Tencent's Moat

Tomorrow Tencent report 2Q numbers, probably the most significant set of numbers for the JSE even though they don't even trade here. The numbers are out at around lunchtime. In Jozi that will set the tone for Naspers and by extension our market. I found this very interesting slide show talking about why Tencent is such an amazing business, Tencent's Wide Moat. If you don't fully understand why we think Tencent and Naspers are such great businesses this slide should help.



China might not be as rich as the US on a GDP per capita basis but they have 4 times the population who are very quickly entering the global middle class. Think disposable income to spend. With that in mind, do you think a social network with 1 billion users should be worth more in the US or in China?

"Average user spends 66 minutes a day on WeChat (more than Facebook and Instagram combined)... But a third of WeChat's users spend a whopping 4 hours a day or more on the app!"

If you are wondering how someone can spend 4 hours of their day, around 25% of their waking hours on WeChat, here is an example.