Tencent

I own shares of Tencent and think it looks attractive at $80. At the moment, Tencent is one of the best companies in the world. An average user of Wechat spends more time on the app than an avg. user of Facebook, Snapchat, Twitter, Spotify, etc. combined. The Company monetizes through Value Added Services which in large part includes games and ads. It has very high returns on capital and essentially controls distribution of apps and games in China. Most of excess capital goes towards investments, which have performed incredibly well over the past 5 yrs ~20% pa. Gaming, social media and cloud all have long runways for growth and China's GDP is still much lower than US GDP. China also has some tailwind of users becoming more digital (though less than the US) though does have some demographic headwinds with an aging population. 

In terms of competition, Tencent somewhat competes with BABA in cloud and ecommerce, Bytedance in advertising, and has other real competition in games. But really, Tencent has stronghold in the Chinese ecosystem and it seems incredibly tough for another app or company to displace it. Really, we would need to imagine FB's AR investments would have to take off and the metaverse to come to fruition. And even if that's the case, it'd be hard to imagine Tencent didn't have a place in that world. In gaming, Tencent owns a significant portion of game studios, and has several investments in "competitors" like Sea Limited, Epic Games, Riot Games, etc. 

Tencent trades at $770B market cap and generated 20B of net income last year and has been growing 30% pa. It also has ~$200B of investments. With the tailwinds of China GDP, less stigma over spending on games, growth of ecommerce and digital payments, the movement towards cloud, Tencent clearly has a bright future. At 22x 21E ex investments, Tencent seems like incredible value and I can easily see it being worth 4x in a decade. 

One of the risks is China's declining population which should eventually drag on China's GDP. But China is still starting from a lower base and I have to think China's GDP outpaces US GDP given China should have 2-3x the population of the US in 20 yrs. 

As for CCP risk, I would think China wants its technology companies to thrive.