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Naspers (NPSNY) at the following link. NPSNY stock.
