"China’s Buffett" Buys More Tencent

Duong Yongping, known for his long-term investment approach and large holdings in Alibaba, has notably increased his stake in Tencent. Despite this, he has consistently praised $TENCENT (00700.HK)$ over $BABA-SW (09988.HK)$ in forums.

Duong has mentioned on social media that he has bought shares in the company, though he admits that the actual holding size is relatively low. In January this year, he stated that among companies that will still be around in ten years, Apple, $Kweichow Moutai (600519.SH)$ , and Tencent are likely to remain.

A few days ago, Duong expressed some “regret” online, noting: “There are no options for Tencent on U.S. stocks.” He highlighted the lack of option products for Tencent ADRs, which prevents him from using options strategies for a company he remains bullish on.

Looking back, in August 2022, as Tencent's stock continued to fall, Duong purchased at least 100,000 shares of Tencent ADR when the price was around $37. In December 2023, he reported buying 200,000 more shares at approximately $41 per ADR and indicated he would continue buying.

In December 2023, he also mentioned: “Tencent doesn’t offer put options, which makes it much harder to manage. The large South African shareholder will likely continue reducing its stake for a long time. It would be great if we could sell some puts.”

On August 15 this year, after a six-month hiatus, Duong posted again about his actions: “I just bought some Tencent. Not having puts to sell is really troublesome; I revised my orders several times and still couldn’t buy even 10,000 shares each time.”

Despite the challenges, he has resumed buying Tencent.