These are just a couple of examples. The craziest part is just how quickly China went “out with the old, in with the new.” Our American “legacy” businesses (like the phone company) had no legacy in China... So as soon as a better way to communicate came along (like WeChat), the Chinese discarded the old systems without any sentimental attachment. Nobody is talking about China’s technological revolution... But it has already completely transformed the country’s major cities. The companies that are the winners in this revolution are already clear... We don’t have to guess who will win... They’re already right here in front of us. (For example, WeChat is already the winner in its area. It will be incredibly tough for someone to come in and unseat WeChat. And there are near monopolies like WeChat in other areas as well.) Tencent – WeChat’s owner – is one of the obvious winners in China’s technological revolution. And it’s a leader in “The New China”... (“The New China” generally means any business that isn’t associated with China’s major state-owned enterprises, like banking, energy, and telecom.) The battle in China is for people’s screen time... And Tencent controls their screen time even better than Facebook or anything else does in America. Tencent is “sticky,” as the tech gurus say. Users can’t stop using its products.
In addition to owning WeChat, Tencent is also the leader in mobile gaming in China. It’s actually not just China’s mobile-gaming leader, it is the world’s leader based on gaming revenues. It’s ahead of Apple, Microsoft, Sony, and the rest. And its market share is increasing, fast. Whether you’re hailing a taxi, paying your bills, chatting with friends, or playing games online, you never have to leave Tencent’s world. Most Americans have never even heard of Tencent. But they will. I predict Tencent will be the world’s largest company within the next five years. You want to be a part of it. The battle in China is for people’s screen time... And Tencent controls their screen time even better than Facebook or anything else does in America. Editors note: True Wealth subscribers are up nearly 100% since Steve Sjuggerud and his research team recommended buying shares of Tencent less than a year ago... or more than five times the S&P 500 broad-market index return. If you’d like to take control of your investing and get recommendations each month about the best stocks to buy, learn more about joining True Wealth by clicking here .
American Consequences 59
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