Rob Vinall on Prosus (PRX), Tencent, Russia & China

TL;DR

South African investment company Process has held onto its 29% stake in Tencent, a Chinese company, which is now worth €115 billion. The investor highlights the stark differences between the development and potential of China and Russia, dismissing comparisons between the two.

Transcript

on chinese adrs and process in particular  just how has your point of view changed   with the developments over the last  couple of months yeah i mean i don't   think there has been any developments  over the last couple of months i mean   yeah so process is our investment it's uh it's a  south african uh company uh actually moved to the   Netherla... Read More

Key Insights

• 🇨🇫 Process, a South African company, has maintained its 29% stake in Tencent despite market fluctuations.
• ❓ Tencent's stake alone is valued at €115 billion, contributing to Process's market capitalization of €70 billion.
• 🌥️ China's rapid development and progression towards becoming the largest economy differentiate it from Russia's stagnant growth.
• 🇨🇳 The investor dismisses comparisons between China and Russia, highlighting significant disparities in economic potential and leadership.
• 🗯️ Increased nervosity about ownership rights in China might be contributing to market concerns and share price declines.
• 👨‍💼 The investor draws a distinction between Russian oligarchs who acquired wealth through state asset theft and global business leaders like Jeff Bezos.
• 👨‍💼 The investor emphasizes the remarkable development of China, highlighting the movement of millions from poverty to urban areas and the creation of successful businesses.

Questions & Answers

Q: Has Process experienced any changes in its perspective on Chinese ADRs (American Depositary Receipts) in the past few months?

The investor states that there have been no recent developments concerning the company's viewpoint on Chinese ADRs. Process has maintained its investment in Tencent consistently.

Q: What is the current value of Process's stake in Tencent?

The investor mentions that the stake in Tencent is worth approximately €115 billion, highlighting the significant value it holds for Process.

Q: What are the concerns about ownership rights in China that might affect Process's investment?

The investor mentions that there is increased nervousness regarding the robustness of ownership rights in China, which could impact the value and stability of investments like Tencent.

Q: How does the investor differentiate China and Russia?

The investor emphasizes that China and Russia are fundamentally different. China has experienced remarkable progress, uplifted millions from poverty, and fostered significant economic development, while Russia is viewed as a mafia state, lacking positive growth for its people.

Summary & Key Takeaways

• Process, a South African company, made a significant investment in Tencent 20 years ago, which is now valued at €115 billion.

• Process has never sold any of its shares in Tencent, remaining a major stakeholder in the company.

• The investor emphasizes the disparities between the progress and growth in China compared to Russia, noting China's rapid development and potential.