Chinese Stock: Tencent Holdings Ltd

• Monopoly

• Stable: Having diversified streams of revenue and different opportunities for growth

• Kind of like part Facebook, part Google, part Tesla, part EA sports

Mega conglomerate:

• Music: Tencent Music Entertainment - 12 million paying subscribers (about the same as Spotify)

• Gaming: Esports - Fortnight, League of Legends, Call of Duty

• Social Media: WeChat - 1 billion users (messaging, online banking, stock trading, buy movie tickets, DV (Uber of China))

• Banking

• Insurance

• Movie production

• Virtual reality

• Ride sharing

• Real estate

• Space technology

Do they have too much debt?

• Debt to equity ratio: anything below 0.70 is okay

• Current ratio: 1.06 (above 1.50 is okay) - being close to 1 means there is not much margin of safety

Are they growing?

• Expecting big growth from gaming purchases but drop in advertising revenue

Are they well managed?

• Dividend: 0.27%