Tencent Valuation - Why and How I bought It
Another random quick decision I recently buy was Tencent based on some comments on Twitter.
I know Tencent but not too much. Previously I have been impressed by the investments that they did, including in SEA Group. Someone on Twitter shared their biggest portfolio and I was impressed and just decided to buy it.
Tencent's stock portfolio is up 65% in 2020.— Warbucks (@therealjunto) June 16, 2020
Top 25 holdings exceed $100 billion.
Holy shit...$JD $TSLA $SE $PDD $SNAP $SPOT $ATVI $NIO $WUBA $HUYA $DOYU $VIPS $BILI https://t.co/mF8BXjnYiI pic.twitter.com/4UbGdfjOvH
There a few companies that I loved
- Shopee, which almost 2x my investment in a few months
- Tesla, I made almost 3x and sold. Seeing that they have the stock impressed me. Can understand why it is so successful in China now too
- Bilibili, I learned about this company in one of my screeners of growth with lots of short interests. The registration was a hassle and I didn't do it. Anyway, I couldn't figure its growth potential yet so I didn't buy them
- Activision, I loved Starcraft as a viewer in the past. Blizzard is so patient in building their brand and product. I cannot wait for the Diablo mobile game to come too. I think that will be a money-maker again.
There are other companies I know too, like Spotify, Nio (not hopeful of them though), JD (Amazon in China). Nevertheless,
Growth Potential of Tencent
- Honestly speaking, I am not sure how much growth Tencent can have. I solely bought on their investment ability. All the stocks I mentioned can easily 2x if executed right
- In terms of pricing, Tencent didn't grow and only just recover to pre virus status. I think it is underrated compared to the holdings it has.
Steps on how I got Tencent in Interactive Broker:
- I tried and finally learned about OTC / Pink Sheet stock exchange. I tried to buy $TCHY in IBKR and it failed. Read that you can only close a position in IBKR US.
- So, I quickly update my permission to include "Hong Kong"
- I tried again and it started to wait for the market to open
- The market opening is interesting from 9:30 to 4 pm.
- I tried to put it yesterday close but failed. Finally, I put nearer to bid at 3:50 pm to get it.
I wonder how long the stock market will continue to grow.
My bear put options attempts have been failing badly so I am thinking to stop that. I started with the purpose of learning to short and avoid a crash but this FOMO market is just not worth trying. (GSX is something I think fishy as per Muddy Water Research, but luckily I sold my put early as it has been short squeeze frequently).
Sky Hoon. Read Full Bio
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He has been trading since 2008. He started this blog to share the journey about option trading. He dabbled in stocks, bitcoin, ethereum (in Celsius Network), ETF (lazy Dollar Cost Averaging) and also built websites for fun. He used this as a platform to share my experiences and mistakes in trading, especially options which I just picked up.