 Surprise. I'm live. Okay. Before you click away. Okay. This is definitely Sean and Chloe's session Don't get me wrong. Don't click away. Okay. So what is going to happen is that? Today is a bit special because I am instead of having them here live, right? We are having them Watching together with us. Okay. Let me click away the banner first So we are having them watching together with us with us and I'm going to be streaming for you a Prerecorded video of them dissecting the stock 10 cent. Okay, and then at the back part of it They are going to be sharing with you three ways where you can actually build your investment portfolio So be excited because I'm super excited. So let me just start the stream right away and At the end of the session, I will be teaching you how to get a How to get assess to Chloe's etm workshop. Okay, so let's do this I do a bit more popular for foreigners, but I went to check the soap soap So go so go so go so go you Okay, so So go so crazy is you look at the color. It's like Google. Ah, right now And the thing is this they already overtake by two, you know, I went to check I want to check they really overtake by two since about 10 years ago. It's just that we don't know Many will say they are revenue. They are growth. They are user base, right? Okay, so it's something amazing imagine you own the Google of China imagine you own EA sports or Okay, they they call they call Tencent's more like a EA sports now, and you know, the whole entire US. By the way, you thought that Tencent is only in China I Yeah, yeah, okay They actually own there a lot of ease for things company and in US, right? They watch sports ma the first one is NFL, which is national football league The second is e-sports, which a lot actually is owned by Tencent so Tencent's big customers base It's not just in China Also own like all these are not on antivirus and maybe okay They have one more thing called cloud or the cloud I I don't know US reason because they also have JD JD. They own 20% So so a lot of the revenue comes from JD also, but JD losing money. But anyway, it's like the Amazon or China Okay, the biggest competitor of course is Alibaba, but you must know one They they are only they one of their department five Alibaba the rest Okay, Alibaba also come and fight back. Then they also own what else Like yahoo a yahoo. Nobody wants ready. All right. Now if you read yahoo news and stuff like that, right? It is like they are QQ. I was trying to figure out what's QQ But all the all the all the all the all the like financials sites and everything like they actually go to QQ to read Okay, they also own Uber. You're not Uber, right? We check a guess what they also own like for example grab pay They own like it's a bit like PayPal guys. No kidding and because let's say you're gonna do e-commerce, right? You know e-commerce Usually you will set up a paytelling that people can pay through that in China It will be WeChat Pay WeChat Pay or now I think Alipay is getting a bit more famous catching up. Alipay is catching up Okay, then the next one ah, if this one now your guess what they have a entertainment They have they have a Tencent music and stuff like that. And guess what is the equivalent your guess? What is it equivalent? Netflix Yeah, actually they didn't mention that it's like Netflix. They mentioned it's a bit more like Spotify la The music is much bigger Hey, by the way, they are they are they are user based in Tencent music is more than 45 In case you all think that hey, no la they only like one one what they are one department can crush a lot of things, you know Okay, and also Social media, of course, they are they are user about similar to Facebook about a few billion and then finally like a WhatsApp or what they call that line if you can see you buy one stop you buy all of this Now it's almost like a ETF and they are diversifying so fast and the cool thing about them is this ah because Why I say this company is super strong actually you think about it right one company in us also want to be like them Everything also paokaliao everything. Oh, sorry. Is it an international account everything? They also want to do right which company on the screen right here on us right everything. You also want to do one You'll make a guess In fact, they changed their name already. They changed their name to represent that everything Alphabet is don't play play. All right. Yes. It's alphabet. It's actually Google. I thought but not Amazon Amazon also everything want to do but they are not as aggressive as Google So Google also want to fight in a lot of areas but Google have not been successful like they try to fight They had Google plus they try to fight like Facebook a bit. I cannot win They try to fight here try like that some some things win a bit something sweet lose a bit But then send when they go in now what they crush one I have not seen Tencent have very bad products They have not have a lot of shit products. This is how powerful they are So if they are coming after you they have a high chance They will win because the ecosystem is so strong and a lot of one billion people using Tencent ready So so it's super powerful. Okay, so I think there are some questions, right? Nancy is asking and I think Aaron is also asking then send should you buy in US or China stock exchange No, you asked for Hong Kong stock exchange, right now Actually, you can buy in Hong Kong stock exchange for one reason my only one reason is this that if next time They give dividends are then you can you don't get tax so much because when you actually buy in US It is called ADR. Okay, then when when when they give dividends Donald Trump or whoever the next guy is or maybe Kanye West Kanye West running for president I don't know is he so so a single one to be president. They will take 30% of our Dividends, but I think right now isn't there isn't much chance. They will actually do dividends play reason being They are still expanding aggressively. Hey, but this this Tencent holding up. Wow. When I see already I don't know about you guys are your saliva dripping or not you guys Well, they all did your thing is powerful. This is company Sounds like a cheap company. I told you it's not they and Tencent from everyone in the world They make a lot of money. I can it's like everybody's they they say la people in China's It's all about you John already. Now they understand from each China people every single day Imagine every day you own Tencent every second Tencent is going into your bank account. Sounds very little But it's coming in dripping dripping dripping. Yeah, yeah, what the fall? Slaver dream ah tsunami tsunami. Okay, okay, steady. Yeah. Okay. Sorry. Sorry Chloe. I hand it back to you I just want to share the whole picture by by the way, most of these is presented by Chloe when I saw the slides I I wanted to let because a lot of us don't know what maybe You you all the companies we may not know not because we're not in China but putting in perspective Yeah, so so like like I think the amazing part about this company is even though it has really been For many area, but it continue to innovate and continue to improve and that's why it's only getting stronger So for example, one of the initiative that they are doing I think they just launch it like like two years ago, which is called a mini program I'm not sure what some of you may be the Tencent users, right? So once you start to have these mini programs actually for my for my parents Use Tencent a lot to connect with their relatives So I realised that nowadays every day they say at home they play the mini program, which can be game Your parents play the mini program. Yeah, like they play Mahjong on Tencent every single day You thought you thought I can give you some effect Yeah And apart from I mean like Mahjong is one of the game that So because as an app who really want to retain people's attention The more time that the people use it, the more data that you gather and it's definitely more valuable to the company At the same time, it has many other mini programs that you can directly shop through Tencent So you don't need to, you can directly shop through WeChat You don't need to leave the app And it's like really giving them so much data point and each transaction that they actually make like through their mini program They are actually taking a cut from all these merchants So that's why Mahjong sound effect Yeah, really Okay, by the way, this is one thing amazing about Tencent If you all realise, right, most of the app right, most of the social media app that I used to talk about right There's a certain target group that are targeting For example, if you are a boomer, you want to use a boomer, I don't know you use what app But if let's say you use a certain app, Facebook, Facebook, they say or slightly Not generation Z, strawberry generation or generation Z, they don't want to use Facebook Because their parents are on it, they will use Instagram, then they use TikTok TikTok is also a China one, but it's not under Tencent But WeChat, who cares, you are young, everything, they also They actually capture everyone, you know This is something very amazing, but this is how they are able to expect amazing And even though like for example Even if the youngsters may not be using WeChat actively, right They are also using the other app called QQ And QQ are very popular among youngsters So they literally really capture the whole population of China inside their home Really amazing So let's talk about, delve into different key sectors So that all these information can be actually found in an annual report But I just want to highlight certain important portions for you to consider Whether you want to understand this company a lot better before investing in this company So if you see like the daily messages which is mainly through WeChat It's up like 15% year on year I think it's like really amazing, it just shows that Not only it has a lot of people, like more than 1.2 billion people using it The time usage is also increasing It's definitely giving a lot of content to Tencent itself And apart from that, now since recently there's a coronavirus issue They are also developing other things like Zoom But they call it QQ, I think it's like QQ Zoom or whatever So these one, they have these full plus home groups that have more than 120 million users So they are really facilitating a lot of different things like Remember the mini-programs that I just mentioned Can you see that in 2019 alone The transaction generated through mini-program is exiting more than 800 billion I see the Zoom very funny I can see the Banana Vesta Kenlima driving and listening to us Drive safe are you? So you can see technology is so powerful People drive can still be connected So you can see that nowadays we are all connected In this particular WeChat or Tencent right They are the technology in China They are really connecting everyone So the stickiness is too powerful already It's a business I cannot imagine going down It's even corona proof Later I'm going to show you data It's corona proof It's not infected at all There's also other sectors that they are focusing on as a company So they are doing a lot of games And those games, these mobile games are not only popular in China They are in fact gaining more popularity overseas as well I'm not sure some of you maybe played these games before Like do you play PUBG? Sean Sorry I spent my time doing very very productive things I play things like Crash Royale or Brawl stuff It's kind of a violent game I play QQ1 By the way, the games that I play are also owned by them It's under Supercells which actually Tencent is one of the big shareholders So a lot of games that you play are linked back to Tencent I remember PUBG It was actually introduced by my sister's friend to me So she was staying over in our house Our age gap is like 10 years old So even like 10 years below me So your sister is about 30 plus now is it? No la I'm just kidding My sister is like in her early 20s So her friends are also in her early 20s So they are really playing PUBG and these kinds of games made by Tencent And I just want to show you that growth rate That international games that Tencent is conquering the market It's like 23% of the online game revenue International games revenue are double year on year Doubling year on year Can you see how aggressive is the market share being overtaken by Tencent And then at the end of the 2019 Five out of top ten most popular smartphone games are actually developed by Tencent So if you are a smartphone game user You can type down some of the names here You never know actually you go and buy later right Actually it belongs to Tencent So whenever you play Whenever you decide to buy something You are contributing to revenue of Tencent as well Yeah even like Activision Some of their competitors Tencent also one of the big investors It's like crazy you can't avoid them But this is how beautiful Tencent is Their whole entire management They are super open to investing in their competitors Say we are from you It's okay if you win us we also win So their mindset is like a bit unheard of But I think nowadays the world is getting like that But Tencent is not the first field that really go all out Try to kill themselves Invest in their competitors and things like that Amazing you know Some question they are asking is They are concerned about the Hong Kong stock exchange Given the political situation Now I don't think anything is going to change Okay anyway you all must understand something Even if let's say the stocks in the stock exchange Let's say the stock exchange collapse for any reason So far I've never unheard of I mean stock market crash But the exchange let's say no longer Can actually Okay you must understand something What is the exchange? The exchange is like an eBay Do you all use eBay or auction sites? If you use eBay or auction sites Please type auction or please type eBay The stock exchange is just a site for you to buy and sell That's all If the exchange gone So the stock exchange gone to right It's like basically eBay gone But can you still So let's say the laptop that you buy from eBay Is this still a laptop? The answer is yes But can you go back to the eBay to sell? The answer is no A bit more difficult But as a listed company When the stock exchange close down They will go and put in other stock exchange So don't need to worry too much They will just facilitate the selling And buying our stocks from somewhere else But you will be a shareholder You are a legit shareholder of Tencent The best is Actually if the stock exchange close down Even better Because Warren Buffett said this He said that he wants to buy stocks right That even if the exchange The stock market close for the next 10 years He also don't have In fact, no exchange Maybe you will keep longer You will make more money So this is the thing Who's up to share screen? Rihara Are you able to stop your share screen? Yes Tencent do not have options in US also Correct I personally think it's quite safe No need to worry too much about the exchange Hopefully Because it is listed there The price drop Then you can go in So Yeah Rihara Are you able to stop at Tencent? Yeah So some of you may be wondering Like hey so how are you going to buy From Hong Kong stock exchange I think one way is If you use interactive broker You can actually use it To buy overseas exchange Like Hong Kong Alternatively you can also use local broker Where they actually Get the shares for you on behalf That is also possible Yeah Exclusive If you go and use like Let's say you are from Singapore, from Malaysia You use your local broker Go and buy Hong Kong stocks I can tell it's very expensive The brokerage is more expensive And every month you have to pay some fee So you can use sexo capital Or you can use an interactive broker TD, AmeriCade, trade or swing You can't really do that Yep TD you can't buy Hong Kong shares You can only buy US shares Alright That is for the online game just now So another sector that they are really Putting a lot of investment on And they are just going to grow even bigger It's actually fintech So like what Sean mentioned earlier There is like this payment Payment function that can send Actually does transaction and accept And transfer money and everything like This is their key focus And in fact they are also making Pretty decent income from these fintechs So in the fourth quarter of 2019 They estimate every day One billion transaction On their commercial platform Okay so it's like recheck pay Or you know like now Chinese New Year right I think Singapore is also picking up the trend Instead of really giving unbow You are to pay now Pay lah right So what Qiwa code yeah yeah Qiwa code In China it's directly sent to your Wallet inside recheck You don't even need to go through everything And they package it so nice that It's already like unbow So it's like really amazing And they started it a few years ago And Singapore only started it like This year or last year But they started way way way longer And it's really like China is really growing much faster I think compared to the rest of the world In terms of all these digitalization Right so and they are also coming up With another platform they are fighting With Alibaba okay So this platform is called the Taipung So with the Taipung Like people can actually invest Someone mentioned cannot already Now they must do KYC To do the unbow Because maybe of a Anti-money laundering Okay okay actually you're right So you see Tencent right Because they are in this space They also got a lot of regulation one But so far so good So far so good Sorry continue Chloe I think I'm muted Yeah yeah I'm muted already I'm muted already Yeah yeah okay Can hear So yeah so regulation Is definitely one of the risks Which we will talk about it More doing later on So another thing that they are coming up Is this Li Taitung Where they are really trying to fight With another service that Alibaba provides Which is investing in some short term Funds or short term like bonds And all this And you know like doing micro loans And everything that can help them To make much more interest income And everything so And with the app being so predominant To every user right It's so easy to actually spark Your own small investment using Li Taitung as well So yeah that's the advantage that they're having And another thing which is Sean also mentioned earlier They are also going Going very big in cloud Cloud and other business services So their cloud service actually Exceed like 17 billion in 2019 And they are constantly Outgrowing the market And this is something that As a shareholder I'm very pleased to see Because we know that the cloud is the future Okay if you do agree that cloud It's really like the future Please type cloud And actually Baba and Tencent They are also going very heavy In this technology as well To see who can be the leader So I think so far it's still Baba being the leader But Tencent is also doing a lot To patch up And they are also adopting A lot of cloud based solutions For long term to facilitate Remote working, remote interaction So that to suit our Habit change, potential habit change Due to Covid-19 situations as well Oh they mentioned this question I think it's very interesting Is it very dangerous So Aaron good question Is it very dangerous As Tencent has a lot of customers in US Given the relationship of US And China Okay very interestingly How Tencent actually Have customers in China Is over the internet Is not like direct Over like a cross border transaction So there are a lot of customers In China Sorry in US right Is eSports E-Sports actually I think Through internet really So this is something It's not like Huawei Huawei you have to deliver the phone And you need certain parts E-Sports wise I don't think It will be affected And most of the way They are actually making money Also is through investments Through other like I would say E-Sports companies So I mean Unless US block the investments But so far there isn't any indication of that I think it's a very good question actually But don't see any problem US government is not the main issue It's the Chinese government that is the issue Because whenever a company is becoming So powerful It affects the whole entire nation Maybe the government will start to be Like watching you Everything they will do Like Facebook like every time Ghana call for Go and meet the senators And have to go and talk to the congress And say what happened to All your data protection and stuff like that So far so good okay Yup so now let's take a look at Like how much impact Has COVID actually brought To Tencent this business Okay Let's do a comparison Between last year And this year Okay from there we can This quarter one only right This quarter one correct So quarter two I think is in August August they will be announcing Hopefully Hopefully they disappoint the market And the price goes down Okay but I got a strong feeling it won Okay but let's see So yeah you can see That the percentage of Like increment Okay from like Let's talk about VAS Which is value added services Including online gaming Including subscription like Remember it also has this Spotify portion It also kind of has this Next portion like So there's a lot of subscription For their video content For their music content So these Music content Before I ask you to put Yeah asking me to actually make Make some effect Okay later I'll make some Some sound effect Okay continue talking I will make Yup so the revenue Continue to increase And for FinTech And business services Like payment Like investment Like cloud right Also in actually Like the increase is really Huge More than Of course Yeah 20% jump Then online advertising Because Tencent they actually Like using WeChat And using a lot of different websites That they have like Advertisers can go and advertise And they also continue to Make more money using advertisement As well So the others I think you can ignore But the main three Why not Others are very small 2% Even the others are small Small Oh yeah one thing That's very powerful About Tencent right Whenever they see Certain places making more money They pour more focus into it So that they are known To be doing that So they do a review Of which one making more money Boom then the margin Is higher they will shift into it So they are very good At making money They are very good At making copying people's ideas But they really They really do very well So whether you like it Don't like it They are very powerful They improve on their People's idea actually And that's how they Become stronger as well Yeah and If you look at the next thing Let's look at Morningstar The revenue growth Is tremendous over the years APS also jump Like don't know how many times Since they Since they Since 2010 And free cash flow is always Very strong So it's a very fast reach And they always Canim drive your car Canim canim You don't look at the screen Later you look I see him driving And looking at the screen Later I'll make the sound effect For you Don't know it So for Tencent They do pay out dividend But it's very minimal amount So you can see The payout ratio is About 10% So they Still retain 90% of their earnings Really for expansion To continue to do R&D And business expansion In terms of the net margin Is super healthy In their 25% range And interest coverage Is also like Many many times So this company Is definitely Like you don't really Need to worry too much That it's having a lot Of debt In fact The income is more Than enough to cover 15 years of interest Right So one thing I want to share Which is very interesting Is because In the annual report They will also highlight Exactly when They will actually Do stocks buy back And from there You can actually see How What is the price That the company Think It's a reasonable price To acquire back The shares Some of them So this is The price range About 320 To 350 In between Last year So this is Return in the annual report So if you look at this And if you see that If the stock price Managed to drop To this range Actually You are basically buying You're paying the same price As the company Confidence level Because the company Must be confident To buy at this price They believe that The stock price Will continue to grow And that's why They are willing to Invest in this amount So if you are Able to cash This opportunity Then it's fantastic So that's You're talking about The price down Is 300 plus No 200 plus already Then you talk about Okay In March It dropped to Drop to 300 plus And that's when They want you to march They want you to march Now Now it's They want you to march The police wear Shots But I just want to share It's a very good Habit To also keep track Of the company's You know Annual report And see What is the price range That they are Targeting They want to support The level Yeah, you can So this is What I did And that's why I managed to buy Around this price range Very much Okay, so yeah Right So One thing That I also want to Highlight about Is he's a Founder Okay, he's a Founder of this company And if you are Having a Founder to run A company Right Definitely this Founder is Mission-driven A vision-driven As well And secondly He really wants The company The percentage Of shareholding That he's having Is 8.5% Which is considered A very huge amount Of shareholding Compared to other Mini investors So his interests Are definitely in line With shareholders Like you and me So when you Invest in companies Like these Founder-led companies Generally Perform better Actually Statistically have shown Founder-led companies Generally perform better Than other Companies That are just Higher CEO And higher chairman That's right Interesting I think he owns About 8.5% only So he's not The biggest Shareholder The biggest shareholder Is another company I can't remember But he's not The biggest shareholder So what it also means Is this He doesn't have The controlling rights To Sutterly Because there are Some Co-shareholders So I know Some people Am I to them? Yeah Like some people I know You all love Elon Musk a lot But Elon Musk But in this case Tencent there's no way you can do that There's no way you can do that So far so good So far so good But I think 8% to 10% Is considered a really huge state Because that's how your portfolio is Warren Buffett also Warren Buffett still jobs All around that But you look at Asia You won't see this kind of thing Asia they want to hold 20, 30 Add up together Day to day and their family Add up together 50% So that they make sure Anything wrong I can vote the rest of the people But in US Or in other parts of the world Not that much It's quite interesting So the next thing We want to see is The impact of COVID-19 Just now we saw 2018 And 2019 That increase The increment Let's take a look at Quarter by quarter Actually Q1 of 2020 So If you compare Q1 of 2019 And Q1 of 2020 That is the Percentage change Year on year Value added services Continue to increase By 27.5% Online gaming is really strong Social network is really strong Online advertisement Also grew by 30% And And think tax wise Also grew by 20% So you can see that It has almost minimal impact Even despite COVID-19 In fact it helps them Because they are online Their delivery Don't have any physical one Not that I know of All of them is online So You know Imagine all the tech companies Is improving They improve together as well Yeah So That's why When we come to Hey If we understand this It's a very wonderful company That Like solid foundation Solid management as well So like If 4 months of 55% gain Yeah So exactly Is this the right time to sell Actually what do you think Sean Actually right now If you look at valuation There are few ways to look at it So we are diving into valuation right now Okay Maybe you share Your portion first Then after I share A few ways to look at it A few ways to look at it So maybe I share From my point of view In terms of the valuation first So you can see If you go to morning style You can actually Also compare The current P ratio With the Five year average P ratio This is the latest Yeah This is I think I screenshot that About a few days ago So it shouldn't change that much Okay So P ratio Maybe I share mine I share mine Okay I let you share Yeah because I think the price drop recently So that's where It looks a bit different Okay Okay here You can see So this is the latest Fresh from the oven Yeah 17 July Which is Friday So what I personally like to take a look at Is the Yeah Change right From 49 to 48 49 to 48 Okay So I like to look at five years Now because you will know that Okay why is P ratio For those one new Basically it's how many times They are paying for the amount That they are making So P ratio You can see average on average Past We look at five years Five years is a good benchmark Because too long ago They are Slightly different company Now they are a bit more famous Already So last time You can see 20 plus You can see right here 2010 to 2012 Not many people know About 10 cent holding time You go and check YouTube You go and find don't have one Okay 2013 onwards They become quite famous And then you can see People pay roughly About 40 plus Five years average About 42 Right now it's 48 Definitely it's on the high side So if you ask me Whether I will buy right now My answer is I won't buy Okay Now one thing that I also like to take a look Right now it's like Well after But you see There may be an opportunity To buy Let me tell you why After I actually Did a tech workshop I mean for those Who are not in the Enners group We are going to conduct Another workshop For those who have attended A tech workshop And you enjoy it You want more workshop Can you office type workshop Or type more That you all appreciate Than we will do Otherwise Scarlinic some Will run nobody do So now Just type on the chat group That you all want more Because more workshop Yeah yeah yeah Because actually We enjoy it a lot Because What happened is When I did dive right I realized that The book value Price to book value May be a better indicator So based on price To book value The fires average is 10 Then now it's 9.8 Something So it's slightly Under value Based on the book value And I feel that The book value To me I began to realize That book value Increased steadily Over the years So it reflects A company's value Steadily Where else like sometimes I make a lot Next year I'll probably drop Because of one-time earnings One-time project and things But the book value builds up So if I use price To book is more stable entry Now based on price To book right Maybe right Now is also A okay time to invest A bit you know Not extremely a lot If you send You can see If you invest here Then better deal Right So just now Who is it that mentioned Wait just say that He believes that the stock price Will drop right I do hope that you are right Because Well Once you are a listed company There will be good news There will be bad news There will be good news There will be bad news So it's just hoping for More good news along the way But if you are very good There will be more good news Just like your employer Your employee You do work You are very hardworking You always perform So there will be more chance Of you getting Promoted But would that be bad days Would that be like Some days you fail In a project The answer is yes So we want to actually Invest when those times come Right But right now Doesn't seem too expensive Right now seems too Okay And remember This company right Is not slowing down Now Maybe I use another method I like to use another method Called this counter cash flow So This is Guru Focus It's a free website I mean You don't have to pay for it You can click on this Counter cash flow And we just need to Understand a few things So this one is in US Okay US one So right now The EPS is 1.4 Based on US Okay Based on US The stock price is 67 Preferably Don't look at the stock price Preferably Okay Now Let me ask you guys We do this together Collectively So that you come out With a valuation Using DCF DCF is We project How much money they can Make us And that's why They are worth this amount Okay So now Next 10 years Next 10 years What is a percentage You all type a number Is it 10%, 20% But before you type Before you type Let me show you Let me show you This is the past 10 years EPS EPS It's actually a conservative way Of looking at EPS It has been growing past 10 years at 33% Past 5 years At 31 The last year It was 8.4 So Okay I will ask you guys To avoid looking at 1 year 1 year is very subjective 1 year is very subjective Okay So don't look at 1 year Look at 10 years 5 years You can see Okay Now we look at the boot value Past 10 years is 40 Past 5 years is 36 Maybe it's Slightly slow now But what about the next 10 years What is a good and fair number To give it What do you all think You want to put what It can drive It can drive You show me the I don't type 20% 30% Okay So Okay What do you all think 20, 30, 20, 30 A lot of 20, 30 Okay It's up to you guys Up to you guys Some people say 15 Okay How much do you believe in the company This part is subjective But at least You look at the benchmark Past 5 years, 10 years Okay So you all must think of one thing Don't just look at data Look at the company What else do they have They have gaming Gaming is increasing a lot It's increasing that fast And they have Of course a lot of other things Payment FinTech So do you think It is going to slow now That's the question That's the question Okay So obviously the way I ask the question A fair A fair how you think Okay So some people say Tencent become $1 Already become billion So we see So you all say 20 Most people put 20 Yeah Put 20 Put 20 So what you do is this At the growth stage for the next 10 years I'm going to put 20 So I change to 20 Now after 10 years After 10 years This is how fund managers And investors will take a look So we say Okay they grow 20 20% at 10 years Then after 10 years What's going to happen Do you think they can continue to grow After 10 years After 10 years So 11 to 20 years Definitely slow down But how much can they grow You all tell me Okay We know that they can survive For a very long one I don't think they will only survive For 20 years But we want to have a certain Stage to calculate So tell me Right now 11 to 20 years Instead of 20% They will drop Drop to how much Drop to 15 For serious Okay I'm going to put 15 You all say one Okay 15 But I think I think for a company Like Tencent I saw somebody put 10 I'm very curious So I put a lower More conservative More conservative More conservative Okay So this is the amount This is the amount Okay I haven't see I haven't calculate for you guys Now the last thing I want to ask you is this What is a good When they say discount rate Discount rate It means how much money You want to make Every year you want to make How many percent 15% 10% Of course everybody Want to make 100% But if you put 100% I tell you in the end The calculator will show you You cannot buy anything Okay So what is a good percentage You want to buy You want to get 10% Okay Okay Let me put 10% Okay I'm going to put there 10% 10% 10% And then that's where Wait How come How come the number come up Did I type something wrong Okay Wait So growth rate is 10% Correct Yeah 10 11 10 How come Cannot grow at 10 years Okay I'm going to put 10.5 Let's see what happens Okay So the fair value Fair value are guys Ladies and gentlemen Based on the collective wisdom Of everybody On this Saturday afternoon The fair value is 57 57 So now the stock price is 67 So what should you do What should you do No that's why You shouldn't look at The calculator as you adjust I tell you I see a lot of students That I teach before Their hand will be itchy They say Actually Now they are thinking of it Reasonably 10% holding should be Go at 31 Go at 30 Okay Then they adjust 31 Fair value 100 plus can buy Don't do that So independently Go and do your adjustment And then after that Go and tell yourself Whether you can invest Okay personally Maybe I should have you What I think Let's take a look at it Personally my discount rate How much I want to make I want to make at least 15% 10% Then I think can make more One Don't need to put so much Then for the next 10 years I think 10% can grow at 30% My opinion I think can grow at 30% And then the growth rate After 10 years Because 10 years later From 11 to 20 Is a bit far away So I want to be A little bit more conservative I'm going to put Let's say 5% 4% to 5% Because maybe they are so big already They are so big until They grow at maybe Inflation rate Graphically around there Inflation rate So how much is this Oh 59 Still cannot buy So sorry guys Based on What we say Right now Okay This is how you calculate Don't be Don't be Don't rush I want to say don't rush I really very I really very generous I give them 30% go for you So don't rush Now is not the best time to buy PE ratio say don't buy PB say Around there So you give you a bit more time Wait for it to hit Maybe at least 59 Then you buy the fair value Buy a good company at a fair value That's where it's okay Then Chloe you always My time This kind of stock I cannot invest My Saturday afternoon I want to know how to make money So you tell me cannot make Then how Later Later I share with you how to make money Okay Okay But Do you guys think If it's not under value It's good to wait Some people say sell put Right But This Don't have I mean like US Don't have options For Hong Kong may have Hong Kong have Hong Kong have If you have Brokerage account In like ID Or Sassou Sassou I think You can have Options for 10 cent as well Yeah At least our options So that's why they are very hot US options So yeah So that's for But like In terms of selling Do you think It's time to sell No, no need I don't think it's Super overpriced Yeah But I like to take some profits I like to take some profits So very simple If you think it's overpriced By a certain percent Take a certain percent Take away Some of the profits So in case it drops Then you can pump back Then you will lose So you feel that If it's 10 percent Overvalue now Then you sell off 10 percent of the stocks Something like that As a benchmark The thing is to keep yourself Active In terms of like You don't Okay Actually I asked you to sell Don't sell right I believe 5, 10 years later It will still be very It will still be Making a lot of money The reason why Maybe you want to sell a bit Is to manage your own Expectation And your own anxiety So if you can Relax, do it Then you'll be okay Actually I totally agree On that I'm not going to sell My stocks away Because firstly How the stock price Has transformed over the years If you make 50 percent You decide to sell Then there will be You will never Be able to captivate The true Stock price gain For this company It's like Don't know how many times Over like Literally like 500 5,000 baggers The kind of return So in my opinion It's like If it's a good company And fundamentally It's still very sound The value is not Too overvalued I think it's still reasonable You should just keep it In my opinion Just keep it I will just come here And let the profit run And if there's deep I will actually buy more So that I have more Stake in this company Alright So I just checked So if you use Sexual capital You can sell 10 cent holdings Hong Kong put You can do that But you must calculate Hong Kong price You can calculate US price So 10 cent holdings The ticker symbol 007 something Yeah 0700 700 Or 700 700 10 cent holdings You can use sexual capital Get some money Sell some puts Okay So there are also some Risks to consider As an investor So some are playing It's like You have to consider Regulatory risks Because in China There are many regulations Online gaming There was a point in time You also The government You also The stock price Drop a lot Because they hit on hard On online gaming I hope they do it One more time Okay But you know people They cannot stop them from Online gaming It's not really totally illegal And stuff like that So it's very wicked Maybe certain kind Of games they can restrict So let's go and complain Ask all your China relative Go and complain Chloe you got some people In China you don't want to Go and complain Say that play too much game Then government will During elections say Or stop gaming Then the price drop Then we buy Okay Another risk to consider Is R&D risk Definitely it has Continue to invest In R&D to evolve So that The platform and everything That serve people even better And of course There's also data protection Race Some information So these are some Then if there's any breach Of such news It could be a good news A good time to enter Because when everybody is fearful I don't think fundamentally It won't It won't change The economy more Of Tencent Yeah So if there's such bad news Actually it's a very good So far don't have So far Tencent don't have This kind of issue And then The only kind of lawsuits They get into is anti-monopoly Because they are too big Anti-trust So it's like you are too big Then people will complain So they purposely let the Tiktok run They let the Tiktok run Then say no That one is a competitor But after that they also Go and sue Tiktok So they are having A lawsuit with Tiktok Hopefully Hopefully Tiktok Win the lawsuit Shit back into Tencent Then Tencent lose Loose some reputation Then we can go in I'm hoping they It's very funny As a shareholder We hope that they get No bad news Okay Actually Everybody happy But hopefully there's A good time to mic That's why being A contrarian investor We call it ourselves Like contrarian When people are Really We be fearful When people are fearful We be greedy So just now Sean Actually asked So this one Can you buy one How to make money Okay So there are some ways That we can also share With you guys To actually exactly How you can Make more income Generally come To fund your investment Let's swim See the ocean of abundance Right Exactly how to generate cash And I think Sean He has Some tips to share along the way As well Oh me I see some of their Comment very funny Celtic say Why is the ticker 700 when it's only Tencent Then what Should be what Then I don't know So I don't want to say Price target 700 Y'all can read Data into anything So now the price Target should Go up to 700 I don't know Okay Price target 700 Invest safely and profitably Yes I think the first one Is because it's so In coming situation Actually you've been Talking about it Again and again Like The data is not showing That the company is doing well Yet Especially you know Like the US market Going up and up It's I think in this period Of time Really have to be more conservative In terms of How we invest So for yourself Like how much Cash position Are you holding out Right now actually Oh no I'm distracted So Ken is home Everybody have very happy That he has safely Arrived from So you see Okay So I think It's a very good analogy In the sense Like you know When you are driving It can be very risky It can be very safe Right now It is like You are driving On the road That is not very The foundation Is not there I don't know Singapore Nikko Highway It collapse I feel that You invest right now You are riding on a trend That may collapse Because the foundation Is not strong Well They are building the foundation In terms of the economy Trying to support the stock price But I feel that right now It is not very safe So instead of driving A very heavy car Okay When I say heavy car Means you put in a lot of capital Right You ride bicycle You ride bicycle or motorbike What was the faster one Or you fly drone You fly drone You fly drone You can still go and see the place But you don't need to Get into the danger So that's the thing So using options It is a vehicle Now Stocks is a vehicle to get you rich You buy 10 cent holdings You buy Alibaba You buy like Facebook You buy I mean recently You are talking about Mcdonalds And EMC You buy all these companies That every day make money You are becoming richer But however Now the stock price Is at the high side So if you go and buy now There may be a certain risk Where short term wise It may drop And then you feel very lousy You feel like Oh shucks Stock market Cheat my money Okay Stock market never cheat your money It is basically The stock price drop But if you give yourself time You will make money However To risk yourself Losing a lot of money Swing up and down You use options Options It is another vehicle It's like a Okay maybe We talk about car It's like a Okay my analogies Will be quite lousy Plastic car Not so heavy Or carbon fibre car Something that is very light So that even when it crash The whole thing doesn't crash Along with it It can still float a bit You don't have to put in A lot of capital This one thing I like about options How many of you Actually done options before If you have done options before And you understand how powerful it is Right Can you please type options Or type like What is your favourite option strategy Because you got a lot of options Strategy Like BOSS Strategy S For me I So Dory said yes She is very thankful She earned from options Well I can share with you Now the market is going up So use stocks Use options You also can make Options will make more Okay because Funny You put in less You earn more This is a funny thing about options So a lot of people Actually do options Right A lot of favourite options And that's why Like when we were discussing About like the percentage Of cash allocation Like actually your Cash allocation portfolio Is relatively small You still have Yeah you have 70% cash And like 30% in investing Right now but Because your 30% Is mainly in options Right That's like Almost 100% Of a novel person's Portfolio Compared to the person Just buying stocks Because when you buy stocks You are using the heavy digital If the stock price Go against you Then that's how Lost But if you are using options If you do it safely And you know how to do it Actually your portfolio growth Is optimised And at the same time The risk is also reduced So I think it's I think it's amazing So another way that Apart from Investing Apart from using options Then you can consider Hey maybe you can start Your own online business Because True starting a business Hey you know recently I read About you know like Warren Buffett And in the past I always have This misconception that Hey Warren Buffett They earn his wealth Through investing Like pure investing But after I start reading Much much deeper I realise that Actually his wealth Is accumulated Through both Business and investing If he doesn't do business There is no way That he will become The Warren Buffett Here today Because the amount That he invests in business The cash That he generate Using business He fund his investment And that's how He really compounded So well So like Business and investing Is too powerful Vehicle that I felt like We should all learn And that's what Strong has been doing All this while actually Right Okay business wise I also begin to understand That Their business are Not all equal So there are some business That's capital heavy Intensive And right now Those capital intensive Businesses They are suffering I actually feel very sad Because I was actually talking To some of my friends They actually Do sell certain products And things like that Or they have certain Really suffered So And one of them They are like He was making millions on Then suddenly overnight Because You know Especially if they Actually own a building They have huge renter Wow suddenly He come and ask me For help also And then I was thinking How to help him So it's about digitalizing So one simple way One simple way is Actually now We don't do no mark Then how they make money They provide a lot Of online services That's where it can go Very fast So it's very COVID proposal So for me This isn't why I do business I can share with you something I feel that business Is a bit different from investing Business Is a bit like You join the voice The voice, right All those singing competition So Investing Is like I'm the judge I sit down there You're singing sucks I don't want you Then think I want you Right You know what I'm saying A shuck tank Okay A shuck tank Or people singing Then I will say No I don't want to choose you But now So investing Is you choose For you But when you do a business It is You are the singer You go out there Then Now the customers will judge you So this is A very interesting skill set But However You think about it Who actually make more money Is it the judge Or is it the The singer Is it the investor Make more money Or the business owner Make more money Well The business owner Actually they do make more money Because they contribute the ideas And they also take on A lot of Like the work themselves So business does need A bit of work Or online education Or that Frankly speaking I was very glad Because You know now Although I invest About 30% of my portfolio The market swings up and down We still make some income Using money But we do have Our online courses And things like that So we still make money together So think Think of the thing How to actually have Both Streams of income Multiple streams of income And also Yeah Can you all type Multiple streams of income Or passive income Think of different ways Otherwise One matter Who know investing They are still like surviving okay But the market becomes choppy They also become a bit How to say When their business is affected You feel on the edge Right Like You don't really have Other source of passive income When your investment May not be doing well All the time Then you feel like You know You really feel un-busy That's right That's right Oh Is there any ETF in US That has stake in Tencent and Alibaba Actually have It's called ARK Is it ARK? Let me just ARKF I just put Inside the chat for them So you can have this Okay This one actually I think have both Tencent Alibaba There's a lot of other things They do not focus on China tech Okay So I want to share that Really Having multiple streams Oh by the way Why do I actually Want to do business And all that Many many years ago When I started investing I realized Wow Investing very I'm the judge So I said This business Nike is good I buy Nike Then every day I mean not every day I won't say every day But we do know that When you buy Accumulate a lot of stocks Using options Using stocks right Your wealth increases But if your capital is small No matter how you increase Like 100% Increase sounds a lot Right But you only got $500 Increase 100% is like $500 It become $1000 It's like So in order to become wealthier You got to build more wealth Point more capital Capital is powerful Okay So capital is actually Yeah Yeah Because holding is Tesla That's right That's right Like really Like Warren Buffett Grew his wealth Because he really Allocated so much Of his cash From business To investment So That's why like Like if you know How to generate multiple Stream of income And that stream of income Right that passive income Become your source Of investment fund That's how If you have higher Our eyes Then you can grow Much much stronger The portfolio Will snowball much faster As well If you guys So far Please Or find it useful Please find it useful Then we will Conduct more sessions Like this To share with you More investment ideas And more income ideas Along the way And one more way That actually Sean He also personally Used to do Okay now He doesn't do that much Now But He also do Afflating Right So can you share with us Like how you Started your Afflating journey last time Wait a minute I just see some people Amating As you want to buy Singapore This one is to buy EWS is to buy Singapore as a whole So this one is one If listed Listed in Singapore Preferably It's not as effective Okay This one is very funny one So I was looking through Because By the way I think Really thank Chloe For hosting this session So I enjoy this session a lot Because I don't need To do much work She already Do all the homework Then after that I just have to Come in And share some of my ideas So please Thank Chloe I really learned a lot Yeah I learned from everyone As well But ETF is a great idea Sick ETF Sick ETF What? FITK No Talking about that ETF is sick So Just give Chloe a thumbs up I want to share This is very funny When I saw this slide She I think I mentioned to Chloe There before But maybe they cannot remember Totally You know last time I also want to make money To actually Put more money in the top market So So I got salary But I also want to make Extra income So very funny I actually go and learn How to do online business But you know It's not so straightforward Not so straightforward Then got one portion They talk about affiliate link You all about affiliate or not If you all about affiliate Please type A Please type A Now Affiliating You don't need to Create your own products Nothing You just Refer people So you go and recommend This one very good Then people buy Then you get some money So that time I tell you very funny I actually learned My Adam Koo Have you heard of Adam Koo before? Yep Adam Koo Okay So he actually Talk about affiliate link Then he talk about You can affiliate my products So I go and sign up For affiliate link I talk the link And then I put inside a forum Last time Last time My era It means Anywhere I'm 30 39 years old So my era Don't have Facebook yet I go and post it in forum Then next day I saw email In my Hotmail My PayPal Suddenly got money I said Click bank The PayPal Suddenly got money I make about If I remember correctly About $200 USD Then I go and check Then I realise People at the forum They click on my affiliate link Then I make money So I got very excited I want to go back to the forum And then tell them more I want to post it more You know forum last time They all remember the days of forum If you remember the days of forum You go into forum Can you please type F Then they have different topics So I want to go to Every topic and share them The link Very funny Yeah I want to spam the forum So that more people click on my link And they buy Then I make money Because $200 Not bad Free money Not safe free But when I go there I realise I cannot lock in the forum Because they ban me I'm not supposed to sell things In the forum I didn't know that So after that I'm thinking But I look at the money I say It's real money Then I didn't I just Adam Koo is the one He has a reputation Then he sells Then after that I actually went to Create a blog spot You know blog Don't know where that I'm using a very old term ICQ Blogspot Forum Then my blogspot Is now no longer there But what happened is I created a blogspot Then I talk about Adam Koo Then I write in a very Controversial way I say This guy you must be careful Of him So I feel that When I write something In a more Controversial way People will read So after that I write Adam Koo You're very very Be careful of him When you become rich You become evil Those kind of funny things I write in a very funny way Then after that Nobody come to my blogspot Then I realize How come I didn't Then I take my link I go to Adam Koo's blog And I post in the comment So when I post in the comment A lot of people read Suddenly Your guest One week I make how much money You just make a guest My first affiliate Project Your guest One week Just by writing a blog Like a simple Facebook post Only I make more than that Very funny Because now you see The thing is this Adam Koo's blog A lot of people reading You know what I'm saying A lot of his followers reading So when I write something Bad about him They will be angry with me They want to read So when they go and read Then after that Then they go and share And then after that I actually make about $12,000 In one week So I say You know what I do With this money I think the money I go and buy This company At that time It's called AIG Then after that I lost everything Anyway Doesn't matter It's a good start It's a good start At that point in time But at least the money I lost is from affiliate But some of them Eventually lost their money Then I begin to help To affiliate Like even chat Affiliate all people All I do Now the affiliate is so simple I just I think some of you You all see my email Or I put like Facebook posts Actually a lot of them Is affiliate link So because I think that Their products are not bad If I go and check it out They buy Actually I receive Additional income So my affiliate income Also a couple of thousands Of Facebook Then help me click on the link But it's quite easy money But all this money Gives me capital To buy more stocks And then blow my wealth So there are many different ways To do this one I think some of you have done it before Is that funny? And you know Like I heard some very Like interesting story About affiliate Like where for example Tony Robin He also has his own Online program If I'm not wrong One online program Is about 2000 USD And then some people Very funny I tell you what I do Chloe you are exactly correct After that you know Guys I realize almost every Every program They are going to attend Usually they got affiliate Affiliate program one So that time I want to attend Tony Robin's event Then after that His online one Online event It cost more 2000 plus So I went to I went to search Tony Robin's affiliate And then there's a way To actually sign off Affiliate link So I sign off Affiliate link Then I affiliate myself And then I got I think almost 20% Or 10% discount From the program So not bad And then you guess what Because after that I also affiliate his program Like I became More of the top few affiliates And one of them One of the people I affiliate is actually myself It's not funny So hey Your thing is smart If you want to attend something Go and check whether there's Affiliate program You can actually get back Some rebates If you think it's smart Type smart How do you start affiliate From zero Now very simple Now got Facebook Easy already Or you just Google That program Plus affiliate Whatever program Usually there will be a Affiliate program Okay I mean like Tony Robbins Affiliate Tony Robbins now Is because It's 50% So basically You save $1,000 If you enroll For self You spend $2,000 But you Affiliate yourself You get back $1,000 So basically you only Spend $1,000 To enroll In the program you want To enroll So I think that's the amazing part Hey Thank you very much For watching So like I say Just not somebody Amy actually mentioned I'm confused We participated live For something pre-accorded Yes Because Chloe Is actually having her Workshop on Saturday So we decided Why not today Just give her Let her rest But yeah She was still very keen On sharing on Tencent Because I heard from her That she told you guys last week That she will be sharing On Tencent So right Remember just now During the program Actually Sean Mentioned An ETF That actually invested In Tencent And that ETF Actually listed On US stock exchange So right During this Saturday You can actually Go and ask Chloe Go and ask Chloe Do you mean her live workshop Okay on how To actually What exactly Which ARK is that Okay there are a few ARK But you can Ask Chloe Which ARK is that And without further ado I'm going to show you How you can actually sign up For that workshop Okay so you can see right You can go to No you can You can actually Go to Facebook And type in Next-Level All-Stars Shop form endless Okay type in Next-Level All-Stars And then You scroll down Click Look at the announcement You click on the first one And then you can click Into this link To actually register Okay so when you click Into this link It will Promute Into the registration page If you have problems Registering Feel free to tap Under comment And I will help you Okay so this workshop Will happen Okay it will happen This Saturday This Saturday Okay it will be on E-T-F Okay E-T-F Alright It will be It will be done by Chloe It will not be recorded On Facebook That means you cannot You cannot It won't be kept Here on this Facebook But if let's say You want to get Assess A lifetime Assess to the recording You can actually Go to this Link And register And then we will tell you We will send you an Email on how To actually register For this workshop Okay cool And that will be All for tonight Hope you have Enjoyed the session Thank you so much Thank you so much For watching And staying through I have learned a lot And I hope you guys Have also Have also Learned a lot From Sean and Chloe As well And tomorrow There will be No show Rudy is on a break Because tomorrow Is a Hariraya So to our Malay friends Salamat Hariraya And that's about it And I will see you guys Again And thank you so much For watching Goodbye Good night At the end And have a good break Bye bye