Christine Tan Naspers Ltd. NPSND-5 PAST TOP PICK Feb 02, 2017

A South African company, Tech media. A fascinating business model. You could think of them almost as a private equity firm. 80% of their NAV and almost 100% of their market cap and is basically reflected in their stake in Tencent (TCEHY-5). This is her way of investing in Tencent, with a free option on all their other businesses.

This is a company that was set in Africa, but you can think of it as a very big tech venture capital firm. An inexpensive way to own Tencent (TCEHY-5). They own 33% of that, as well as 29% of Mail.ru in Russia. Dividend yield of 0.2%. (Analysts’ price target is ZAR3,710.00.)

You are effectively getting a cheaper way to buy Tencent (TCEHY-5) along with a bunch of other businesses that you are effectively getting for free. The trouble with the other businesses is that they are insignificant on a relative basis compared to Tencent. He would rather own the key driver of his wealth as opposed to a more diluted vehicle. He would rather just buy Tencent directly.

He looked at this in the past, but he thinks there are better ways to get emerging market exposure. Alternatively, you could pick an ETF or conglomerate. He would not be a buyer.